STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FLORIDA REAL ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 76-687

)

JIMMY C. REINHARDT and )

DAVID L. FULLER, )

)

Respondent. )

)

RECOMMENDED ORDER

This matter came before the undersigned Hearing Officer on the Administrative Complaint of the Florida Real Estate Commission charging the Respondents with having violated Section 475.25(1)(a), Florida Statutes, and Rule 21V-10.13, Florida Administrative Code, in that they indirectly made arrangements to receive additional compensation in addition to their commission without revealing this completely to all affected persons in the transaction.

APPEARANCES

For Petitioner: Richard J.R. Parkinson, Esquire

Florida Real Estate Commission 2699 Lee Road

Winter Park, Florida 32789

For Respondent: Samuel Hyman, Esquire

Post Office Box 18693 Tampa, Florida 32679

The transaction involved the sale of a single family residence in Tampa, Florida. This residence was listed with the Respondents by the owner, Marshall Ballard. Mr. and Mrs. Edward Ivan expressed interest in purchasing the house to the Respondent, Reinhardt. A problem developed because they could not come up with the amount of cash required by the seller, Mr. Ballard. Finally, a purchase price of $42,500 was agreed upon and the financial transactions were worked out by Reinhardt in the following manner. Reinhardt purchased the house from Ballard by paying him $6,000 for his equity in the house and assuming a note for $31,000 which was outstanding on the house. When the Ivans closed the purchase the documents they signed, which were shown to them for the first time at the closing, indicated that they were actually purchasing the house from Reinhardt and they executed a note and mortgage to him.

It is Reinhardt's position that he was acting also as a mortgage broker in this transaction and were it not for his efforts in working out the financial transactions the Ivans would not have been able to purchase the house which they wanted.

Reinhardt's relationship to the transaction was not disclosed to the Ivans until the documents were put before them at the closing. It cannot be said under these circumstances that they consented to Reinhardt's obtaining a financial interest in the transaction and it was not disclosed to them that the seller, Ballard, had agreed to a reduced purchased price. The difference between what Ballard accepted as a purchase price for the house and what the Ivans offered was potential profit for the Respondent Reinhardt. Apparently, this transaction is now in litigation between Reinhardt and the Ivans and Reinhardt has not actually made a profit from the transaction.

No evidence was presented at this hearing as to any involvement by the other Respondent, Fuller, and it is expressly made a finding of fact herein that no charges were proven against Fuller.

CONCLUSIONS OF LAW

The facts in this transaction clearly indicate that the Respondent Reinhardt obtained an undisclosed financial interest in the transaction wherein he was operating as a real estate broker. As such, he violated the trust imposed upon him by law. Zichlin v. Dill, 25 So.2d 4. Therefore, Respondent Reinhardt violated Chapter 475, Florida Statutes, and it is therefore RECOMMENDED that his real estate broker's license be suspended for six (6) months.

DONE and ORDERED this 14th day of June, 1977, in Tallahassee, Florida.

KENNETH G. OERTEL, Director

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

(904) 488-9675

COPIES FURNISHED:

Richard J.R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road

Winter Park, Florida 32789

Samuel Hyman, Esquire P. 0. Box 18693

Tampa, Florida 32679

================================================================= AGENCY FINAL ORDER

================================================================= FLORIDA REAL ESTATE COMMISSION

NORMAN H. RICKER,

Plaintiff,

vs. PROGRESS DOCKET NO. 2787

HILLSBOROUGH COUNTY

JIMMY C. REINHARDT DOAH CASE NO. 76-687

and

DAVID L. FULLER,

Defendants.

/

FINAL ORDER

At a regular meeting of the Florida Real Estate Commission held at the Executive Headquarters in Winter Park, Florida, on July 20, 1977,

Present: John R. Wood, Chairman

Maggie S. Lassetter, Vice-Chairman Levie D. Smith, Jr., Member

Appearances: Richard J. R. Parkinson, Attorney for Plaintiff

Samuel Hyman, Attorney for Defendant Jimmy C. Reinhardt, Defendant.

This matter came on for Final Order upon the Plaintiff's Administrative Complaint, the Hearing Officer's Recommended Order, Defendant Reinhardt's Exceptions thereto, and the Plaintiff's Exceptions thereto, together with the record and oral argument by counsel for the Plaintiff and counsel for Defendant Reinhardt, and the Commission having fully reviewed the entire record, the Findings of Fact and Conclusions of Law in the Recommended Order, and the Commission being fully advised in the premises, finds:

1.

