Chapter Five

Question 1

What are the penalties imposed by the DBPR?

Answer 1

• Notice of no compliance.
• citation after 15 day noncompliance.
• Other penalties if violation not listed.

Question 2

What are the administrative penalties imposed by the frec?

Answer 2

• Deny license application
• Letter of reprimand
• Probation
• $5,000 fine for violating ch 475 & 455
• Up to 10 years revocation
• Revocation w/ Prejudice

Question 3

What is a real estate limited partnership.

Answer 3

• Register with the DPBR
• General partners who engage in RE transactions must be licensed brokers
• All other parners must be registered with the DPBR
• Associates may not be partners, but may be limited partners, like stock holders of a corperation.
• limited partners do not register with the DPBR

Question 4

What business entities that may not register brokerages?

Answer 4

• Sole Corporations (Churches)
• Joint ventures (unless between brokers)
• business trust
• cooperative associations
• unincorperated associations

Question 5

What is a recovery fund?

Answer 5

• An acount to reinburce entity judged to have suffered $ damages at licensee hands.
• licensee must have active license at time of acount.
• limited to to $50,000 transactions
• $150,00 max with license.
• Fees collected when funds drop below $500,000 until $1mil
• licensees suspended until fund repaid + %
• Broker complies with EDO & sued, may be repaid from the recovery fund.

Question 6

What are the seven steps to complaint process?
(quasi-judicial procedure)

Answer 6

(1) Complaint filed.
(2) Investigation.
(3) Determination of probable cause found.
(4) Formal complaint filed if probable cause is found.
(5) Informal hearing or formal hearing.
(6) Final order issued.
(7) Judicial review (appeal) of final order.

Question 7

Real estate brokerage general partnership.

Answer 7

• Must register with the DBPR
• 1+ partners must be broker
• All partners must register with DBPR for identification.
• Associates may not be partners.
• In case of death 14 days to replace broker.
• Responsibility of all parties for correct legality of licenses.

Question 8

Ostensible Partnership

Answer 8

• Fraudulent & Deceitful if public is deceived into thinking a partnership exists.
• Parties liable for each others debts & totes
• Broker in same office building must have separate signs, phone number, business names, cards & letterhead.