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Violations of License Law: Penalties & Procedures


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First Degree Misdemeanor
- F.S. 475, violating requirements regarding rental lists, information and contracts
Second degree misdemeanor
- disseminating false or misleading advertising F.S. 475
Third degree felonies
- up to $5000 in fines and up to 5 years in prison
Culpable negligence
- broker operates in a reckless, careless, and excessively negligent manner
Misrepresentation
- omission of facts ex; 4 bedroom house listed on MLS as 3 bedroom house
Properties with liens
- if a mortgage or other liens exist against property, the broker must inform a prospective
Range of Penalties
lowest to highest
Administrative
- may be imposed by the commission (FREC) for violations of law or rules in amounts up to $5000 per
Disciplinary Process
1. Complaint
Complaint
describes alleged violation to determine if the complaint is legally sufficient
Investigation
if complaint is legally sufficient its sent to enforcement section of the division, case number
Formal/ Informal Hearing
administrative law judge can issue subpoenas for witnesses and compel attendance of
Judicial Review (Appeal Process)
petition for review may be filed with the FL district court of appeals
FL Real Estate Recovery Fund (FS 475)
established for the purpose of reimbursing persons or entities that have
Complaint, Investigation and Hearing Procedure for Real Estate Licensees
The Division is charged with the
1. COMPLAINT
Anyone can file a complaint with the Department against a licensee.
Legally sufficient complaint
this means that the complaint must allege that a violation of Florida Statute, DBPR
Summary suspension
is an EMERGENCY suspension order. It is issued by the Secretary of the DBPR when the public
2. INVESTIGATION
An INVESTIGATOR is appointed if the DBPR feels that the complaint is legally sufficient; or
3. PROBABLE CAUSE
TWO MEMBERS of the FREC are appointed by the Chairperson to review the investigator's report
Grand jury
These two members act as a grand jury: they determine if they believe there is a law violation- not
If the panel does not believe probable cause exists
The Department has ten days to override the decision and
If the panel believes there is probable cause
the panel tells the Department to file a formal complaint against
4. FORMAL COMPLAINT
If probable cause is found, a FORMAL or "ADMINISTRATIVE " complaint is filed against the
Election of Right form
license in the complaint will be issued an Election of Rights form, which will explain the
Stipulation
which is voluntary agreement between the Division of Real Estate and the licensee, which will then
Voluntary Relinquishment for Permanent Revocation
These agreements will still be set before the FREC so that
5. INFORMAL HEARING
Is held at a meeting of the FREC, usually at its regular meeting time.
6. FORMAL HEARING
Each party involved in the case has the right to an attorney.
Notice must be given to the parties charged
Must include:
Recommended Order
The administrative prepare law judge.
7. FINAL ORDER
A FINAL ORDER PANEL is convened of all the members of FREC EXEPT those that sat on the Probable
8.JUDICAL REVIEW
The licensee may appeal to the courts if the FREC did not rule in his favor. The licensee
Stay Enforcement definition
The act of temporarily stopping a judicial proceeding through the order of a court.
Writ of supersedeas
A party seeking a stay of the enforcement of a judgment or order pending appeal may serve
Violations and Penalties
The Florida Real Estate Commission is authorized to do a number of tasks. These are:
Denial of license
When a license is denied by the FREC, a copy of the order is mailed to the applicant by
basis for DENIAL of a license
-Did not file an application in the proper form or pay the correct fee,
Refusal to RENEW a license may be the following:
- Did not file the proper paperwork in a timely fashion,
Suspend a license
A suspension of a license is considered a SHORT TERM, temporary penalty that can last UP TP
Revocation of License
is PERNAMENT and as such it is a very serious punishment.
Revocation without Prejudice
The only exceptions to this rule is when:
Issue Citations
is issued for MINOR violations of the law when public welfare is not threatened
Administrative Fines
The FREC has the right under law to fine anyone found guilty of a violation of Chapters 455
Probation
Probation as a penalty, unless otherwise stated, IS FOR a PERIOD OF 90 DAYS starting within 30 days
Noncompliance Notices
the FREC has set forth the rules, and statutes that are considered minor violations and for
Penalties issued by a Court of Law
The Department and the FREC
Civil Penalties
Buyers or sellers or tenants may seek legal action against brokers when they feel they have been
Real Estate Recovery Fund
designed to serve as consumer protection for those consumers who were harmed in a
Real Estate Recovery Fund financing
The fund is financed through money RECEIVED from ADMINISTRATIVE FINES and a
To obtain the funds
a CIVIL suit must be filed against a broker or sales associate claiming a violation of
Real Estate Recovery Fund Exception
The only exception to the licensee being suspended for a claim on the
The licensee charged in a Department of Business and Professional Regulation complaint is made public when?
