STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE COMMISSION FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, O4 2 0 6 8 vs. FDBPR Case N° 2003001734 2003001738 MARVIN BAKALAR AND BAKALAR REALTY, INC., Respondents. / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (“Petitioner”) files this Administrative Complaint against Marvin Bakalar and Bakalar Realty, Inc. (“Respondents”) and alleges: ESSENTIAL ALLEGATIONS OF MATERIAL FACT 1. Petitioner is a state government licensing and regulatory agency charged with the responsibility and duty to prosecute Administrative Complaints pursuant to the laws of the State of Florida, in particular Section 20.165 and Chapters 120, 455 and 475 of the Florida Statutes, and the rules promulgated pursuant thereto. 2. Respondent Marvin Bakalar is and was at all times material hereto a licensed Florida real estate broker, issued license number 496549 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as an active broker at Bakalar Realty, Inc., 12734 NW 18" Court, Coral Springs, Florida 33071. FDBPR vs Marvin Bakalar FDBPR Case N° 2003001734 Administrative Complaint 3. Respondent Bakalar Realty, Inc. is and was at all times material hereto a corporation registered as a Florida real estate broker having been issued license number 1013198 in accordance with Chapter 475 of the Florida Statutes. The last license issued was at the address of 12734 NW 18" . Court, Coral Springs, Florida 33071. . BO - . 4. At all times material hereto, Respondent Marvin Bakalar was licensed and operating as qualifying broker and officer of Respondent Bakalar Realty, Inc. 5. On or about July 12, 2002, Complainant submitted a check payable to Respondent for $5,000. A copy of the check is attached hereto and incorporated herein as Exhibit 1. 6. The above referenced check was a deposit for the sale and purchase of property commonly known as 4629 Forsyth Street, Bagdad, Florida. A copy of the contract is attached hereto and incorporated herein as Exhibit 2. 7. The contract for the sale and purchase of said property failed. 8. At all times material, Respondents cashed the above referenced check. 9. At all times material, Respondents did not place the deposit in escrow. 10. At all times material, Respondents have not returned Complainant’s deposit. 11. Respondents stated the money was an advanced fee. COUNT I Based upon the foregoing, Respondent Marvin Bakalar is guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme or device, culpable FDBPR vs Marvin Bakalar FDBPR Case N° 2003001734 Administrative Complaint negligence, or breach of trust in any business transaction in violation of Section 475.25(1)(b), Florida Statutes. COUNT II Based upon the foregoing, Respondent Marvin Bakalar is guilty of failure to account or deliver funds in violation of Section 475.25(1)(d)1., Florida Statutes. COUNT II Based upon the foregoing, Respondent Marvin Bakalar is guilty of failure to maintain trust funds in the real estate brokerage escrow bank account or some other proper depository until disbursement thereof was properly authorized in violation of Section 475.25(1)(k), Florida Statutes. COUNT IV Based upon the foregoing, Respondent Marvin Bakalar is guilty of collecting an advance fee for the listing of real property without depositing 75 per cent of such amount in a trust account and failure to account and deliver the advance fee, in violation of Section 475.452(1), Florida Statutes and Florida Administrative Code Rule 61J2-10.029(1), and, therefore, in violation of Section 475.25(1)(e), Florida Statutes. - - COUNT V Based upon the foregoing, Respondent Marvin Bakalar is guilty of failing to maintain separate and distinct account records and files for the advance fee operations and periodically reporting all such activity the Petitioner in violation of Florida Administrative Code Rule 61J2-10.029(2) and, therefore, FDBPR vs Marvin Bakalar FDBPR Case N° 2003001734 Administrative Complaint in violation of Section 475.25(1)(e), Florida Statutes. COUNT VI Based upon the foregoing, Respondent Bakalar Realty, Inc. is guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme or device, culpable