STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FLORIDA REAL ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) DOCKET NO. 76-1380

) CAPITOL RENTAL AND REALTY, INC. ) and L.D. VAN ORE )

)

Respondent. )

)

RECOMMENDED ORDER

A hearing was held in the above styled cause pursuant to notice on October 13, 1976 in the offices of the Florida Real Estate Commission, Southland Building, 2699 Lee Road, Winter Park, Florida, before Stephen F. Dean, assigned Hearing Officer of the Division of Administrative Hearings. This matter came on to be heard upon the Administrative Complaint filed by the Florida Real Estate Commission against Capitol Rental and Realty, Inc. and Lawrence D. Van Ore alleging that said Respondent permitted non-registrants to perform the duties of, registrants contrary to Section 475.42(1)(c) and further that the Respondents did cause to appear in various newspapers linear advertisements which read in part "Fee - BKR (or bkr) Capitol Rentals, Rlty, 822-6008", said form of advertising being a violation of Section 21V-10.10, F.A.C.

APPEARANCES

For Petitioner: John Gough, Esquire

Florida Real Estate Commission 2699 Lee Road

Winter Park, Florida 32789

For Respondent: Don Scarlet, Esquire

801 North Magnolia, Suite 317

Orlando, Florida 32803 FINDINGS OF FACT

1. The Parties stipulated that Capitol Rental and Realty, Inc. is a corporate broker and that Lawrence D. Van Ore is a registered real estate broker associated with Capitol Rental and Realty, Inc. The Parties further stipulated that Capitol Rental and Realty, Inc., hereinafter Capitol, employed Michael O'Brien and Gerry Clover.

   
   

2. Lawrence D. Van Ore is the President of Capitol Rentals and Realty, Inc. and has the administrative duties and authority to train, counsel, oversee the activities of the employees of the corporation, and to execute contracts on behalf of the corporation.

3. Judy Ann Myer, classified ad advisor for the Orlando Sentinel Star, identified the classified ads of the Orlando Sentinel Star for March 1976, Exhibit 5. Ads from Capitol were received by Judy Ann Myers in person from either Lawrence Van Ore or Michael O'Brien. The classified ads of the Orlando Sentinel Star contained ads by Capitol which state in pertinent part "Broker-Fee CAPITOL RENTALS AND REALTY 423-8591."

   
   

4. Michael Martin O'Brien and Geraldine Clover are not now nor have they been for the last four years registered with the Florida Real Estate Commission either as real estate brokers or salesmen. Capitol, in addition to providing traditional real estate services, also provides a rental listing service. Said rental listing service is a composite listing of various properties, particularly homes, which are for rent by the owners, landlords, property management concerns, or realtors. These listings are obtained by lessors contacting Capitol or by Capitol contacting lessors. Listings are placed into listing books containing a description of the property for rent, its location, rental price, and special features. No charge by Capitol is made to the lessor for placing the description of the property in the listing book. Capitol advertises such listings and its service. A person inquiring with regard to a particular advertised property would be referred to the lessor, and be told the details of Capitol's listing service.

   
   

5. For a fee of $30 a person would be entitled to use Capitol's listing books and obtain from them a listing of properties of the type, in the price range, and in the location in which the individual is interested. The individual is entitled to use the listing book for up to one year.

   
   

6. Capitol and Van Ore employed Michael O'Brien, Geraldine Clover and other non-registrants to contact lessors regarding placing their property within Capitol's listing book, interviewing individuals who inquired as to the listing service, and referring individuals interested in specific properties to lessors.

   
   

7. Capitol did not participate in any transaction between a client of the rental listing service and a lessor, and persons availing themselves of the listing service dealt directly with the lessor or their representatives.

   
   

8. The effect of the rental listing service is to provide a directory to persons looking for rental property and by use of said directory to refer such persons to the lessor.

   
   

   CONCLUSIONS OF LAW

   
   

9. Section 475.01(2) provides that every person who shall in Florida for another and for compensation take part in the procuring of sellers, purchasers, lessors or lessees of the real property or who shall direct or assist in the securing of prospects, shall be deemed and held to be a "real estate broker" or a "real estate salesman."

   
   

10. Section 475.42(1)(c) provides that no broker shall employ or continue in employment, any person as a real estate salesman who is not a holder of a valid current registration certificate as salesman.

    
    

11. Clearly, Michael O'Brien took part in the procuring of lessees for real property and assisted in procuring of prospects for valuable consideration in the form of salary. By engaging in the performance of such acts Michael O'Brien is deemed and held to be a real estate broker or real estate salesman.

12. As president of a corporate broker, Capitol, Lawrence D. Van Ore employed Michael O'Brien, assigned duties to Michael O'Brien, and was aware of the duties which O'Brien performed. By the aforesaid actions, Lawrence D. Van Ore violated 475.42(1)(c) F.A.C. Capitol Rental and Realty, Inc. by virtue of the aforesaid actions of Lawrence D. Van Ore as Capitol's president and chief executive officer, is guilty of violating Section 475.42(1)(c) Florida Administrative Code.

    
    

13. Rule 21V-10.10, F.A.C., provides in pertinent part that every broker, when advertising real estate or business opportunity, either through liner advertisements or otherwise, shall state in the advertisement, the name of the registrant as it is registered with FREC and the term "Broker" or "Realtor" as the case may be.

    
    

14. The advertisements of Capitol Rental and Realty, Inc., the registered name of the corporate broker in this case, was not fully stated in the advertisements contained in the Orlando Sentinel Star, the abbreviation "Inc." not having been contained in said advertisements.

    
    

15. Section 475.25(1)(d) provides in pertinent part that the registration of a registrant may be suspended for a period not exceeding two 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 violated any of the provisions of this chapter, or any lawful order, rule or regulation made or issued under provisions of this chapter.

RECOMMENDATION

Based on the foregoing Findings of Fact and Conclusions of Law, the Hearing Officer recommends that the Florida Real Estate Commission enter its final order directing Capitol Rental and Realty, Inc. and Lawrence D. Van Ore cease and desist from using non-registrants as real estate salesmen and further from failing to use the full name of the registrant and the term "Broker" or "Realtor" within its classified advertisements. The Hearing Officer further recommends that the registration of the registrant be suspended until the corporate broker and associate broker Lawrence D. Van Ore have complied with said order of the Commission.

DONE and ORDERED this 26th day of October, 1976 in Tallahassee, Florida.

STEPHEN F. DEAN

Hearing Officer

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

(904) 488-9675

COPIES FURNISHED:

John Gough, Esquire

Florida Real Estate Commission 2699 Lee Road

Winter Park, Florida 32789

Don Scarlet, Esquire

801 Magnolia - Suite 317

Orlando, Florida 32803

Docket for Case No: 76-001380

Orders for Case No: 76-001380