That according to the records of the Commission, Defendant Jimmy C. Reinhardt is registered with the Commission as a real estate broker, 4267 Henderson Boulevard, Tampa, Florida 33609.

2.

That according to the records of the Commission, Defendant David L. Fuller is registered with the Commission as a real estate salesman with Jimmy Curry Reinhardt, 4267 Henderson Boulevard, Tampa, Florida 33609.

3.

That Defendant Reinhardt's Exceptions to the Findings of Fact as set forth in the Recommended Order of the Hearing Officer that Reinhardt was the listing broker is well taken and should be sustained; but that the remaining Exceptions to the Findings of Fact filed by Defendant Reinhardt are not well taken and should be denied.

4.

That Defendant Reinhardt's Exceptions as to the Conclusions of Law as set forth in the Recommended Order of the Hearing Officer are not well taken and should be denied.

5.

That the Plaintiff's Exceptions to the Findings of Fact as set forth in the Recommended Order of the Hearing Officer are well taken and should be sustained.

6.

That the Plaintiff's Exceptions to the Conclusions of Law as set forth in the Recommended Order of the Hearing Officer that "no charges were proven against Fuller" is well taken and should be sustained.

7.

That the remaining Findings of Fact and Conclusions of Law as set forth in the Recommended Order of the Hearing Officer are supported by competent, substantial evidence in the record and should be adopted as the Findings of Fact and Conclusions of Law by the Commission.

IT IS THEREUPON ORDER that the Findings of Fact and Conclusions of Law of the Hearing Officer, with the exceptions noted above be, and they are hereby, adopted as the Findings of Fact and Conclusions of Law of the Commission.

IT IS FURTHER ORDERED that Defendant Jimmy C. Reinhardt be, and he is hereby, adjudged guilty of violating Subsection 475.25(1)(a), Florida Statutes, Rule 21V-10.13, Florida Administrative Code, and Subsection 475.25(1)(d), Florida Statutes, as charged in the Administrative Complaint.

IT IS FURTHER ORDERED that David C. Fuller be, and he is hereby adjudged guilty of violating Subsection 475.25(1)(a), Florida Statutes, Rule 21V-10.13, Florida Administrative Code, and Subsection 475.25(1)(d), Florida Statutes, as charged in the Administrative Complaint.

IT IS FURTHER ORDERED that for such violations, the registration of Defendant Jimmy C. Reinhardt be, and the same is hereby, suspended for a period of six (6) months, said suspension to become effective upon the effective date of this Order as provided by law.

IT IS FURTHER ORDERED that the registration of Defendant David L. Fuller be, and the same is hereby, suspended for a period of thirty (30) days, said suspension to become effective upon the effective date of this Order as provided by law.

DONE and ORDERED at Winter Park, Florida, this 8th day of August, 1977.

John R. Wood Chairman

Maggie S. Lassetter Vice-Chairman

Levie D. Smith, Jr. Member

================================================================= AGENCY FINAL ORDER

================================================================= FLORIDA REAL ESTATE COMMISSION

NORMAN H. RICKER,

Plaintiff,

vs. PROGRESS DOCKET NO. 2787

HILLSBOROUGH COUNTY

JIMMY C. REINHARDT DOAH CASE NO. 76-687

and

DAVID L. FULLER,

Defendants.

/

FINAL ORDER

At a regular meeting of the Florida Real Estate Commission held at the Executive Headquarters in Winter Park, Florida, on November 21, 1977.

Present: Maggie S. Lassetter, Chairman Levie D. Smith, Jr., Vice-Chairman Arthur N. Hamel, Member

Appearances: Richard J. R. Parkinson, Esquire

Attorney for Plaintiff

This matter came on for Final Order upon the Petition for Reconsideration and Reduction of Penalty filed by Defendant Reinhardt and the Commission having

heard oral argument by counsel for the Plaintiff and the Commission having fully reviewed the entire record, Findings of Fact and Conclusions of Law in the Recommended Order, the Final Order and the recommendations submitted on behalf of Defendant Reinhart, and the Commission being fully advised in the premises and upon due consideration thereof:

IT IS THEREUPON ORDER that the Petition for Reconsideration and Reduction of Penalty be, and the same is hereby granted and the remaining period of the suspension which remains to be served is hereby suspended effective immediately.

DONE and ORDERED in Winter Park, Florida this 28th day of November, 1977.

BY ORDER OF THE COMMISSION

Maggie S. Lassetter

Docket for Case No: 76-000687

Orders for Case No: 76-000687