negligence, or breach of trust in any business transaction in violation of Section 475.25(1)(b), Florida Statutes. COUNT VI Based upon the foregoing, Respondent Bakalar Realty, Inc. is guilty of failure to account or deliver funds in violation of Section 475.25(1)(d)1., Florida Statutes. COUNT VIII Based upon the foregoing, Respondent Bakalar Realty, Inc. is guilty of failure to maintain trust funds in the real estate brokerage escrow bank account or some other proper depository until disbursement thereof was properly authorized in violation of Section 475.25(1)(k), Florida Statutes. COUNT Ix Based upon the foregoing, Respondent Bakalar Realty, Inc. is guilty of collecting an advance fee for the listing of real property without depositing 75 per cent of such amount in a trust account and failure to account and deliver the advance fee, in violation of Section 475.452(1), Florida Statutes and Florida Administrative Code Rule 61J2-10.029(1), and, therefore, in violation of Section 475.25(1)(e), Florida Statutes. FDBPR vs Marvin Bakalar FDBPR Case N° 2003001734 Administrative Complaint COUNT X Based upon the foregoing, Respondent Bakalar Realty, Inc. is guilty of failing to maintain separate and distinct account records and files for the advance fee operations and periodically reporting all such activity the Petitioner in violation of Florida Administrative Code Rule 61J2-10.029(2) and, therefore, in violation of Section 475.25(1)(e), Florida Statutes. WHEREFORE, Petitioner respectfully requests the Florida Real Estate Commission, or the Department of Business and Professional Regulation, as may be appropriate, to issue a Final Order as final agency action finding the Respondent(s) guilty as charged. The penalties which may be imposed for violation(s) of Chapter 475 of the Florida Statutes, depending upon the severity of the offense(s), include: revocation of the license or registration or permit; suspension of the license, registration or permit for a period not to exceed ten (10) years, imposition of an administrative fine of up to $1,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, registrant or permitee to complete and pass additional real estate education courses; publication; or any combination of the foregoing which may apply. See Section 475.25(1), Florida Statutes (2001) and Florida Administrative Code Rule 61J2-24.001. The penalties which may be imposed for violation(s) of Chapter 455 of the Florida Statutes, depending upon the severity of the offense(s), include: revocation of the license, registration, or permit; suspension of the license, registration, or permit for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 FDBPR vs Marvin Bakalar FDBPR Case N° 2003001734 Administrative Complaint for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, registrant, or permitee to complete and pass additional real estate education courses; publication; restriction of practice; injunctive or mandamus relief; imposition of a cease and desist order; or any combination of the foregoing which may apply. See Section 455.227, Florida Statutes (2001) and Florida Administrative Code Rule 61J2-24.001. SIGNED this _/C, day of < ) ules , 2003. oT Z£. L oF Department of Business and Professional Regulation By: FILE A - Director, Division of Real Estate beni of Divis * Profors sional Rear AY aS SiON Of Real Estate Hatha ATTORNEY FOR PETITIONER ee O James P. Harwood, Senior "Attorney sna * Florida Bar N° 0425941 ° —— Division of Real Estate Department of Business and Professional Regulation, Legal Section - Suite N 801 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801-1757 (407) 481-5632 (407) 317-7260 FAX FDBPR vs Marvin Bakalar FDBPR Case N° 2003001734 Administrative Complaint JPH/k PCP: MV/JR 7/03 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573, Florida Statutes is not available for administrative disputes involving this type of agency action. PLEASE BE FURTHER ADVISED that pursuant to this Administrative Complaint you may request, within the time proscribed, a hearing to be conducted in this matter in accordance with Sections 120.569 and 120.57, Florida Statutes; that you have