STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

GEORGE E. ENGLISH, )

FLORIDA REAL ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 76-403

) P.D. NO. 2720 UNITED REAL ESTATE ASSOCIATION, INC., )

STUART R. SNIVELY, CLARK ROBERTS, ) JUANITA ROBBINS, YVONNE YOUNT, AND ) VIVIAN R. WHITNEY, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice, a hearing was held in the above styled cause at the Florida Real Estate Executive Offices, 2699 Lee Road, Winter Park, Florida on October 20, 1976 at 9:12 a.m. before Delphene C. Strickland, assigned Hearing Officer of the Division of Administrative Hearings, Department of Administration.

APPEARANCES

For Petitioner: S. Ralph Fetner, Jr., Esquire 2699 Lee Road

Winter Park, Florida

For Defendants: Albert P. Schwarz, Esquire

255 Royal Ponciana Way Palm Beach, Florida 33480

ISSUE

Whether the Defendants have been guilty of violating Chapter 475, Florida Statutes, and the rules and regulations promulgated by the Florida Real Estate Commission and should have their corporate and personal licenses annulled, suspended or revoked.

FINDINGS OF FACT

1. United Real Estate Association, Inc. holds License Number 0134096 as a corporate real estate broker operating out of the principle office and branch offices in various cities throughout the State of Florida. The five (5) Defendants, Stuart R. Snively, Lic. No. 0083024, Clark Roberts, Lic. No. 0074117, Juanita M. Robbins, Lic. No. 0145920, Yvonne Yount, Lic. No. 0099456 and Vivian R. Whitney, Lic. No. 0156013, were listed as brokers for and officers of the corporation.

2. Mrs. Elizabeth C. Dyer was employed by the Defendant, United, at its Winter Park office from March 1, 1975 through May 5, 1975. During the time of her employment, two checks were returned to her - one for "insufficient funds" and one for "account closed". At the time of discharge, United owed Mrs. Dyer money for work done. The Defendant Juanita Robbins later paid Mrs. Dyer all monies owed her by United.

   
   

3. United failed to refund a fee to Mr. and Mrs. Browne after promising a refund due customers because of unsatisfactory service.

   
   

4. During the time Mrs. Dyer was employed by United, part of her duties was to call owners of properties to obtain rental listings. Other employees also worked for United obtaining and servicing the rental business. No personal inspection was made of many of the properties on which United took rental listings, nor did the employees of United accompany those who were charged a fee to examine the rental list to the listed property. Properties were listed by United which were not properly described thereby misleading those who paid a fee to obtain a list of rental properties. There were many people who were dissatisfied with the services rendered by United and their rental listings. Houses were listed at a certain rental fee and after customers paid their $25 to

   $30 for the use of the rental listings, houses as advertised could not be located. The Defendant United Real Estate Association, Inc., leased furniture from the American Furniture Company and failed to pay the amount owed.

   Ultimately the bonding company paid a portion of the $3,509 owed by United. Part of the amount owed was for rent and part was for furniture that was not returned. Monies are still owed by several of the offices owned by United.

   
   

5. Thomas J. Capobianco was the manager of United Real Estate Association and signed rental agreements as secretary/treasurer of the corporation. (As the date of this hearing, Mr. Capobianco had bought five of the offices from United.) The office in which Mr. Capobianco was employed in Winter Park, Florida and supervised by Defendant Stuart R. Snively, was closed in March or April of 1975. When United closed its office, it owed money to the Sentinel Star newspaper and the American Furniture Rentals.

   
   

6. The Orlando Sentinel Star, through a court proceeding, was awarded a sum exceeding $8,000, in a proceeding brought by the Sentinel Star against United Real Estate Association, Inc. for monies due.

   
   

7. At one time the Star refused to accept advertisement from United for the reason that the advertising was not accurate and there were complaints from the readers. Some of the complaints were verbal and some were written to the publisher of the Sentinel Star or to the Better Business Bureau of Orlando. Misrepresentations of the property were the majority of the complaints and most were directed at the Winter Park office.

   
   

8. The Defendant Juanita Robbins was affiliated with the corporation Defendant United Real Estate Association, Inc. in March of 1975 and severed her relationship in September 1975.

