Sales Associate Course - Enhance Your Florida Career!

1 Copyright Gold Coast Schools1 Chapter SixViolations of License Law; Penalties and ProceduresSales Associate CourseCopyright Gold Coast Schools2 License Law Violations Criminal Courts Civil Courts Administrative Agencies (FREC)Copyright Gold Coast Schools3 Criminal Penalties Administered by the Court Penalties are for violations of laws or rules In addition to FREC penaltiesCriminal Penalties2nd Degree222ndMisdemeanor1stDegree Misdemeanor3rdDegreeFelonyUp to $500 fine and/orimprisonment up to 60 daysUpto $1,000 fineAnd/or imprisonmentnot to exceed 1 yearUp to $5,000 fine and/or imprisonment up to 5 yearsFalse Advertising -Collectmonies not in employing brokers nameRentalInformationviolationsActing as a brokeror Sales Associate without holding an active.

2 Current Gold Coast Schools5 Civil Penalties Administered by Court Penalties are in terms of Dollars (Judgment) In addition to FREC penaltiesCopyright Gold Coast Schools6 Administrative Penalties Administered by FREC Violation of FS 475 Violation of FREC Rules 61J2 Administrative penalty only $5,000 maximum fineCopyright Gold Coast Schools7 Fraudulent Activities Breach of trust Concealment Conspiracy Conversion Culpable negligence Failure to account False or misleading advertising Filing false documents Misrepresentation Copyright Gold Coast Schools8 Fraudulent Activities (cont.) Moral turpitude Rendering an opinion of title Promise to resell Properties with liens Using lotteries Exception.

3 Contests where no purchase is required may be permissible Copyright Gold Coast Schools9 Range of Penalties (FREC) Reprimand Administrative Maximum $5,000 per violation Probation Suspension Revocation Denial of license FREC cannot deny payment of commission or imprisonCopyright Gold Coast Schools10 Range of Penalties (FREC) 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 yearsCopyright Gold Coast Schools11 Range of Penalties (FREC)

4 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 daysCopyright Gold Coast Schools12 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 necessaryDivision of Real Estate (Division)Copyright Gold Coast Schools13 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 payCopyright Gold Coast Schools14 Complaint is filed with DBPR/DRE Whether licensed or unlicensed person Must be Legally Sufficient -a violation of.

5 Florida Statute FREC rule DBPR ruleStep ComplaintComplaint ProcessDBPRC opyright Gold Coast Schools15 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 recommendationsStep InvestigationComplaint ProcessDREC opyright Gold Coast Schools16 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) ComplaintStep Probable CauseComplaint ProcessFRECC opyright Gold Coast Schools17 An Administrative (Formal)

6 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 HearingStep Administrative ComplaintComplaint ProcessFRECC opyright Gold Coast Schools18 INFORMAL -FREC Probable Cause Panel Members are excluded Issue resolved and penalty assessed unless there is Disagreement over material factsStep Formal/Informal Hearing Complaint ProcessFRECC opyright Gold Coast Schools19 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 involvedComplaint ProcessStepFormal/Informal Hearing (cont.)

7 DOAH then FRECC opyright Gold Coast Schools20 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 publicComplaint ProcessStepFinal OrderFRECC opyright Gold Coast Schools21 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 privilegesStep Judicial Review (Appeal)Complaint ProcessCOURTC opyright Gold Coast Schools22 Licensee Must Report Convictions Criminal Self-Reporting Document If convicted Found guilty Entered plea of nolocontendere Plead guilty Regardless of Adjudication Must report to the DBPR within 30 daysCopyright Gold Coast Schools23 Real Estate Recovery Fund Purpose Reimburse members of the public for Monetary (Compensatory) damages As a result of an act by licensee.

8 Not punitive damages Does not include legal fees or court Gold Coast Schools24 Real Estate Recovery Fund 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 FRECC opyright Gold Coast Schools25 Real Estate Recovery Fund 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 suspendedCopyright Gold Coast Schools26 Real Estate Recovery Fund Collection of fees for the fund are stopped when it reaches $1,000,000 and not resumed unless fund drops below $500,000 Broker -$ per year ($ with renewal) Sales Associate -$ per year ($ with renewal)

9 Copyright Gold Coast Schools27 Real Estate Recovery Fund 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 transactionCopyright Gold Coast Schools28 Real Estate Recovery Fund 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.