Unit 6: Violations of License Law, Penalties, and Procedures Flashcards
Failure to do or perform what has been promised.
Breach Of Trust
To mix together money or a deposit with personal funds; combine; intermingle.
Commingle
The act of keeping from sight or keeping secret.
Concealment
Unauthorized use or retention of money or property that rightfully belongs to another person.
Conversion
Inadequate attention to duties and obligations by those who know, or should know, what is required of them.
Culpable Negligence
The act of failing to pay money to a person entitled to receive it.
Failure To Account Or Deliver
The intent to misrepresent a material fact or to deceive in order to gain an unfair advantage or to harm another person.
Fraud
A piece of information that affects the value of real property and is relevant to a person making a decision about that property.
Material Fact
A false or misleading statement of a material fact; concealment of a material fact.
Misrepresentation
An act of corruption, vileness, or moral depravity; a disgraceful action or deed.
Moral Turpitude
True/False A broker placed security deposits from tenants into the business operating account. This is an example of commingling funds.
True
True/False Examples of moral turpitude include embezzlement and crimes of larceny.
True
Conversion is the withholding of information.
False. Concealment is the withholding of information or a material fact.
Formal allegation or charge.
Complaint
A complaint that contains facts indicating that a violation of a Florida statute, a DBPR rule, or a FREC rule has occurred.
Legally Sufficient
Emergency or immediate action taken by the secretary of the DBPR against a license to protect the public.
Summary (emergency) Suspension Order
True/False A complaint is legally sufficient if it contains facts indicating that a violation of Florida statute has occurred.
True
True/False The FREC may issue a summary suspension when a licensee’s actions endanger the public.
False. A summary suspension (or emergency suspension) must be issued by the DBPR secretary or a legally appointed designee of the secretary.
Reasonable grounds or justification for prosecuting.
Probable Cause
True/False A probable-cause panel may consist of one consumer member who currently serves on the Commission and one former Commission professional member who holds an active real estate license.
True
True/False If probable cause is found, a formal complaint is filed.
True
True/False The probable-cause panel is composed of two current members of the Commission.
False. One of the panel members must be a current FREC member. The other member may be a former commissioner. One panel member must be a real estate licensee.
True/False Probable-cause proceedings are open to the public.
False. Probable-cause proceedings are not open to the public, and the remaining FREC members are prohibited from attending.
An outline of the charges against a licensee that must be answered within the statutory time limit.
Formal (administrative) Complaint
An agreement as to the penalty reached between the attorneys for the DRE and the licensee or licensee’s attorney.
Stipulation
A licensee-respondent may choose to avoid a disciplinary hearing and relinquish the real estate license in lieu of discipline, permanently revoking the license.
Voluntary Relinquishment For Permanent Revocation
A respondent who does not dispute allegations of material fact in the administrative complaint may request an informal hearing before the FREC for final action on the complaint.
Informal Hearing
A session in which testimony and arguments are presented, especially before an official.
Formal Hearing
The governmental entity that hears all formal hearings resulting from an administrative complaint against a licensee.
Division Of Administrative Hearings (DOAH)
A writ or order commanding the person named to appear and testify in a legal proceeding.
Subpoena
A determination by an administrative law judge that includes findings and conclusions, as well as other information required by law or agency rule to be in a final order.
Recommended Order
A decision rendered by the FREC.
Final Order
True/False A settlement stipulation is an agreement as to the facts of the case and an appropriate penalty negotiated between the attorneys for the DRE and the licensee or the licensee’s attorney.
True
True/False A subpoena is a legal document commanding an individual to appear at a certain time and place to give testimony.
True
True/False If a licensee who is the subject of an administrative complaint fails to timely respond to the Election of Rights, the licensee has waived the Election of Rights, and the case will be heard in a formal hearing.
False. If the subject of an administrative complaint fails to timely respond to the Election of Rights, the licensee-respondent is considered to have waived the Election of Rights, and the case is heard by the FREC in an informal hearing.
True/False Licensees are given 90 days to file an appeal of the final order.
False. The licensee may challenge the final order within 30 days by filing an appeal.
True/False The Florida Real Estate Commission can order a real estate licensee to pay restitution to a seller who was harmed by a licensee.
False. The Commission does not have the authority to order restitution to an injured party. If the acts of a licensee harm a consumer, the injured party may seek damages in a court of law.
True/False The Florida Real Estate Commission possesses the authority to sentence a licensee to imprisonment.
False. All imprisonment penalties must be obtained in a court of law because the Commission lacks the authority to assess such penalties.