10
an exception to the recommended order?
15
he could receive, unless otherwise stated by the commission?
90 days
What Florida agency is responsible for investigating real estate complaints?
Department of Business and
Why is a Summary Suspension Summary given?
because the Department feels that there is an immediate danger to
to file an appeal with the district court?
30 days
The Department receives an unsigned complaint. What can the Department do?
Investigate the complaint if the
Recovery Fund. What would be the outcome of this request?
Because the Florida Real Estate Commission issued an
What does the Probable Cause Panel due?
holds an investigation, and, if probable cause is found to exist, will
time period is a Maximum a suspended license can last?
10 years
pursuant to other law, and under contract with government entities
Division of Administrative Hearing (DOAH)
These rights are enforced by the
Florida Homeowners Construction Recovery Fund
by any broker or sales associate
The Florida Real Estate Recovery Fund
DBPR stands for
Department of Business and Professional Regulation
FREC stands for
Florida Real Estate Commission
DOAH stands for
The Division of Administrative Hearing
material fact
Division of Administrative Hearing
FNMA stands for
Fannie Mae
Federal Legislation focuses primarily on
Anti-Discrimination laws and Fair Trade practices
State laws and licensing regulations focus on
agency and disclosure requirements and regulating certain brokerage
professional image in the community, and avoid
regulatory sanctions and lawsuits
Federal and State governments have enacted laws prohibiting
discrimination in the national housing market
of these Fair Housing laws, or Equal Opportunity Housing laws, is to
give all people in the country an equal
religion, sex, national origin, familial status, and disability
Fair Housing Act
relates to selling, renting, inheriting, and conveying real estate
Civil Rights Act of 1866
The prohibition relates to
selling, renting, inheriting, and conveying real estate
president issued Executive Order 11063 to
prevent discrimination in residential properties financed by FHA and
The Fair Housing Act, prohibits discrimination in housing based on
race, color, religion, or national origin
OFHEO stands for
Office of Fair Housing and Equal Opportunity
of the
Department of Housing and Urban Development
terms for the purpose of discriminating. For example,
an agent may not inform a minority buyer that the seller has
An agent may not advertise residential properties in such a way as to
restrict their availability to any
An agent may not alter the nature or quality of brokerage services to any party based on
race, color, sex,
customary to show qualified buyers prospective properties immediately, an agent may not
alter that practice for
Steering is the practice of
directly or indirectly channeling customers toward or away from homes and
Example of Steering
An agent tells Buyer A that a neighborhood is extremely attractive, and that desirable
Blockbusting is the practice of
inducing owners in an area to sell or rent to avoid an impending change in the
Example of Blockbusting
Agent Smith tells neighborhood owners that several minority families are moving in, and that
It is discriminatory to restrict participation in any multiple listing service based on one's
race, religion,
Redlining is
the residential financing practice of refusing to make loans on properties in a certain neighborhood
An exemption of the Fair Housing Act is
a privately owned single-family home where no broker is used and no
An exemption of the Fair Housing Act is a
rental of an apartment in a 1-4 unit building where the owner is
Exemptions of the Fair Housing Act are
facilities owned by private clubs and leased Non-Commercially to members
property based on race is
prohibited under the provisions of the Civil Rights Act of 1866. Thus, while the
In 1972, Housing of Urban Development instituted a requirement that brokers display a standard
Department of
The Department of Housing and Urban Development poster affirms the broker's
compliance with Fair Housing laws in
Amendments to Federal Fair Housing Laws prohibit discrimination based on
sex and discrimination against
Federal Fair Housing Laws do Not prohibit age and family status discrimination in
government designated
Fair Housing laws apply to home sellers as well as to
agents, with the exception of the exemptions
If an agent goes along with a client's discriminatory act, the agent is
equally liable for violation of Fair Housing
It is imperative to avoid complicity with client discrimination. An agent should
withdraw from any
An example of potential client discrimination is
refusing a full-price offer from a party
conjunction with federal or local enforcement authorities
one year
enforcement authorities
The Department of Housing and Urban Development (HUD)
Development, a party may file suit in state or federal court within _____ of the alleged violation
two years
his or her business. For example,
a discriminating home builder may be restrained from selling available
including
humiliation, suffering, and pain
If a Fair Housing violation discrimination is confirmed in court, the injured party may
seek equitable relief,
promote
equal opportunity in housing
