STATE OF FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION fF [f= p FLORIDA REAL ESTATE APPRAISAL BOARD vo fe FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, 1005 APR yo Jy Petitioner, v. CASE NO. 2002008063 2002008077 CHARLES E. SCOTT, Respondent. LS- \ 4) ") A ( / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Charles E. Scott (“Respondent"), and alleges: ESSENTIAL ALLEGATIONS OF MATERIAL FACT {. 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, including Section 20.165 and Chapters 120, 455 and 475 of the Florida Statutes, and the rules promulgated thereunder. 2. Respondent is currently a Florida state certified residential real estate appraiser having been issued license 1851 in accordance with Chapter 475 Part II of the Florida Statutes. 3. The last license the State issued to Respondent was as a state certified residential real estate appraiser at 931 NE 79" Street, Miami, Florida 33138-4715. 4. On or about March 30, 2001, Respondent prepared and communicated an appraisal FDBPR v. Charles E. Scott Case No. 2002008063 Administrative Complaint report on a property located at 16829 81 Lane North, Loxahatchee, Florida 33470. (Subject Property). A copy of the report is attached hereto and incorporated herein as Exhibit 1. 5. Respondent hired a registered appraiser by the name of Frederick Pedoto. 6. At all times material, Respondent knew or should have known that Frederick Pedoto operated at 5509 Jefferson St., Hollywood, Florida. 7. At all times material, Frederick Pedoto was Respondent’s agent, and authorized by Respondent to act for or in place of him. 8. At all times material, Donna Deihl, of Innovative Mortgage contacted Respondent’s agent, Frederick Pedoto, to prepare the appraisal report for the subject property. 9. At all times material, David Taylor, homeowner, paid Respondent’s agent $300 for the appraisal report for subject property. 10. At all times material, Respondent’s agent delivered the appraisal report to Donna Deihl of Innovative Mortgage, duly signed by Respondent. | 11. At all times material, Respondent failed to register with Petitioner the office located at 5509 Jefferson Street, Hollywood, Florida 33021. 12. At all times material, Respondent failed to retain a working file for the appraisal report on subject property. 13. Respondent knew or should have known that electronically affixing a signature to the certification in an appraisal report carries the same level of authority and responsibility as an ink signature on paper. 14. Respondent reported in the appraisal report that subject property has city water, and FDBPR v. Charles E. Scott Case No. 2002008063 Administrative Complaint sanitary sewer and storm sewer. 15. Respondent knew or should have known that subject property had a well to supply water, septic tank, and was located on a dirt road with no storm sewer. 16. Respondent reports that comparable sale 1 is located within four blocks of subject property, comparable 2, five blocks and comparable sale 3, three blocks from subject property, respectively. 17. Respondent knew or should have known that all three comparable sales are located in Jupiter Farms, approximately 10 miles to the north of subject property. 18. Respondent reported that none of the comparable sales had been sold within the year preceding the date of appraisal report. 19. Respondent knew or should have known that comparable sale 1, sold on November 2000 for $180,000; and comparable sale 3, sold on July 2000 for $175,000. 20. Respondent knew or should have known that lot size for comparable sale 1 was 60984 sq. feet; comparable sale 2 was 45302 sq. feet; and comparable sale 3 was 108,900 sq. feet. 21. Respondent admitted to Petitioner’s investigator that he did not have the assignment logbook record for the time period that Frederick Pedoto worked under his supervision. COUNT I Based upon the foregoing, Respondent is guilty of having failed to exercise reasonable diligence in developing an appraisal report in violation of Section 475.624(15), Florida Statutes. COUNT I Based upon the foregoing, Respondent has violated a standard for the development or FDBPR v. Charles E. Scott Case No. 2002008063 Administrative Complaint communication of a real estate appraisal, specifically Standard 1-1(b), (c), 1-4(a) and (b), and Statement of Appraisal Standards No. 8 — Signed Certification, and Ethics - Record Keeping, or other provision of the Uniform Standards of Professional Appraisal Practice in viclation of Section 475.624(14), Florida Statutes. COUNT If Based upon the foregoing, Respondent is guilty of failure to register an office location in violation of Section 475.623, Florida Statutes. FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 22. Petitioner realleges and incorporates herein paragraphs One through Three above. 