the right, at your option and expense, to be represented by counsel or other qualified representative in this matter; and that you have the right, at your option and expense, to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf if a formal hearing is requested. PLEASE BE FURTHER ADVISED that if you do not file an Election of Rights form or some other responsive pleading with the Petitioner within twenty-one (21) days of receipt of this Administrative Complaint, the Petitioner will file with the Florida Real Estate Commission a motion requesting an informal hearing and entry of an appropriate Final Order which may result in the suspension or revocation of your real estate license or registration. Please see the enclosed Explanation of Rights and Election of Rights form. FEB-26-2683 @4:37 PM VILLAGE RESOURCES INC 252 625 a8499 P.@2 PI? 03 O0BY “ Te i naalealied Roto tybinccin! eae ts Alive CO T #_) ee FEB-21-248@3 @9:27 AM VILLAGE RESOURCES INC 252 695 9428 P.GL COMPLAINT. PALA 2IE2 3:14 BM FROM: Fax BARALAR TO: 1252635040 PAGE: 002 CF 26S ENnchs wee VU) CONTRACT FOR PURCHASE AND SALE PARTIES First, inc. A Mississippi Corporation _, Selier(s), of PO Box 997, Clarksdale, MS 38614-0997. and Roy Jarvis &/or Villiage Resources, inc. , Buyer(s), cf PO Box 2122, Greenville, NC 27868-2122 hereby agree ‘hat the Seller shail sell and Buyer shall buy the following property (‘Property’) upon ‘fe following terms-and a “oy conditions which INCLUDE the Standards =or Reel Estate Transactions set forth on the side hereof or attached het O. (‘Standard(s)’). . / . fi “k ey s Gx DEPOSIT RECEIPT 1S HEREBY ACKNOWLEDGED OF THE SUM OF. “fer Thousand Dollars and No Cents “7s ‘s 000.0 {$16,000-08), in the form of a check from Purshaser as 2 depesit on account of the purchase price of the ‘ollowing described property ugon the terms and conditions as stated herein, whicn shall include the Standard For Reai Estate tor"’>\ Transactions and ‘he Real =roperty Sale Disclasure set forth on tha reverse side of *his Contract” BY: BY. X ESCROW AGENT UPON RECEIPT PURZHA: + CHECK IS ENCLOSED LEGAL CESCRIPTION of real estate iccated in Bagdad , County of Santa Rosa__, State of FL Legal description to foltow with a compete cooy of the lease_ amendments, renewal notifications, if any Sacscnal Property Included: _All improvements stuate thereon, and all furniture, fixtures and equioment located therein whisn belong to the Seer Street Address: 4625 Forsyt1 St. Baqced. FL. 32530-9998 {USPS Urit number 110450002} il PURCHASE PRICE Lovee Sock cee beens veeceee ss $_ 185,006.00 ay A. Deoosit to be held _Bakalar Realty, Inc. , EscrewAgentin the amountof . ........ .. $_+46-009.00-— 00 FA B Cast to close (excluding depesit} sub.ect to adjustments & prorations bee $_-A+48-950-00 / P0000 (Includes funds to be obtained cy a morgage obtained by Purcnaser} hor FOTAL ee ee ee Cov ece te beeen ns vs _. $186,000.00 ) tl. TIME FOR ACCEPTANCE: If this Contract is not executed by both parties on or before July 31, 2002 anv funds depositec in escrow by Buyer shall, at the option of the Buyer, be returnec to him and this offer shall thereafter be null and voic WV. TITLE EVIDENCE: Within 5 days from date of this Contract, Buyer shail order (check one)__1) abstract of title In accordance with Standard “A” set forth on the reverse side hereof; or _X__(2) 2 title guaranty commitment issJed by a qualified title insurer agreeing to issue to the Buyer, upon the recording of tne aeed hereinafter mentioned, an owner guaranty :n the amcunt of the purchase price insuring the title of the Buyer to that real property without exceptions or qualifications other thar: those set forth in this Contract and those which shall be discharged by Seller at or before closing. The buyer pays for the title Insurance premium and the update of the ttle, as well as state and county taxes on both the dead and the loan amount. Seller pays sales documentary stamp tax, Buyer and Seller agree that First American Title shall be the closing agent. The original title guarantee commitment shail be sent to the Buyer &/or the attorney for the Buyer at least 10 days prior to Clasing. Shoufd