Florida Real Estate Chapter 6 Flashcards

Florida Real Estate Chapter 6 Flashcards Concealment(fraudulent activities)When a broker fails to disclose information to a party, to whom the broker has a duty.Using Lotteries (fraudulent activities)A broker who uses lotteries or trading schemes that involve the selling of certificated or chances to induce any person to buy real estate is guilty of fraud.Denial of licenseIf an individual is deemed by the Department to lack character or competence to deal with the public safety.Conversion (fraudulent activities)When a broker uses the funds or other property that belongs to another for his or her personal or business use Culpable negligence (fraudulent activities) If a broker operates in a reckless, careless, and excessively negligent manner. Can be held legally accountable. i.e A sales associate who forgets to collect from a escrow deposit, as specified in contract.Properties with liens (fraudulent activities) If a mortgage or other liens exist against property, the broker must inform a prospective buyer of such conditions prior to the payment of any portion of the sales price.Promise to resell (fraudulent activities) When the broker makes a promise to resell or repurchase property at a future date. The broker must abide by the promise or is guilty of fraud.Rendering an opinion of title (fraudulent activities)A broker cannot render (give) an oral or written opinion that the title to the property being sold is good or merchantable.Revocation (R of Penalties)The maximun penalty for violation F.S. 475Permanently removes the license. Along with a $5,000 fine for misrepresentation, concealment, and obtaining a license by fraud.Conspiracy (fraudulent activities)When a broker forms a scheme or design with another person with the intent to defraud a third party.F.S. 475 1st Degree MisdemeanorsViolating the requirements concerning rental lists, information, and contracts is punishable by a fine of up to $1000 and/or imprisonment not to exceed one year F.S. 475 3rd Degree FeloniesCriminal court, criminal fine of up to $5,000 and/or imprisonment of up to 5 years. i.e.Acting as a broker or sales associate without valid and current license.Knowingly giving false or misleading info while applying for or obtaining a license.Stealing or reproducing an exam administered by the Department Suspension (R of Penalties)A temporary penalty. The Commission can suspend the license of a licensee for the maximum period of 10 years.Breach of Trust (fraudulent activities)When a broker violates their duties to the principal in a agency relationship. Any action that puts the brokers self interests ahead of the principals interests.

Moral Turpitude (fraudulent activities)Conduct that is considered contrary to standards of justice, honesty, or good morals. "the idea of inherent baseness of depravity in the private social relations or duties owed by man to man or by man to society." Probation (R of Penalties)A conditional arrangement in which the Commission allows a licensee to continue to practice real estate services if the licensee completes specified requirements. 90 days Reprimand (R of Penalties)The minimum penalty. Criticism from the Commission that notes the conduct is not satisfactory.F.S. 475 2nd Degree MisdemeanorsCriminal fine of up to $500 and/0r imprisonment for up to 60 days. i.e False or misleading advertising.Any sales associate who collects money in connection of any real estate brokerage transaction without the express consent of the employer.False or misleading advertising (fraudulent activities)No one may disseminate any false or misleading information by any means for the purpose of offerings a sale, lease, or rent any real estate located in this state. F.S.

475.42

Failure to account (fraudulent activities) A form of conversion that occurs when a broker is required to produce money or property that belongs to another, and either cannot or will not produce the money or property.Misrepresentation (fraudulent activities) The misstatement or omission of facts. Can lead to fraud if statements are intentional and relied upon.Filing false documents (fraudulent activities) Occurs if a broker clouds the title to real estate by filing false, void, or unauthorized documents in the public record such as liens, contracts, or deeds. The broker is guilty of fraud F.S. 475.42