23. On or about February 28, 2001 Respondent prepared and communicated an appraisal on a property located at 7759 NW 16t" Avenue, Miami, Florida 33150. (Subject Property ) A copy of the Report is attached hereto and incorporated herein as Exhibit 2. 24. Respondent reported that subject property had central heating/cooling unit. 25. Respondent knew or should have known that subject property had no central heating/cooling unit. 26. Respondent reported that none of the comparable sale properties had been sold during the year preceding date of appraisal. 27. Respondent knew or should have known that comparable sale 1 sold during January 2001 and had a mortgage of $76,378 and this property also sold during August 200 for $37,500. 28. Respondent knew or should have known that comparable 2 sold during April 2000 and had a mortgage for $76,500 and also sold during December 1999 for $20,000. FDBPR v. Charles E. Scott Case No. 2002008063 Administrative Complaint 29. Respondent knew or should have known that and comparable 3 sold during October 2000 and had a mortgage of $73,824, and also sold during April 2000 for $40,000. 30. Respondent knew or should have known that an appraisal report description of neighborhood boundaries was incorrect. 31. Atall times material, Respondent failed to retain a working file for the appraisal report on subject property. 32. Respondent knew or should have known that electronically affixing a signature to the certification in a report carries the same level of authority and responsibility as ari ink signature on paper. COUNT IV Based upon the foregoing, Respondent is guilty of having failed to exercise reasonable diligence in developing an appraisal report in violation of Section 475.624(15), Florida Statutes. COUNT V Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard 1-1(b), (c), 1-4(a) and (b), and Statement of Appraisal Standards No. 8 -- Signed Certification, and Ethics — Record Keeping, or other provision of the Uniform Standards of Professional Appraisal Practice in violation of Section 475.624(14), Florida Statutes. COUNT VI Based upon the foregoing, Respondent is guilty of failure to register an office location in violation of Section 475.623, Florida Statutes. FDBPR v. Charles E. Scott Case No. 2002008063 Administrative Complaint FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 33. Petitioner realleges and incorporates herein Paragraphs One through Three above. 34. On or about April 2, 2002, the Florida Real Estate Appraisal Board issued a final order finding Respondent guilty of violating Section 475.624(15), Florida Statutes, and imposed an administrative fine of $500. A copy of the final order is attached hereto and incorzorated herein as Exhibit 3. COUNT VIL Based upon the foregoing, Respondent is guilty of having been found guilty, for a second time, of any misconduct that warrants disciplinary action, or has been found guilty of a course of conduct or practice which shows that he is incompetent, negligent, dishonest, or untruthful to.an. extent that those with whom he may sustain a confidential relationship may not safety do so in violation of Section 475.624(10), Florida Statutes. WHEREFORE, Petitioner respectfully requests the Florida Real Estate Appraisal Board, 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, registration, or certificate; suspension of the license, registration or certificate for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 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 certificate holder to complete and pass additional appraisal FDBPR v. Charles E. Scott Case No. 2002008063 Administrative Complaint education courses; publication, or any combination of the foregoing which may apply. See Section 475.624, Florida Statutes and Rule 61J1-8.002, Florida Administrative Code. 