Sales Associate Course - Gold Coast Schools · PDF fileCriminal Penalties 2nd Degree222nd...

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Chapter Six

Violations of License Law;

Penalties and Procedures

Sales Associate Course


License Law Violations

Criminal Courts

Civil Courts

Administrative Agencies (FREC)


Criminal Penalties

Administered by the Court

Penalties are for violations of laws or

rules

In addition to FREC penalties

Criminal Penalties

2nd Degree222nd

Misdemeanor

1st Degree

Misdemeanor

3rd Degree

Felony

Up to $500 fine

and/or

imprisonment up to

60 days

Up to $1,000 fine

And/or

imprisonment

not to exceed 1

year

Up to $5,000 fine

and/or

imprisonment up to

5 years

False Advertising -

Collect monies not

in employing

brokers name

Rental Information

violations

Acting as a broker

or sales associate

without holding an

active, current license.


Civil Penalties

Administered by Court

Penalties are in terms of Dollars

(Judgment)

In addition to FREC penalties


Administrative Penalties

Administered by FREC

Violation of FS 475

Violation of FREC Rules – 61J2

Administrative penalty only

$5,000 maximum fine


Fraudulent Activities

Breach of trust

Concealment

Conspiracy

Conversion

Culpable negligence

Failure to account

False or misleading advertising

Filing false documents

Misrepresentation


Fraudulent Activities (cont.)

Moral turpitude

Rendering an opinion of title

Promise to resell

Properties with liens

Using lotteries

▪ Exception: contests where no purchase is

required may be permissible


Range of Penalties (FREC)

Reprimand

Administrative▪ Maximum $5,000 per violation

Probation

Suspension

Revocation

Denial of license

FREC cannot deny payment of

commission or imprison



Revocation

▪ Most severe penalty that FREC can

administer

▪ Permanent with two exceptions

▪ 1) license issued in error

▪ 2) fraudulent renewal or obtaining

license by fraud

▪ Renewing without completing

education requirement

▪ May reapply after 5 years



Denial of License

▪ Lack character or competence

▪ Would have resulted in suspension or

revocation if licensed

▪ Did not pass State exam

▪ Didn’t pay application fee

▪ Application denied

▪ Applicant notified

▪ Request a formal hearing to protest within

21 days


Intermediary▪ Between

▪ FREC

▪ DBPR

DRE▪ Administrative functions

▪ Filing, record keeping, etc

▪ Investigations

▪ Inspects and audits real estate offices

▪ Prosecution of complaints

▪ Determines if investigation is necessary

Division of Real Estate (Division)


Range of Penalties (Division)

Conducts Office Inspections and Audits

▪ Notice of Noncompliance

▪ First time minor violation

▪ 15 days to correct

▪ Failure to correct- citation issued

▪ Citation

▪ requires payment of fine

▪ Citation not disputed within 30 days – final

order

▪ Final order – 30 days to pay


▪ Complaint is filed with DBPR/DRE

▪ Whether licensed or unlicensed person

▪ Must be Legally Sufficient - a violation of:▪ Florida Statute

▪ FREC rule

▪ DBPR rule

Step Complaint

Complaint Process DBPR


DBPR investigates through DRE

Minor violation

▪ May issue notice of noncompliance or

citation

When complete a report is sent to

FREC’s Probable Cause Panel

Investigator may not express opinions

or recommendations

Step Investigation

Complaint Process DRE


2 members of FREC (may use one

former member if necessary)

Operates similar to a grand jury

Possible outcomes are

▪ Dismiss the Case

▪ Letter of Guidance

▪ Formal (Administrative) Complaint

Step Probable Cause

Complaint Process FREC


An Administrative (Formal) Complaint is

an outline of the charges

▪ Must be answered within 21 days or the

license is usually Revoked

▪ Respondent files Election of Rights Form

▪ No dispute of facts – Informal Hearing

Stipulation

▪ Negotiated settlement

Dispute of facts

▪ Formal Hearing

Step Administrative Complaint



INFORMAL - FREC

Probable Cause Panel Members are

excluded

Issue resolved and penalty assessed

unless there is Disagreement over

material facts

Step Formal/Informal Hearing



Formal

Conducted similar to court by an

Administrative Law Judge

▪ Member of the Florida Bar Association at

least 5 years

▪ May issue Subpoenas , Swear Witnesses

and Take Testimony

▪ Issues a Recommended Order to all parties

involved

Complaint Process

Step Formal/Informal Hearing (cont.)

DOAH then

FREC


Members of FREC not on the Probable Cause Panel issue a Final Order which may Accept , Reject or modify the recommended order

Take effect in 30 days

Summary Suspension may be issued by the Secretary of DBPR in situations posing an immediate danger to the public

Complaint Process

Step Final Order

FREC


A Judicial Review (Appeal) may be filed with

the District Court of Appeal within 30 days

▪ An appeal does not stay enforcement (stop

enforcement)

▪ Writ of Supersedeas (Stay of enforcement)–

suspends enforcement of the Final Order pending

appeal

▪ Writ of Mandamus

▪ Court order to restore the licensee’s privileges

Step Judicial Review (Appeal)

Complaint Process COURT


Licensee Must Report Convictions

Criminal Self-Reporting Document

▪ If convicted

▪ Found guilty

▪ Entered plea of nolo contendere

▪ Plead guilty

Regardless of Adjudication

▪ Must report to the DBPR within 30 days


Real Estate Recovery Fund

Purpose

▪ Reimburse members of the public for

Monetary (Compensatory) damages

▪ As a result of an act by licensee.

▪ Not punitive damages

▪ Does not include legal fees or court

costs.



In the case of licensee wrong doing

▪ The Claimant must▪ First win a Civil Judgment against a

licensee in a Florida court

▪ Collect as much as possible from licensee

▪ Make a claim for the unsatisfied portion up to a maximum of

▪ $ 50,000 for a single transaction

▪ $ 150,000 for multiple transactions against one licensee

▪ Assign the judgment to FREC



Payment from the fund for wrong

doing results

▪ Immediate Suspension until repaid with

interest,

▪ Except, if suspension would conflict

with Federal Bankruptcy Law

▪ Only violation when license is

automatically suspended



Collection of fees for the fund are

stopped when it reaches $1,000,000

and not resumed unless fund drops

below $500,000

▪ Broker - $3.50 per year ($7.00 with

renewal)

▪ Sales associate - $1.50 per year ($3.00

with renewal)



Persons not covered

▪ Judgment debtor or spouse

▪ Licensee unless buyer or seller

Payment to licensee

▪ Acting as buyer or seller

▪ Suffered monetary damages as a result

of a licensee in the transaction



Reimburse a broker for damages

▪ Resulting from complying with an Escrow

Disbursement Order (EDO)

▪ May include legal fees or court costs for

broker or if ordered for the prevailing party.

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Sales Associate Course - Gold Coast Schools · PDF fileCriminal Penalties 2nd Degree222nd...

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