Equal Credit Opportunity Act (ECOA) was enacted in
1974
The Equal Credit Opportunity Act requires lenders to be fair and impartial in determining
whom qualifies for a
With regard to the Equal Credit Opportunity Act of 1974, A lender may not discriminate on the basis of
race, color,
denied credit of the
reasons for the denial
their loans
Home Mortgage Disclosure Act
Trade associations representing the real estate industry have instituted their own codes of
ethics and
One standard of most trade associations relating to their own codes of ethics and professional practices is
job
beyond the agent's qualifications, such as
law, investment counseling, securities brokerage, and tax advising
Most codes of ethics uphold the commitment to fulfill fiduciary duties. Specific applications include
honestly
customers. Some of the guidelines for working with customers include
honestly representing market value and
careful to disclose
that the agent is going to receive compensation from more than one party in a transaction
Professional conduct excludes disparagement of competitors. Real estate professionals also
forgo pursuit of
Spirit and letter means
In letter means to do exactly what it says in the text. In spirit means to follow the
Real estate professionals must comply with Fair Housing laws in
spirit and letter
ECOA stands for
Equal Credit Opportunity Act
Disparagement means
to speak of in a slighting or disrespectful way, belittle. To reduce in esteem or rank
Second-degree misdemeanors
False and misleading advertising and maybe punished by a fine up to $500 and/or
First-degree misdemeanors
Punishable by a fine up to $1,000 and/or imprisonment not to exceed 1 year. Rental
Third-degree felonies
Anyone that act as a broker or sales associate without being the holder of a valid and
The Florida Real Estate Recovery Fund
Maintained by fees and fines paid by licensees.
The licensee charged in a DBPR a complaint is made public when?
10 day after probable cause is found to exist.
exception to the Recommended Order?
15 days
What Florida agency is responsible for investigating real estate complains
DBPR (Department of Business and
Why is a summary suspension order given?
Because the department feels hat there is an immediate danger to
is true?
Because the FREC issues the Earnest Money Disbursement Order, the broker is entitled to repayment up
The Probable Cause panel
Holds and investigation, and , if probable cause is found to exist, will direct the
a suspension can last?
The maximum is 10 years
under contract with governmental entities
The Division of administrative hearings (DOAH)
The __________ administers and enforces the real estate license law, chapter 475, part1, Florida Statues
FREC
rights are enforced by:
Florida Homeowners' Construction Recovery Fund.
probation, he could receive, unless otherwise stated by the Commission.
90 day
The Division of Real Estate (DRE)
Is unit under the Department of Business and Professional Regulation (DBPR)
Steering
Is the practice of directly or indirectly channeling customers toward or away from homes and
Blockbusting
Is the practice of inducting owners in an area to sell or rent to avoid and impending change in the
Rendling
Is the residential financing practice of refusing to make loans on properties in a certain
Final Order
A Final Order Panel is convened of all the members of FREC except those that sat on the Probable
Formal Hearing
The DBPR requests that the case be prosecuted by an administrative law judge.
Formal Complain
If probable cause is found, a formal or "administrative" complaint is filed against the licensee
Probable Cause
Two members of the FREC are appointed by the Chairperson to review the investigator's report and
Suspended License
A suspension of a license is considered a short term, temporary penalty that can last up to
Who is charged with the responsibility of investigation of potential licenses and current licensees.
The Division
Prima face evidence
Requieren no further proof, acceptable on the face.
the licensee charged in a DBPR complaint is made public when?
10 days after probable cause is found to exist
what FL agency is responsible for investigating real estate complaints?
DBPR
the Dept receives an unsigned complaint. what can they do?
investigate if they wish
happen?
bc the FREc issued the earnest money disbursement order, the broker is entitled to repayment up to $50000
The Probable Cause Panel:
holds an investigation and if probable cause is found to exist, will direct the
The division of administrative hearings
provides independent Administrative Law Judges to conduct hearings pursuant
DOAH
division of administrative hearings
administrative complaint
formal complaint; defines all charges; Dept has limitation of 5 years to file the
election of rights
explains the hearing process
informal hearing
held at a meeting of the FREC, if agreed its resolved if not the case is sent to
Final order panel
receives recommended order from adminstrative law judge with exceptions. licensee has right
revocation of license:
is permanent
fines cant exceed how much for a first offense?
$5000 for each offense
when does probation start?
30 days after the Final order
Real Estate Recovery Fund; where does it come from?
serves as consumer protection for those who were harmed in