Which one of the following individuals would be qualified to serve on a probable cause panel?

Prosecution Services

Attorneys review the investigative report to recommend a course of action which may include:

• Emergency Order
• Expert Review
• Closing Order
• Administrative Complaint

A Quick Guide: Emergency Orders

Probable Cause Panel (PCP) - The PCP is a panel of two or three board members, usually one or two licensed health care professionals and a consumer member.

A Quick Guide: Probable Cause Panels

• A Closing Order is recommended if the investigation and/or the expert opinion does not support the allegation(s). The subject and the complainant are notified of the results. The complainant may appeal the decision of the probable cause panel within sixty (60) days of notification by providing additional information for consideration.

  Note: Cases closed with no finding of probable cause are generally confidential and are not available through a public records request.

• An Administrative Complaint (AC) is recommended when the investigation and/or the expert opinion supports the allegation(s). The subject is entitled to a copy of the complete case prior to the probable cause panel meeting.
• 
  When an AC is filed with the Department of Health’s Agency Clerk, the subject has the right to choose one of the following:
• Hearings Involving Disputed Issues of Material Fact - The subject disputes the facts in the Administrative Complaint and elects to have a hearing before the Division of Administrative Hearings (DOAH). If this occurs, all parties may be asked to testify.
• Consent/Stipulation Agreement - The subject enters into an agreement to be presented before the board or department. Terms of this agreement may impose penalties negotiated between the subject or the subject’s attorney and the department’s attorney.
• Hearings Not Involving Disputed Issues of Material Fact - The subject of the complaint does not dispute the facts in the Administrative Complaint. The subject elects to be heard before the professional board or department. At that time, the subject will be permitted to give oral and/or written evidence in mitigation or in opposition to the agency action
• Voluntary Relinquishment of License - The subject of the Administrative Complaint elects to surrender the license and to cease practice.
• 
  Final Action before the board or department - Cases (includes all of the above, as well as cases where the subject has failed to respond) are presented before the professional board or department for final agency action. The subject may be required to appear before the board or department. The complainant is notified of the date and location where the case will be heard and may attend.

  If the subject is entitled to and appeals the final decision, the PSU attorney defends the final order before the appropriate appellate court.

Suspension of an individual's license is a permanent penalty.

True False

The statement is FALSE. Suspension of an individual's license is a temporary penalty. The maximum period for which the Florida Real Estate Commission may suspend a license is ten years.

The spouse of a judgment debtor is qualified to make a claim from the Real Estate Recovery Fund.

True False

The statement is FALSE. The spouse of a judgment debtor is not qualified to make a claim for recovery from the fund.

The FREC may issue a summary suspension when a licensee's actions endanger the public.

True False

The statement is FALSE. A summary suspension (or emergency suspension) must be issued by the DBPR Secretary or a legally appointed designee of the Secretary.

A licensee who receives a notice of noncompliance for a minor violation must take action to correct the violation within 15 days.

True False

The statement is TRUE. A licensee has 15 days to take action to correct a violation stipulated in a notice of noncompliance. Failure to take corrective action may result in a fine or other disciplinary penalties.

Members of the Florida Real Estate Commission determine and issue the final order in each disciplinary case.

True False

The statement is TRUE. The Commission (except for the members who served of Probable Cause) determine and issue the final order in each disciplinary case. The Commission members may accept, reject, or modify the conclusions of law and the interpretation of administrative rules in the administrative law judge's recommended order.

Most violations of Florida Statue 475 are legally misdemeanors of the second degree.

True False

The statement is TRUE. A violation of Florida Statue 475 is a misdemeanor of the second degree. A second degree misdemeanor is punishable by a fine of up to $500 and/or by a jail sentence of not more than 60 days. There is one violation of real estate license law that is a first-degree misdemeanor; failing to provide accurate and current rental information for a fee.

The maximum payment from the recovery fund for claims based on judgments against a licensed real estate broker may not exceed $150,000.

True False

The statement is TRUE. Payment for claims based on judgments against one broker or sales associate may not exceed, in total, $150,000.

Examples of moral turpitude include embezzlement and crimes of larceny.

True False

The statement is TRUE. Moral turpitude is defined as a vile act; conduct contrary to honesty, good morals, justice, or accepted custom. Embezzlement and crimes of larceny fall under this definition.

Appealing a final order stops the enforcement of any penalty stipulated in that order.

True False

The statement is 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.

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

True False

The statement is FALSE. All imprisonment penalties must be obtained in a court of law because the Commission lacks the authority to assess such penalties.

The FREC imposes an administrative penalty on a broker for violation of license law. Within how many days after the final order is filed does the order become effective?

A) 30 B) 90 C) 60 D) 15

The answer is 30. The final order becomes effective 30 days after it has been entered.

What is the usual action of the Commission if a real estate licensee has for the second time violated the Uniform Standards of Professional Appraisal Practice as defined in Florida license law? A) $500 citation B) $1,000 to $5,000 administrative fine C) $1,000 to $5,000 administrative fine and suspension to revocation D) Reprimand

The answer is $1,000 TO $5,000 ADMINISTRATIVE FINE AND SUSPENSION TO REVOCATION. Rule 61J2-24.001, Florida Administrative Code, sets out the disciplinary guidelines that may be imposed by the Commission. If a real estate licensee violates the Uniform Standards of Professional Appraisal Practice for the second time, the Commission may impose a penalty of $1,000 to $5,000 administrative fine and suspension to revocation.

