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26 Cards in this Set
- Front
- Back
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Breach of trust |
A breach of trust is the breaking of a promise or obligation, and can be done through action, omission, default, or nonperformance. |
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Moral turpitude |
Moral turpitude is conduct that goes against justice, honesty, good morals, or custom. It can also mean depraved, base behavior. The key element, as decided by courts, is that someone's unpleasant behavior affects their ability to deal with the public in a fair and honest way. |
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Commingling |
Commingling is the illegal act of mixing personal funds with a client’s funds. |
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A sales associate signed a contract in the name of the seller she was representing. The sales associate believed that she knew the seller wanted to sign, and that it was urgent to obtain a signature. The seller did not know the sales associate had signed the contract, and he had not authorized it. Did the sales associate commit a breach of trust? Why or why not? |
This is a breach of trust |
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Broker Bart places some of a client's funds into his personal account. He then uses some of that money to pay for a new air-conditioning unit in his home. Which action is commingling, and which is conversion? |
He commingled when he placed the funds into his personal account. He committed conversion when he use the commingled money to pay for a new air conditioning unit. |
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Innocent misrepresentation occurs when: |
The licensee makes a statement they believe is true, but is actually false. |
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Material Fact |
A material fact is a fact that, if known, could cause someone to take a different course of action or make a different decision regarding the property to be purchased. Examples of material facts: • Leaky roof • Problems with the heating, cooling, or plumbing systems • Age of property and systems • Mold, mildew, lead paint, asbestos, radon, and other environmental hazards • Presence or history of termites or other wood-destroying insects If the buyer knew about any of these, they might change their mind about buying the property. You can be held liable for failing to disclose material facts or defects that you should have been aware of. |
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Misrepresentation |
Misrepresentation is a statement, written or spoken, that is false or misleading. |
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Innocent misrepresentation |
: A licensee makes a statement they believe is true, but is actually false. |
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Negligent misrepresentation: |
A licensee fails to disclose significant property issues due to ignorance. It's when they should have known something or should have done something, but didn't out of sloppiness or carelessness. |
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Fraudulent misrepresentation: |
A licensee intentionally attempts to prevent a buyer from finding out about a material fact. |
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Culpable Negligence |
Culpable negligence is negligent conduct that is not intentional but involves a disregard of the consequences that will likely result. For instance, a broker might be found culpably negligent if they are careless with their supervisory duties. |
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Failure to Account or Deliver |
Failure to account or deliver is the failure to deliver personal property (such as money, legal documents, or commission) to the person entitled to receive it. For instance, a broker who does not pay an earnest money deposit at the title closing could be charged with failure to account or deliver trust funds. |
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What is required for a complaint t to be investigated? |
A complaint will be investigated if it is both filed in writing and legally sufficient. |
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Summary of Deadlines |
• 20 days for subject of complaint to give written response to complaint • 10 days for complaint to be kept confidential after probable cause is found • 30 days for probable-cause panel to make decision after receiving DBPR's report • 21 days for subject of complaint to fill out the Election of Rights form • 14 days of notice to be given to subject of complaint before a hearing • 30 days for final order to become effective after being filed • 30 days from subject's receipt of final order to appeal |
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Mediation |
The DBPR can choose to designate certain violations as appropriate for mediation, which is an informal process conducted by a neutral third party to settle a complaint. Generally, mediation offenses are those complaints where the harm caused by the licensee is economic in nature or can be remedied by the licensee. |
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Settlement stipulation |
If all parties agree to settle, they can enter into a stipulation, which is a settlement between parties as to the facts of the case and the penalty reached. It must be approved by FREC to be effective. FREC will approve or deny the stipulation during one of their meetings. |
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Voluntary Relinquishment |
for Permanent Revocation Another option that avoids the hearing process is voluntary relinquishment for permanent revocation. This means that the subject voluntarily turns in their license and therefore avoids a hearing and other discipline. Permanent revocation means they can never practice real estate again. |
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subpoena |
a written order commanding a person to appear in court to give testimony or produce records, under penalty for failure |
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Civil Penalties |
A civil suit can be undertaken if: • An unlicensed person practices real estate. The civil penalty for the unlicensed practice of real estate ranges from $500 to $5,000. • A licensee commits fraud in a real estate transaction. • An injured individual wants to recover the money they paid to a licensee. • An injured individual wants to deny commission to a person not entitled to that commission. Remember, FREC can't impose restitution to an injured party. Therefore, when it comes to denial and recovery of compensation, a civil suit is the way to go! |
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citation |
issued for a minor violation and can be disputed by the subject of the complaint; fines range from $100 to $500 |
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notice of noncompliance |
issued by the DBPR for a first-time, minor violation by a licensee |
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Compensatory Damages |
The Recovery Fund only reimburses compensatory damages, which are the actual monetary damages awarded to the claimant. It does NOT include attorney's fees, court costs, punitive damages, or treble* damages. |
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Suspension |
If the Recovery Fund pays compensatory damages to a claimant, the offending licensee will automatically have their license suspended. Their license is suspended until they can repay the amount paid by the Recovery Fund, plus interest. |
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What is the maximum amount the recovery fund can pay out from claims arising from one transaction? |
$50,000 |
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What is the maximum amount the recovery fund can pay out for claims against one licensee? |
$150,000 |