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 certificate; suspension of the license, registration, or certificate for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 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 certificate holder to complete and pass additional appraisal 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, Fla. Statutes and Florida Administrative Code Rule 61J1-8.002. SIGNED this 4 day of Mea. < D , 2004. Jin Department of Budiness and Professional Regulation By: Director, Division of Real Estate a FDBPR v. Charles E. Scott Case No. 2002008063 Administrative Complaint ATTORNEY FOR PETITIONER A. Santana, Senior Attorney Fla. Bar No. 318360 Division of Real Estate Legal Section 400 W. Robinson Street, N801 Orlando, Florida 32801-1727 (407) 481-5632 (407) 317-7260 - FAX PCP: FG/MC/CK. 5/3/04 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573 of the 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 of the 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 Appraisal Board 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. re rename weer onan Se a 193290) Lye Cty LOXAHATCHEE “~"" Stete FL ZipCode 33470 Legal Dascription LENGTHY, SEE ADDENDUM, County _ PALM BEACH A Assessor's Parcel No. 00-44-0-34-00-000-3220 TexYear_1999 RE. Taxes$ 2,046.04 Special Assessmenis$ N/A Ferg Borrower TAYLOR Current Owner TAYLOR Occupant ‘Owner Tenant Vacant FI Fee simple | [Leasehold "Project Type | [Pu] [Gandomisium iubrva only) HOAS "N/A Mo. El Neighborhood or Project Name JUPITER HOMES Map Reference 40-34-41 Census Tract 104.000: Sale Price $ REFINANCE _ Date of Sale N/A Description and $ amount of loan charges/concessions to be paid by seller NA Lender/Chent INNOVATIVE MORTGAGE “ Address 4690 FOREST HILL BLVD, WEST PALM BEACH, FLORIDA 33445. Appraiser HARL SCO Address 5509 JEFFERSON STREET HOLLYV/QOD., Fi Suburban |] Rural Single family housing Present land use % | Land use change A 25-75% Under 25% (000) 7 Location | Jurban x ate [“lover75% [x fo) |Onefamiy 75} [X]Not tikely [_JUkely thre {_|Rapid XJstabe [7]siow 125 Low NEW |2-4tamiy 10 Im process Property values {__lincreasing [X stable ‘Declining ig xX Muti-famity 5 Demand/supply |_} Shortage In balance |_| Over supply Commercial 5 Marketingtime | lunder3 mos. |X 3-6 mos. over 6 mos. Vacant (over 5%) Veicant, 5 Note: race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: the subject Is located east of pratt whitney r d._west Of 1-95, south of bridge rd. Factors that affect the markatabiity of the properties In the neighborhood Groximty to employment and amenities, employment stablity, appeal to market, etc): biect property Is located in-re le di ket ret ni uch as pbulic schools and fal ability: avi transportation, recreational and emloyment centers. Financial ability: average, Employment stability, | Is also considered to be average. erage arket appeg NEIGHBORHOOD: ‘Market conditions in the subject neighborhood (including support for the above conclusions related to the trand of Property values, demand/supply, and marketing time — such as data on Competitive properties for sale In the neighborhood, description of the Prevalence of sales end financing concessions, etc.): Neighborhood is well estabiisned, The property's value has been fairly steady with slight Increases. Dema could affect the Pbly Is In balance. No specia! financing, loan discounts or Interest buy downs thai narketability of the biect property were found In the market, 4 Project Information for PUDs (if applicable) — Is the developar/bullder in control of the Home Owner's Association (HOA)? [_]ves: LX]No Approximate total number of unts In the subject Project N/A Approximate total number of units for sile in the Subject project Describe common elements and recreational facilities: i D, Dimensions (From Legal Description) Ste area 50.965 SQ.FT. Specific zoning classification and description RI-SINC Zoning compliance [X]Legat_[” Jeg! neneontorning Highest & best use as improved: | X |Present use | _]Other use (exp Topography Size Average Shape ——._Rectangula Drainage Appears Adequate _ View Residentia Landscaping —_— G00! Driveway Surface Gravel/All wea Apparent easements Comer tot [_]yes [X]No NTIA SITE FEMAMspNo. 