thera be an existing title commitment held by the Seller or his attorney that commitment should be forwarded to the Purchaser as soon as possible for thelr review of same. Should the title be acceptable it shall be updated to the date of closing. ‘ Vv. CLOSING SATE: This transaction shail be closed and the deed and other closing papers celivered on or before the, 30th day of October, 2002 , or sooner if agreed to by all parties, unless exfanded because the Title Company needs such an extension to complete the work needed to issue a clear Title commitment, or, by other provisions of the Contract. Vi RESTRICTIONS: The Buyer shall take title subject to zoning, restrictions, prohibitions, limitations and conditions imposed or required by any governmental bocy, authority or agency, taxes for year of closing not yet payable and subsequent years, if any and Seller shall convey title by Genera! Warranty Deed. Vil TYPEWRITTEN OR HANOWRITTEN PROVISIONS: Typewritten or handwritten provisiors inserted in this farm or attached hereto as Addenda shall control all printed provisions in conflict therewtth. Vill OTRER AGREEMENTS It is expressly understocd and agreed that, unless otherwise provided for herein, premises are being sold in their present as is condition: that all agreements are merged herein, and that there are no other agreements, representations, statements or wairarities express or implied, oral or written, of any kind on which the 1Lof4 ADMINISTRATIVE COMPLAINT Jo EXHIBIT # ~ ad eee, i PAGE \___ or Sy F/LL/2002 9:16 aM FROM: Pax BARALAR Tor 42526951420 PAGE: CO3 OF 005 undersigned has relied unless reduced in writing and attached heretc as part hereof IX DATE OF CONTRACT: For performance purposes, the date of this Contract shail be the date when the last one of the Buyer and Seller has signed tne Contraci, or the date wien the purchaser shalt receive a fully executed ccpy of the Contract, said ccoy may be faxed :c Purchaser or nis attorrey. xX CONTRACT NOT RECORDABLE AND PERSONS BOUND: This Contract or any notice thereo’ shall not be recerced in any public records Benefits and ob: gations of the covenants herein shall inure to and bind the respective hers. executors, administrators, successors and assigns (where essignment is permitted) of parties hereto. Wheneve: used singular numbers shali incluce piura., the plural the singular, and use of any gencer shall inciude all genders. Xl. OCCUPANCY: Seller represents that there are no parties in occupancy other than the U.S. Postal Service, but f Progerty is intended to be rented or ecaupied beyond closing, the fact and terms ‘hereof shall be statec herein and the tenant(s} shall be discicsed. Seller agrees to deliver occupancy of Property at time af closing unless otherwise stated herein. Risk of loss or damage tc Propery pnor to closing ss assumed by Seliers. It occusancy ts to be delivered prior to closing, Buyer assumes all risk of loss to Property and Perscnaity from date of occupancy, and snail be responsidle arid liable for mainterance thereof from said date, and shail be deemed to have accepted the Property and Fersonalty in their existing condition as of time of taking occupancy unless otnerwise stated herein or in separate writing Xi ASSIGN ABILITY: (check): Buyer (1) [X] may assign tae Contract; OR; (2) [ may net assign, Contract. XW, ADDITIONAL CLAUSES: (Use addendum sheet if more space is needed.) A. COMMISSIONS AND/OR FINDERS FEE: The undersignec Seller(s), jointly & severally, agrees to sell the above mentione¢ property, or the terms and conditions stated in this instrument & further, jointly & severally, agree to pay, Bakalar Reaity, Inc., in the State of Flonda, by good tellers oank, certified grec are ‘or cash upon signing of any contract(s) for sale on any transacticr(s) that they are 2 party ‘c, a finders fee of 77, ap wt donc Dollars and No Gents (§ 5220 se of the contract or agreed upon selling rice for finding and introcucing said purchaser for the above property. In the-event that :t is necessary to retain counsel to ntorce the payment of said finders fee, then tre undersigned Seller, jointly and severally, egree to pay all