Unit 6 - 2 State - Violations of License Law, Penalties, and Procedures

Question 1

Unit 6
Settlement stipulation

Answer 1

DRE and the licensee or licensee’s attorney agree to the facts of the case in the complaint

Question 2

Unit 6
Who CANNOT order restitution to an injured party

Answer 2

FREC cannot order restitution to an injured party

Question 3

Unit 6
Notice of Noncompliance

Answer 3

*First time is a minor violation
*Must correct within 15 days
*FREC will NEVER give notice of noncompliance at a hearing

Question 4

Unit 6
Giving false information on license application is what type of criminal penalty?

Answer 4

Third-degree felony

Question 5

Unit 6
If convicted or found guilty of a crime, how long to notify FREC?

Answer 5

30 days

Question 6

Unit 6
If broker complies with EDO but sued, how much reimbursed and what fees from recovery fund?

Answer 6

max $50,000
Reimbursed fees and court costs, attorney’s fees and court costs
NO punitive damages or interest

Question 7

Unit 6
legally sufficient

Answer 7

facts that a violation has occurred

Question 8

Unit 6
Complaint Process

Answer 8

1. file complaint (is it legally sufficient?)
2. investigation (summary suspension = emergency suspension if could harm public)
3. probable cause made by majority vote of FREC’s probable-cause panel (2 people with 1 being current or former FREC member)
4. Formal complaint then licensee chooses informal hearing (don’t dispute charges), formal hearing, or waive right to be heard
   possible settlement stipulation (agree outside of court to facts and punishment)
5. Case presented in either informal or formal hearing
6. Final order prepared by FREC (minus the probable cause panel)
7. Judicial review (appeal) - can request Stay of Enforcement to continue practice with licensee until appeal process completed

Question 9

Unit 6
Types of Administrative Penalties

Answer 9

1. notice of noncompliance (minor violation, 15 days to correct)
2. citation normally $100-$500
3. refuse licenses
4. probation (guidance of FREC for period of time)
5. larger fine up to $5000 for each major violation
6. suspension of licenses
7. revocation of license

Question 10

Unit 6
How long to accept or reject citation?

Answer 10

30 days

Question 11

Unit 6
Second-Degree misdemeanor

Answer 11

least serious
advertise property or services in fraudulent, false, deceptive, or misleading manor
max $500 / 60 days

Question 12

Unit 6
First-Degree misdemeanor

Answer 12

most serious misdemeanor
fail to provide accurate and current rental information for a fee
max $1000 / 1 year

Question 13

Unit 6
Third-Degree Felony

Answer 13

felony = most serious crimes
1st degree felony = most serious felony
false info on license application
conducting unlicensed activity
max $5000 / 5 years

Question 14

Unit 6

Culpable Negligence

Answer 14

not intentional, disreguard of consequences

do not give ordinary, careful attention to brokerage and do not exercise reasonable control over agents