FL Real Estate Unit 6 Flashcards

FL Real Estate Unit 6 Flashcards Failing to provide accurate and current rental information for a fee is a misdemeanor of the first degree, punishable in a court of law by a fine of up to $1,000 and/or by imprisonment of up to one year.Misdemeanors of the second degree are punishable by a fine of up to $500 and/or by imprisonment of up to 60 days.A claim will be denied if the offending licensee had an expired license at the time of the transaction.

TRUE Which violation is a third-degree felony?A)False advertisingB)Broker fails to register a trade with the CommissionC)Sales associate fails to deliver an earnest money deposit to her broker before the end of the next business dayD)Individual performs real estate services for compensation without a real estate license D max period a license can be suspended10 yrs ($5000 fine) 3rd degree felony5 yrs The maximum amount that may be collected from the Real Estate Recovery Fund as a result of a single real estate transaction isA)$50,000.B)$25,000.C)$150,000.D)$100,000.A Under Florida Statute 455, which penalty may be imposed on an individual for unlicensed practice of real estate?A)SuspensionB)$5,000 fine per countC)RevocationD)Any of these B A licensee who receives a notice of noncompliance for a minor violation must take action to correct the violation within 15 days.

TRUE 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)Breach of contractB)Moral turpitudeC)Failure to account for and deliverD)Commingling C 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.# days to correct an infraction on a notice of noncompliance 15 days Falsifying a license application is a second-degree misdemeanor.FALSE = It is a third-degree felony to falsify a license application.# days after which a final order becomes effective30 days Another term for a formal complaint isA)an administrative complaint.B)a consumer complaint.C)legally sufficient.D)prima facie evidence A

An administrative fine of up to $5,000 may be issued for a violation of Chapters 455 and 475, F.S.

TRUE A complaint is legally sufficient if it contains facts indicating that a violation of Florida statute has occurred.

TRUE The Florida Real Estate Commission possesses the authority to sentence a licensee to imprisonment.

FALSE time period to request reimbursement from the recovery fund

• yrs

2nd degree misdemeanor incarceration60 days ($500fine) 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)$7,000B)$10,000C)$9,300D)$50,000 A - The buyer can recover the amount of the judgment up to $50,000 or the unpaid amount of the judgment, whichever is less. The buyer cannot be reimbursed from the recovery fund for court costs or attorney's fees.Unlicensed practice of real estate for compensation and falsifying an application are felonies of the third degree.The penalty is a fine of up to $5,000 and/or up to five years in jail per offense.Individuals can be reimbursed from the Real Estate Recovery Fund for monetary damages as a result of license law violations by a licensee. Claims are limited to $50,000 per transaction or the unsatisfied portion of a judgment claim, whichever is less, and no more than $150,000 against one licensee involving multiple transactions. The license is automatically suspended upon payment from the fund until the fund is reimbursed (EDO exception).Probable-cause proceedings are open to the public.FALSE Examples of moral turpitude include embezzlement and crimes of larceny.

TRUE If a license is issued by mistake the license will be revoked with prejudice.

FALSE 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 beA)prima facie evidence.B)formal.C)evidence.D)legally sufficient.D

7 steps to the compliant process:1) A complaint (an alleged

violation of a law or rule) is filed with the DBPR.2) INVESTIGATEIf the complaint is legally sufficient, the DBPR conducts an investigation and notifies the licensee-respondent. The complaint and the information obtained during the investigation are kept confidential until 10 days after probable cause has been found to exist. The DBPR's investigative report is forwarded to the probable-cause panel. In rare situations deemed to be too

serious to allow the licensee to continue to practice real estate while the complaint process proceeds, the DBPR secretary may issue a summary (emergency) suspension.3) PROBABLE CAUSEThe probable-cause panel consists of two FREC members. The probable-cause panel determines whether probable cause exists.4) FORMAL ADMINISTRATIVE COMPLAINTIf probable cause is found, the DBPR issues a formal (administrative) complaint. An Election of Rights is mailed with the complaint to the licensee. The licensee has 21 days to (1) not dispute the allegations of fact and request an informal hearing, (2) dispute the allegations of fact and request a formal hearing, or (3) not dispute the allegations of fact and waive the right to be heard. The licensee-respondent may enter into a stipulation (an agreement as to the facts of the case and the penalty reached between the attorneys for the DRE and the licensee).5) DECISION - IMPOSE PENALTY INFORMAL HEARINGIf there are no disputed facts, the Commission (probable-cause panel members are excused) decides the case and imposes the penalty in an informal hearing held during a regular FREC meeting. If the licensee-respondent requests a formal hearing or if the respondent disputes the allegations, the case is heard by a Florida administrative law judge in a formal hearing. The administrative law judge prepares a recommended order.6) FINAL ORDERThe FREC imposes the final order (members of the probable-cause panel do not participate).The final order becomes effective 30 days after it has been entered.7) APPEALThe licensee-respondent may appeal the final order.The licensee-respondent may appeal the final order.A case is heard before an administrative law judge in a formal hearing. In such cases, who renders the final order?A)FREC (with members who served on the probable-cause panel excused)B)Attorney generalC)Administrative law judgeD)DBPR secretary A = FREC (with members who served on the probable-cause panel excused). The FREC (with the members who served on the probable-cause panel excused) issues the final order. In matters heard by an administrative law judge in a formal hearing, the FREC reviews and considers the administrative law judge's findings and recommended order before issuing its final order.

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)Broker-defendant's attorney's feesB)Broker-defendant's court costsC)Punitive damagesD)Plaintiff's attorney's fees C The probable-cause panel is composed of two current professional members of the Commission.FALSE = One of the panel members must be a current FREC member. The other member may be a former commissioner. At least one panel member must be either a current or former professional (not consumer) member.A broker placed security deposits from tenants into the business operating account. This is an example of commingling funds.

TRUE A warning for an initial offense that allows a licensee to correct the minor infraction without consequence is calledA)a citation.B)a letter of reprimand.C)an administrative fine.D)a notice of noncompliance D Which penalty is NOT an administrative penalty that may be imposed by the FREC?A)Restitution to the injured partyB)RevocationC)$5,000 fine for violation of Chapter 455D)Probation A Unlicensed activity is a third-degree felony. TRUE Who renders a determination as to whether probable cause exists?A)Administrative law judgeB)DBPR investigatorC)Two-FREC-member panelD)Seven-member Commission C 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.# days a licensee has to accept/file a written objection to a citation 30 days 1st degree misdemeanor incarceration1 yr ($1000 fine) Appealing a final order stops the enforcement of any penalty stipulated in that order.FALSE = Appealing an order does not stop enforcement of the penalty. If the penalty would suspend or revoke a license, however, the court will normally grant supersedes (stay suspension) as a matter or right on conditions considered reasonable.A subpoena is a legal document commanding an individual to appear at a certain time and place to give testimony.

TRUE time period to file an appeal30 days