A warning for an initial offense that allows a licensee to correct the minor infraction without consequence is known as a(n)

A) letter of reprimand. B) administrative fine. C) notice of noncompliance. D) citation.

The answer is NOTICE OF NONCOMPLIANCE. A notice of noncompliance is a warning for a minor violation of an initial offense that allows a licensee 15 days to correct the minor infraction without consequence.

Which violation is a third-degree felony for a real estate licensee?

A) Individual performs real estate services for compensation without a real estate license B) False advertising C) Broker fails to register a trade with the Commission D) Sales associate fails to deliver an earnest money deposit to her broker before the end of the next business day

The answer is INDIVIDUAL PERFORMS REAL ESTATE SERVICES FOR COMPENSATION WITHOUT A REAL ESTATE LICENSE. It is a third-degree felony for an individual to perform real estate services for compensation without a real estate license.

Who renders a determination as to whether probable cause exists?

A) DBPR investigator B) Two-FREC-member panel C) Seven-member Commission D) Administrative law judge

The answer is TWO-FREC-MEMBER PANEL. The probable-cause panel is composed of two members of the FREC. The probable-cause panel's sole responsibility is to determine whether probable cause exists.

A licensee has how many days to file an appeal once the final order has been issued?

A) 30 B) 60 C) 90 D) 45

The answer is 30. The licensee-respondent may challenge the final order within 30 days by filing a petition for judicial review.

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 be

A) legally sufficient. B) evidence. C) prima facie evidence. D) formal.

The answer is LEGALLY SUFFICIENT. A complaint is legally sufficient if it contains facts indicating that a violation of Florida statute, or DBPR or FREC rule, has occurred.

A case is heard before an administrative law judge in a formal hearing. In such cases, who renders the final order?

A) DBPR secretary B) Attorney general C) FREC (with members who served on the probable-cause panel excused) D) Administrative law judge

The answer is 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.

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 contract B) Commingling C) Failure to account for and deliver D) Moral turpitude

The answer is FAILURE TO ACCOUNT FOR AND DELIVER. Failure to account for and deliver is the act of failing to pay money to a person entitled to receive it.

A broker places an earnest money deposit into the broker's business operating account. The broker can be disciplined for which violation?

A) Misrepresentation B) Concealment C) Commingling D) Conversion

The answer is COMMINGLING. To mix the money or other personal property of a buyer or seller with a broker's own money or property, or to combine escrow money with personal or business funds, is commingling.

Another term for a formal complaint is

A) prima facie evidence. B) an administrative complaint. C) a consumer complaint. D) legally sufficient.

The answer is AN ADMINISTRATIVE COMPLAINT. A formal complaint (also referred to as an administrative complaint) is an outline of allegations of facts and charges against the licensee.

Which penalty is NOT an administrative penalty that may be imposed by the FREC? A) Revocation B) Probation C) $5,000 fine for violation of Chapter 455 D) Restitution to the injured party

The answer is RESTITUTION TO THE INJURED PARTY. The FREC does not have the authority to order restitution to an injured party. If the acts of a licensee harm a consumer, the injured party may seek damages in a court of law.

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) $9,300 B) $50,000 C) $10,000 D) $7,000

The answer is $7,000. 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.

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 Recovery Fund. Which expense may NOT be reimbursed from the Fund? A) Broker-defendant's court costs B) Punitive damages C) Plaintiff's attorney's fees D) Broker-defendant's attorney's fees

The answer is PUNITIVE DAMAGES. In all cases, punitive damages, treble damages, and interest may not be recovered from the Real Estate Recovery Fund.

Under Florida Statute 455, the DBPR may impose which penalty for unlicensed practice of real estate?

A) Suspension B) Revocation C) Any of the above penalties may be imposed D) $5,000 fine per count

The answer is $5,000 FINE PER COUNT. Revocation and suspension are penalties that may be imposed against a holder of a real estate license. The DBPR is authorized to issue fines of up to $5,000 per count to a person it finds guilty of unlicensed activity.

The maximum amount that may be collected from the Real Estate Recovery Fund as a result of a single real estate transaction is

A) $150,000. B) $100,000. C) $50,000. D) $25,000.

The answer is $50,000. Payments for claims arising out of the same transaction are limited, in total, to $50,000 or the unsatisfied portion of a judgment claim, whichever is less.

A seller files a complaint against a broker. The broker hires an attorney to represent him in discussions with the DBPR. Which person is the complainant?

A) Seller B) DBPR's representative C) The broker's attorney D) The broker

The answer is SELLER. The complainant is the person who files the complaint.

A sales associate fails to turn over to the broker rental income paid by a tenant. The sales associate spends the money for personal use. Which legal term applies to this situation?

A) Concealment B) Breach C) Conversion D) Fraud

The answer is CONVERSION. Conversion is the unauthorized control or use of another's personal property.

Which complaint may the Florida Department of Business and Professional Regulation Dbpr investigate?

How long does a consumer have to file a complaint against a Florida licensee?

What Florida agency investigates real estate complaints?

What is the role of the prosecution services unit in the Florida Department of Health?