costs, and gasonable attomey’s fees inaurred by the Bakalar Realty, Inc., in conrection with the enforcement of this agreement. It is ithe agreed that Bakalar Realty, Inc. is the only Party involved ard is resoonsible fer knnging about the sale, and Is the recognized precuring cause of this transaction B. DUE DILIGENCE: Furchaser shall have_ 30 days to review the lease, visit the property for the purpose of personal Inspection and review any other material presented during which time said Purchaser may cancel this contract and demand return of his deposit if anything in the lease is not as presented in the general infermation provided C. SELLERS RIGHT TO AN IRC CODE TAX DEFERRED EXCHANGE: The Sellers shall have 9C days within which to find and identify “Like-ind* exchange property for the purpose of deferring any possible capital ga.n tney may face and may shoose to terminate this contract under no possible claim against them should they not find a suitiole praperty to purchase. The Sellers may choose to waive this clause but such waiver must be in writing THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT (Consult an attorney to explain any terms not understood) Executed by Buyer(s) on _X 7 42/fe 2 (date) | have read and understood the preceding Contract and Standard for Real Estate Transactions Disclosure below, and | am not relying on any statement or representation not set forth herein. . ei —— x if &/of Ville Resources, Ine as BUYER(S) _X Roy4a Executed by Seller(s) cn X Ea é - kp 2{date). | have read and understood the above Contract and the Standards for Real Estate Transactions and Disclosure below, and | am not relying on any statement or represertation not set forts herein.. SELLER(S): iA First Inc., by: Lawrence M. Mag: $2695048) PAGE: 204 OF 955 S"ANDARDS FOR REAL ESTATE TRANSACTIONS AND DISCLOSLRE A EVICENCE CF TITLE: (1) A “oase aostract’ of title brought current through date of this Contract For purposes of this Contract a “base abstract" shail mean an abstract commencing with the earliest public records, cr such later date as may be sustamary in the ccunty wherein the land is situate, which has last been certified to a date within 35 years immediately preceding the date of this Contract. Seller sali convey a marketable title in accerdance with the Standards adopted frem time to time by the Florida Bar, subject only to liens, encumbrances, exceptions or qualificatians set forth in this Contract and those which shall be discharged by Seller at or before closing. If 2 defect in title is discovered, Seller snali have reasonable tire to clear same athis expense If any such title de‘ect carnot be cured, then Buyer shall have cption to take title with tne defect or to receive a return of the escrow deposit. B. EXISTING MORTGAGES. “he Selter shall oblain and furnish a statement from the mortgagea(s} setting forth principal balance, method cf payment, interest rate, and whether the mortgage(s} ‘s/are in good standing © PURCHASE MONEY MORTGAGES: The purchase money vote and mortgage, if ary, shall provide for a thirty (30; cay grace period in the evert cf defau't if it is a first mortgage and a fifteen (15) day grace fericd f a second mortgage; sxall provide for the right of prepayment in whole or in part without peralty and shall rat provide for acceleration in the event of resaie of the property 0. TERMITE AND ROOF INSPECTION: Seller represents that to the best of its knowlecge the property is termite free and tnat the roof is in good repair and watertight. Buyer may have property inspected by licensed roof and termite inspectors at Buyer's expense Termite shall te deemed to include all termites, subterranean termites anc wood destroying arganisms E. LEASES: Seller shail, not less than ten (10) days prior to closing, furn.sh tc Buyer copies of all wrtten leases for eacn tenant specifying the nature and duration of said tenant's cccugancy, rental rates and advanced rent and security deposits paid by tenant. In the event Selier is unable to obtain such letters from tenant, the same irformation shali be furnishec by Seller to Buyer within said time pered in tne form of a Setlers