Section 6 Review

Question 1

The 7 Steps in the Disciplinary Process of a licensee implemented by FREC

Answer 1

Complaint Filed
 Investigation
Probable Cause (if any found)
Formal Complaint (Administrative complaint)
Informal or Formal Hearing
Final Order
Judicial Review

Question 2

How long does a licensee have to respond to a notification that a complaint has been filed against them?

Answer 2

20 days

Question 3

If it is the licensee’s first offence and considered a minor violation the department may issue____ to the licensee as a warning?

Answer 3

a notice of noncompliance

Question 4

The probable cause panel is made up of two FREC members. One must be__________.

Answer 4

a current real estate licensee

Question 5

Decisions of the probable cause panel become public ___ days after probable cause has been found.

Answer 5

10

Question 6

If probable cause is found and the offense is minor, a _________ may be issued.

Answer 6

letter of guidance

Question 7

If probable cause is found for more serious potential violations ________________ is issued?

Answer 7

Formal Complaint

Question 8

Licensees have what 3 choices in regards to Election of Rights if a formal complaint is filed?

Answer 8

Not to dispute & waive the right to be heard
Not to dispute & request an informal hearing
Dispute & request a formal hearing

Question 9

Stipulations are negotiated between who?

Answer 9

the licensee or their attorney and the DRE attorney

Question 10

Who holds the Informal hearings?

Answer 10

FREC

Question 11

Who holds the formal hearings when a licensee disputes the charges against them?

Answer 11

Administrative Law Judge

Question 12

Once the Administrative Law Judge issues the Recommended Order, it is reviewed by FREC who then issues ________

Answer 12

the Final Order

Question 13

Penalties for being found guilty of complaints made against you can include:

Answer 13

Fines –Up to $5,000 for each offense
License Suspension – Up to 10 years
License Revocation –Permanent loss of the ability to practice real estate in the state of Florida.

Question 14

A licensee has __ days to appeal a Final Order by filing a petition for judicial review or the Final Order becomes effective.

Answer 14

30

Question 15

There are three types of penalties that can be imposed for violation of license law

Answer 15

Administrative penalties
Civil penalties
Criminal penalties

Question 16

The DBPR/DRE has the authority to issue citations for minor violations. The licensee has __ days to accept or reject the penalty. The penalty involved with a citation are fines from $___ to $___ per infraction and a possible education component.

Answer 16

30 days

$100 to $500

Question 17

Criminal penalties related to real estate

Answer 17

3rd-degree felony = up to $5k fine up to 5 yrs in prison
1st-degree misdemeanor = $1k fine up to 1 yr in prison
2nd-degree misdemeanor = $500 fine up to 60 days in jail

Question 18

The unlicensed practice of real estate is what level of crime?

Answer 18

Third-Degree Felony

Question 19

Selling a rental list that is inaccurate is what level of crime?

Answer 19

First-Degree Misdemeanor

Question 20

Most violations are what level of crime?

Answer 20

Second-Degree Misdemeanor

Question 21

What is in place to protect members of the public from financial damage in a RE transaction

Answer 21

The Florida Real Estate Recovery Fund

Question 22

How much can a consumer collect from the FL RE Recovery Fund per single case of misconduct?

Answer 22

up to $50,000.00

Question 23

How much can be collected from the FL RE Recovery Fund per Licensee?

Answer 23

Up to $150,000.00

Question 24

What kinds of costs can be recovered from the FL RE Recovery Fund?

Answer 24

only actual amount lost plus Court costs and attorney fees

Question 25

A payout from the recovery fund trigger what action to be taken against the licensee?

Answer 25

immediate suspension until the licensee has paid back the amount paid by the fund, plus interest.

Question 26

what is breach of trust?

Answer 26

When someone in a position of trust, acts against the terms of the agreement to the detriment of the principal.

Question 27

When The DBPR/DRE issues a citation for minor violations. The licensee has ___ days to accept or reject the penalty

Answer 27

30 Days

Question 28

The penalty cost involved with a citation from DBPR/DRE are fines from $___ to $___ per infraction. Additional education could also be placed on the licensee. See Administrative Code 61J2-24.02 for a complete list under Citation Authority.

Answer 28

$100 to $500

Question 29

what is commingle?

Answer 29

Mixing trust funds from another with the agent’s personal or business funds.

Question 30

what is conversion of a client's funds?

Answer 30

Using clients' trust funds for your own use.

Question 31

what is culpable negligence

Answer 31

Failing to use the same care a reasonable person would exercise in a given situation.

Question 32

what is Failure to account for and deliver

Answer 32

Failing to produce funds held in trust

Question 33

when is a formal complaint (Administrative complaint) filed?

Answer 33

When probable cause is found

Question 34

What does the DBPR do after filing a formal complaint against a licensee?

Answer 34

Outlines the facts and charges | sends a copy to the licensee and their broker.

Question 35

what is fraud?

Answer 35

Deceitful practice with the intent to deprive another of his right, or cause possible harm.

Question 36

When is a complaint against a licensee legally sufficient?

Answer 36

if it provides accurate evidence admissible in court and sufficient to support a decision or verdict that demonstrate a violation of Florida Statutes Chapters 120, 455, 475, and 61J2 of the Florida Administrative Code.

Question 37

what is the purpose of mediation?

Answer 37

To assist the complainant and subject of the complaint to reach a mutually acceptable resolution

Question 38

Who appoints a mediator when there is a legally sufficient complaint?

Answer 38

DBPR

Question 39

What situation typically leads to a licensee being charged with misrepresentation and fraud?

Answer 39

When they fail to disclose material defects that may effect the value of the property

Question 40

what is moral turpitude?

Answer 40

dishonest and immoral conduct that is considered contrary to community standards of justice, honesty, or good morals

Question 41

How long does a broker have to correct the licensee when a notice of noncompliance has been sent

Answer 41

15 days

Question 42

what is probable cause?

Answer 42

Factual and evidential reasons to believe that a crime may have been committed and should be prosecuted.

Question 43

When is a formal hearing required?

Answer 43

if a licensee is disputing the facts of the case.

Question 44

what is a stipulation?

Answer 44

when a Licensee-respondent meets with a DRE attorney prior to a hearing to discuss a settlement /agreement as to the facts of the case and the penalty reached.

Question 45

What happens if someone receives a subpoena

Answer 45

They are ordered to appear in court in a legal case.

Question 46

Emergency suspension order (Summary suspension order)

Answer 46

means a licensee may not practice real estate until their case is resolved.

Question 47

voluntary relinquishment for permanent revocation

Answer 47

A licensee that has had a complaint filed against him or her can voluntarily surrender his or her real estate license. This is a permanent loss of the license meaning the licensee may never hold a real estate license in the state of Florida again. (Not the same thing as “Voluntary Relinquishment.)

Question 48

If the health, safety, or welfare of the public is in any way in danger due to a licensee who is under investigation the DBPR may issue what?

Answer 48

Emergency suspension order (Summary suspension order)

Question 49

can a licensee make a claim for an unpaid commission against the recovery fund?

Answer 49

No, they would have to go after the broker who didn't pay

Question 50

a complaint must be ___________

Answer 50

in writing

Question 51

FREC has the authority to ______ a license application, refuse to ______ a license, suspend a license up to __ years, revoke a license, impose an administrative fine, issue a reprimand.

Answer 51

deny renew 10

Question 52

How is the real estate recovery fund funded?

Answer 52

fee added to the license fee of new and renewal licenses & fines imposed and collected by the FREC.