   
   

9. United had offices on the east coast, an office in Winter Park and offices in Bradenton, St. Petersburg, and Sarasota. Defendant Robbins was responsible for the St. Petersburg, Sarasota and Bradenton offices but exercised supervisory direction only over the office in the Tampa Bay Area. Defendant Stuart Snively was in charge of the office of United in Winter Park. All of the defendants were listed as brokers of each office. The complaint against United is mainly a complaint about the Winter Park office operated by Mr. Snively. No

   trust or escrow bank accounts were maintained as required by Section 475.25, Florida Statutes, and Chapter 21V.14, F.A.C., for the deposit of fees collected by United at any of the offices.

   
   

   Insufficient evidence was adduced to prove the employment of a non-registered salesman by United.

   
   

   CONCLUSIONS OF LAW

   
   

10. Section 475.25 Grounds for revocation or suspension. Florida Statutes, provides:

    
    

    "(1) The registration of a registrant may be suspended for a period not exceeding 2 years, or until compliance with a lawful order imposed in the final order of suspension, or both, upon a finding of facts showing that the registrant has:

    
    

    1. Been guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing, trick, scheme or device, culpable negligence, or breach of trust in any business transaction, in this state or any other state, nation, or territory; has violated a duty imposed upon him by law or by the terms of a listing contract, written, oral, express or implied, in a real estate transaction; has aided, assisted, or conspired with any other person engaged in any such misconduct and in furtherance thereof; or has formed an intent, design, or scheme to engage in any such misconduct, and has committed an overt act in furtherance of such intent, design or scheme."

       
       

       "(d) violated any of the provisions of this chapter, or any lawful order, rule or regulation made or issued under the provisions of this chapter;"

       
       

       Rule 21V-10.10 Advertising. F.A.C., provides:

       
       

       "A broker shall not advertise by liner advertisements or otherwise sell, buy, exchange, rent, lease or mortgage property in a manner indicating that the offer to sell, buy, exchange, rent, lease or mortgage such property is being made by a private party, not engaged in the real estate business, and no advertisement shall be inserted in any publication where only post office box

       number, telephone number or street address appears. Every broker shall, when advertising real estate or a business opportunity, either through liner advertise or otherwise state in the advertisement the registered name of the

       broker and the term "Broker" or "Realtor" as the case may be. Provided, however, that the broker, if he is the owner of the property which he is advertising, has all the rights of the non-broker owner. Salesmen are prohibited from advertising to purchase any property or offering for sale, rent or lease any property under their own names. Provided, however, that a salesman, if he is the owner of the property which he is advertising, has all the rights of the nonsalesman owner. All advertising of property listed by a broker must be under the direct supervision and in the name of the employing broker.

       
       

11. Under the foregoing statutes, the evidence shows that the Defendant United Real Estate Association, Inc. is in violation of `the foregoing statutes by misrepresentation of the properties it sought to collect a fee on for rental. The methods of operation and the debts which were left after the offices were closed showed a breach of trust in a business transaction in violation of the foregoing statutes.

    
    

12. The license of United Real Estate Association, Inc. should be revoked.

    
    

13. Stuart R. Snively was the broker in charge of the Winter Park office in which the poor business management, misrepresentations and breach of trust took place and therefore he is guilty of negligence in failing to directly supervise the advertising of property listed by Defendant United or its employees in violation of the requirements of Rule 21V-10 of the Florida Administrative Code and also Subsection 475.25, Florida Statutes.

RECOMMENDATION

Revoke the Corporate License Number 0134096 of United Real Estate Association, Inc.

Suspend the license of Stuart R. Snively for a period of not less than thirty (30) days.

Dismiss Complaint as to the defendants, Clark Roberts, Juanita M. Robbins, Yvonne Yount and Vivian R. Whitney.

DONE and ORDERED this 1st day of January, 1977, in Tallahassee, Florida.

DELPHENE C. STRICKLAND

Hearing Officer

Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304

COPIES FURNISHED:

S. Ralph Fetner, Jr., Esquire 2699 Lee Road

Winter Park, Florida 32789

Albert P. Schwarz, Esquire

255 Royal Ponciana Way Palm Beach, Florida 33480

Docket for Case No: 76-000403

Orders for Case No: 76-000403