Businesses that cannot Register to perform real estate services
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First Degree misdemeanor
Fine up to 1,000 and/or up to 1yr prison
Example: False rental info
Pay of commission
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Second Degree
Misdemeanor
Punishable by fine up to $500 and/or up to 60days prison
Example: False advertising
Third degree Felony
Criminal fine up to $5,000 and/or up to 5year prison
Reprimand
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Administrative
Fine
Max $5,000 per offense
Probation
FREC Rule
-FREC allows the licensee to actively continue practicing real estate
-Licensee must complete continuing ed courses as specified within 90 days.
Suspension
-Temporary penalty
-Maximum suspension period is 10 years
-Second suspension usually results in license revocation
Revocation
-Maximum Penalty
-License is permanently cancelled along with a maximum penalty of 5,000
Notice of
Noncompliance
-FREC rule
-Minor violation that does not affect the health, safety, welfare, or threatened harm to the public
-Licensee has 15 days to correct the violation
-failure to correct within 15 days result in a citation
Citation
-issued for an initial single violation
-if not disputed within 30 days becomes a final order
-maximum fine up to $1,000
-Repeat violations require a formal complaint
Disciplinary process. Step 1 complaint
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Disciplinary process. Step 2 investigation
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Disciplinary process. Step 3 Probable cause panel
-Report is forwarded to FREC probable cause panel.
-Panel consists of 2 current FREC members.
-Panel can dismiss the case or issue a formal complaint.
-All findings are confidential until 10days after probable cause is found.
Disciplinary process. Step 4 Administrative complaint
-Formal complaint is filed against licensee
-Licensee has 20 days to respond to charges
-Licensee doesn't respond, FREC holds hearing anyway.
Disciplinary process. Step 5
Formal/Informal
Hearing
-informal hearing, licensee doesn't dispute facts
-Presents testimony to FREC to explain
-Formal hearing, Licensee disputes facts
-Hearing conducted by an Administrative Law Judge
-Administrative Law Judge makes recommend order to FREC
Disciplinary process. Step 6 Final Order
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Disciplinary process. Step 7 Appeal
-Licensee disputes final order of FREC -Files appeal with District Court of Appeals within 30 days
-Licensee may continue to practice if a stay is granted
Summary suspension
*Complaint is filed against licensee
*licensees actions pose an immediate serious danger to the public
*license is immediately suspended
Real estate recovery fund
F.S.475.482
reimburse members of the public who have lost money as a result of fraudulent actions of licensees.
public must file a civil suit first against licensee and receive judgment.
if licensees assets are in sufficient to satisfy judgment.
public ma
Real estate recovery fund award awards
*Single judgment $50,000 Max
*Multiple judgments against one licensee 150,000
License is automatically suspended upon payment from the fraud in licensee's name
License is not reinstated until fine is repaid with interest
Real estate recovery fund maintenance
F.S 475.482
-Monies are collected from fees and fines from licensees
-Fund reaches $1,000,000 collections of fees is discontinued
-Fee collection begins when fund falls below $500,000.
Real estate recovery fund licensee eligibility
F.S. 475.483
-Licensee act in capacity of buyer or seller only
-Loses money as a result of fraudulent actions of another licensee
-Is eligible to collect the same as public
Real estate recovery fund broker eligibility
-F.S. 475.482
-Monies are collected from fees and fines from licensees
-Fund reaches $1,000,000 collections of fees is discontinued
-Fee collection begins when fund falls below $500,000
Filing false documents
F.S. 475.25
A broker may not encumber real property unless it is expressively permitted by contractual agreement
Failure to account
A licensee is unable or unwilling to produce funds held in trust for another at the appropriate time
Conspiracy
Two or more licensees acting together to defraud a third-party
Concealment
Failure to disclose information to a party
Misrepresentation
Misstatement or omission of facts
Lotteries
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Opinion of title
F.S. 475.25
A licensee cannot render any opinion as to whether the title to property being sold is good or merchantable. The licensee is directed by statue to advise a prospective purchase to consult his/her attorney as to the condition of title
Properties with liens
If known, licensees must disclose the existence of any and all liens encumbering a property.
Civil rights acts of 1866
Prohibits discrimination on the basis of race
Federal fair housing act
(civil rights act of 1968)
-Expanded the civil rights act of 1866
-Protects against discrimination of 7 classes
Family status, race, sex, handicap, color, religion and nationality
Civil rights act of 1968
Exemptions
-Sale or rental of one 4unit family housing
-When the owner lives in the property
-Does not employ a real estate company
-Doesn't use discriminatory advertising
-Cannot discriminate on the basis of race
Block-busting
Inducing owners to list or sell based on the neighborhood changes due to an influx of one of the seven protected classes in the Federal housing act.
Steering
Directing individuals into or away from a neighborhood based on the seven protected classes in the Federal housing act
Redlining
Linders refusing to approve loans based on certain geographical areas, age of the property, income levels of residence, or racial composition.
Housing urban development
HUD poster
The fair housing act requires brokers to display an "equal housing opportunity" poster in all places of business including model homes in subdivisions if business is conducted there
Americans With Disabilities Act ADA
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Stigmatized property
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Lease
-Legal interest in property but not ownership
-Lessor-landlord
-Lessee-tenant
-Lease can be oral or written
-Leases in excess of 1 year must be in writing to be enforceable in court -statute of frauds
Security deposit and advanced rents
F.S. 83.49
-Landlord chooses how to hold a security
-Must notify the tenant within 30 days of receiving deposit
-Interest or non-interest-bearing account in Florida baking institution
-Post a surety bond with the clerk of Circuit Court's
Return of security deposit
F.S. 83.49
-15 days to return after tenant vacates if there is no claim for damages
-30 days to notify tenant after tenant vacates is making a claim for damages
-Tenant must of object within 15 days or landlord may deduct damages and return balance
-Depos
Landlord access
FS. 83.53
-12 hours notice prior to entering for repairs
-Normal repairs between 7:30 AM to 8 PM
-May enter outside these times with tenants permission
-May enter without notice to protect or preserve the premises
Landlord obligation
F.S. 83.51
Maintain property in compliance with applicable building, housing and health codes
Tenants obligation
F.S. 83.53
-Keep promises clean and sanitary
-Don't destroy, deface, damage and impair or remove any part of promises
-Do not disturb neighbors or constitute a breach of the peace
Failure to pay rent
F.S. 83.56
-Tenant fails to pay rent when due
-Landlord must make written demand for rent
-Tenant fails to pay for 3 business days after notice
-Landlord may terminate lease