True/False An administrative fine of up to $5,000 may be issued for a violation of Chapters 455 and 475, F.S.
True
True/False The DBPR may issue a notice of noncompliance for any minor violation.
False. The Commission has established in rule a list of the violations for which a notice of noncompliance may be issued for first-time offenses only.
True/False A licensee who receives a notice of noncompliance for a minor violation must take action to correct the violation within 15 days.
True
True/False If the Florida legislature does not classify a misdemeanor, then it is punishable as a misdemeanor of the second degree.
True
True/False Unlicensed activity is a third-degree felony.
True
True/False Real estate licensees must inform the Commission within 60 days of being convicted or found guilty of a crime.
False. Florida Statute requires licensees to inform the FREC, in writing, within 30 days of being convicted or found guilty of a crime.
True/False Falsifying a license application is a second-degree misdemeanor.
False. It is a third-degree felony to falsify a license application.
True/False The maximum payment from the recovery fund for a single real estate transaction is $50,000.
True
True/False A broker who complies with an escrow disbursement order (EDO) may be reimbursed the amount of the EDO, attorney’s fees, and court costs.
True
True/False A claim will be denied if the offending licensee had an expired license at the time of the transaction.
True
True/False The claimant can be reimbursed for punitive damages from the recovery fund.
False. Only actual damages awarded by a court can be reimbursed from the fund. Punitive damages cannot be paid from the fund.
Another term for a formal complaint is
A) an administrative complaint.
B) prima facie evidence.
C) a consumer complaint.
D) legally sufficient.
A) an administrative complaint.
A buyer was defrauded by a real estate licensee. The buyer is awarded a judgment against the licensee in the amount of $7,000 damages plus $2,300 for attorney’s fees and court costs. The buyer has been unable to collect on the judgment, but it is determined that the buyer may seek reimbursement from the Real Estate Recovery Fund. How much can the buyer recover from the Fund?
A) $50,000
B) $7,000
C) $10,000
D) $9,300
B) $7,000
A case is heard before an administrative law judge in a formal hearing. In such cases, who renders the final order?
A) Administrative law judge
B) FREC (with members who served on the probable-cause panel excused)
C) Attorney general
D) DBPR secretary
B) FREC (with members who served on the probable-cause panel excused)
Which violation is a third-degree felony?
A) Individual performs real estate services for compensation without a real estate license
B) False advertising
C) Broker fails to register a trade with the Commission
D) Sales associate fails to deliver an earnest money deposit to her broker before the end of the next business day
A) Individual performs real estate services for compensation without a real estate license
Under Florida Statute 455, which penalty may be imposed on an individual for unlicensed practice of real estate?
A) $5,000 fine per count
B) Suspension
C) Revocation
D) Any of these
A) $5,000 fine per count
The maximum amount that may be collected from the Real Estate Recovery Fund as a result of a single real estate transaction is
A) $25,000.
B) $100,000.
C) $150,000.
D) $50,000.
D) $50,000.
A broker who fails to pay an earnest money deposit at the title closing in accordance with the contract for sale and purchase may be charged with which offense?
A) Commingling
B) Moral turpitude
C) Failure to account or deliver
D) Breach of contract
C) Failure to account or deliver
When a consumer files a complaint against a real estate licensee that contains facts indicating that a violation of FREC rules has occurred, the complaint is said to be
A) prima facie evidence.
B) formal.
C) legally sufficient.
D) evidence.
C) legally sufficient.
Which penalty is NOT an administrative penalty that may be imposed by the FREC?
A) Revocation
B) $5,000 fine for violation of Chapter 455
C) Probation
D) Restitution to the injured party
D) Restitution to the injured party
The broker followed the directions issued in an escrow disbursement order that became the subject of a lawsuit. The consumer-plaintiff obtained a judgment against the licensed real estate broker. It is determined that the consumer is eligible to seek reimbursement from the Real Estate Recovery Fund. The fund may NOT reimburse which expense?
A) Plaintiff’s attorney’s fees
B) Punitive damages
C) Broker-defendant’s attorney’s fees
D) Broker-defendant’s court costs
B) Punitive damages
Which offense does NOT have to be self-reported to the FREC?
A) Plea of nolo contendere to a crime
B) First-degree misdemeanor
C) Second-degree misdemeanor that occurred in Georgia
D) Small claims court case over commission dispute
Explanation
D) Small claims court case over commission dispute
A warning for an initial offense that allows a licensee to correct the minor infraction without consequence is called
A) an administrative fine.
B) a citation.
C) a letter of reprimand.
D) a notice of noncompliance.
D) a notice of noncompliance.