affidavit, and Buyer may thereafter contact tenants to confirm such information. Seler shall deliver and assign all original leases to Suyer at closing F LIENS: Selle’ shall toth as to the realty and perscnalty being sold hereunder, furnish the Buyer at time of ciosing, an affidavit attest:ng to tne absence, Jnless otherwise provided for herein, of any financing statements, claims of len or pctential lienor’s known to Sellar and further attesting tnat there have been no imprcvements to the property for ninety {90) days immediately preceding date of closing. If the property has been improved within said time, Seller sha!l deliver release or waivers of all mechanic's liens in addition to Seller's No-Lien Afficavit. Seller shall a'so deliver such documents and/or affidavits as may be reasonabiy -equired by the title company G. PRORATION OF TAXES (REAL AND PERSONAL) if applicable, taxes shail be prorated based cn the current year's tax with due allowance made for maximum allowable discount. TAXES ARE REIMBURSED BY THE USPS AND THEREFOR NEED NOT BE PRO-RATED. Rents fo be prorated per the Closing date understanding that rents are paid in arrears. Buyer and Saller each agree that should either party get a rent check that is not due them they will immediately forward such payment to the other party Water and Sewer charges to be prorated if a lien H. SPECIAL ASSESSMENT LIENS: Certified, confirmed and ratified speciai assessment iiens as of date of closing are to be paidto Seller, Penaing liens as of date of closing shat! be assumed by Buyer, provided, however, that where improvernent has Deen substantially completed as of the date of Contract, such pending lien shall be considered as certified, confirmed of fatified and Seller shail, at closing, be charged an amount equal to the last estimate by the public boay cf tne assessment for the improvements. | PROGEEDS OF SALE The proceeds of closing will be retained by the Closing and Escrew agents unt! all documents necessary for the transfer and recordation of the deeds have been satisfactorily executed. J. OEFAULT BY BUYER: Should the transaction not be consummated as nerein provided, due to any defauit or fature on the part cf the Buyer, the Seller may, at his option, take legal action to enforce this Contract. K. DEFAULT BY SELLER: Should the transaction not be consummated as herein provided, due to ary default cr failure on the past of the Selier, the Buyer may, at his option, take legal action tc enforce this Contract. K. THE CEPOSIT: The escrow agent may hold said deposit until the closirig cf the sale. If any disoute arises between the Buyer and Seller as ta final disposition of the deposit, said escrow agent may institute a suit to determine who is entitled to said money, and the cosis of that suit including reasonable attorney's fees incurred by said escrow agent shall be paid out of said deposit F/t142002 8:14 aM FRC: Fax BARALAR TO: 12926955482 PAGE: COE CF USS L ORCRATIONS ifrecessary, taxes. insurance interest, rents (RENTS ARE PAID IN ARREARS AND THERE=OR MUST BE FRO-RATED ACCORD'NGLY) ard otrer experses and revenue of said property shall be prorazed as of ihe date of closing. Security depesits, if any shall be tumed over by Seller to Buyer at the clesing M. MAINTENANCE: Between date cf cortract and date cf closing, the property shall be maintained by Seller in the cendition it exists as of date of Contract, ordinary wear and tear excepted. N. SURVEY. The Buver, within the time a iowed ‘or Celivery of evidence of titie and examination tnereof, may have the groserty surveyed at nis expense. if the survey shows all mprovemen:s not within the bouncary lines of Preperty or indicate 20 encroacnment, the sae shall be treated as 2 defect in title. If Buyer obtains survey, Buyer may require desenptios ir Geed to correspond to survay obtained O. TAX DEFERRED EXCHANGES: Should either (or totn parties} party be involved in a tax deferred (RS exchange the parties agree that at no expense to the ncn-involved party, to execute whatever lege’ documents are ‘equirec to complete the traisaction as per the applicable IRS code invoked

Docket for Case No: 04-002068