42019200! Comments (apparent adverse Sasements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning use, ac.); Typlea easements are assumed. No adverse con 3 note: {i f inspection. GENERAL DESCRIPTION EXTERIOR DESCRIPTION BASEMENT INSULATION No. of Unis One Foundation CONCRETE Area Sq. FR. NONE _|} Roof _ a No. of Stories ONE Exterior Walls B/StUCCO % Finished Celling _. Type (Det Att.) —_ Detached | Root surtace INGLE Ceiling Walls Design (Style) RANCH __| Gutters & Dwnspts. ALUMINUM Walls Floor _ fy Existing/Proposed _ BUILT 1996 | Windaw Type SINGLE Hi Floor None By Age (vrs.) Q Storm/Sereens NO/YES Outside Entry Fad_Effective Age (Yrs, 1-3 __| Manufactured House __NO 3 ROOMS | Foyer | Living Dining | Kitchen |: ‘Den 8 Baths a Fed Loved 1 bE x 4 4 4 4. 3._| 2.00 Ee} Lovet 2 _| B | PM Finished area above grade contains: Z Rooms; Bedroom(s); 00 Bath(s); fa INTERIOR == Materials/Condition HEATING KITCHEN EQUIP.) ATTIC. AMENITIES CAR STORAGE Pd Floors —OAK/TILEGOOD | Type _Central_| Refrigerator [X]| None Fireplace(s) # None in Walls DRYWALL/GOOD Fuel _Electric | Range/Oven LX)! Stairs [| Patio Garage fof cars TrimvFinih __CERAMIC/GOOD | Condiien GOOD | Dispose! XJ) Drop ster [| | Deck Attached Bath Floor CERAMIC TILEGD | COOLING Dishwasher [X/} scuttle [X] | Porch _ COVERED Detached Bath Wainscot___ Tile/GOOD Central __YES | FantHood = [X]| Foor = {7} | Fence Butlin Doors WOOG/GOOD | other _NoNe | Microwave [X]! Heated [_] + Poot All above OOD CONDITIO Condition GOOD | Washer/Dryer | X |! Finished Li Additional festures (special energy efficient terre, stc.): SECURITY ALARM, TILE & CARPET, 2 CAR GARACE, V ATELL DISH. ARPET Ss. ~ epreciation (physical, functional, and external), repairs needed, quality of constructior, remodeling/addtions, etc. Th: e well maintained. No functional, physical or external Inadequacies were apparent 2 i ri Jn 900d condition, Adverse environmental conditions {such as, bud not limited to, hazardous wastes, toxic substances, etc.} present in the improvements, on the site, or in the innmadiate vicinty of the subject property.: ditions at the time of. EE CICKFORMS Resi Estate Appraiss! Software by. Bradford Technologis e228727 EXHIBIT___|- PAGE COMMENTS Fannie Mae Form 1004 (6-93) ADMINISTRATIVE COMPLAINT. BIT 4 EXH PAC se E n An Sie value, square foot calculation and for HUD, VA and FmHA, the Oweling __4.618 sq. @S 75.00 =s 121.350 estimated remaining economic Ife of the property): See —Bsmt__NONE sq.R.@$ = 0 building sketch for sa ft. calculations, Cost 3 PORCH.PATIO = 5,000 ‘approach and depreciation from Marshall Swift's fq GaregeCarpot 378 S¢.R@$ 2000 © 7,560 residential handbook and iocal market a5 weil as iq Total EstimatedCostNew ithe appratsers experience. Land to value | Faq Less Physicat 2 persion normal for the area, and It does not affect hi Depreciation 2.678 Deprecisted Value of improvements . “As is" Value of Site Improvements... . INDICATED VALUE BY COST APPROACH zeTamarketaplity of the subiect property. 131,232 _Ramalning econamic lifeso+ 410.000 4 Est Rem Econ Life: 50+ yrs Site/Total 2896 ITEM SUBJECT COMPARABLE NO. 7: COMPARABLE NO, 3 16929 81 LANE N 17855 BRIDLE COURT 17862 121 TERRACE N Address LOXAHATCHEE LOXAHATCHEE LOXAHATCHEE Proximity to Subject _Z Bam S BLOCK: Seles Price $ REFINANCE _ 85, Prce/Grsstv.Aea 1$ 0.00 [7$ 19979 126.37_" Data and/or INspec/P.R. IsC/inspection IsCinspection (sCAnspection Verification Source {SC/MLS _ FARES ISC/MLS JSC/MLS VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(}S Adjustment, DESCRIPTION, +[-}$ Adjustment DESCRIPTION +()$ Adjustment, Sales or Financing Conventional CONVENTIONAL CONVENTIONAL Concessions i . _{ MORTGAGE ref MORTGAGE Date of Sale/Time 4 44/2000 42/21 Location Suburban Suburban Suburban _|__ Suburban LeassholdFee Simple | __ Fee Simple Fee simple Fee Simple Fee Simple Site 50,965 SQ.FT, _ 984 SQ.FT. 50,302 SQ.FT. No adi} 54,450 SQ.FT. : View Residential intial Residential Residential Design and Appeal RANCH RANCH RANCH — Ranch Quality of Construction | Average Average | Average Average _ 1996 _ A987 +2.000 1977 + 4,000 1994 No adi Condition coop coop Goo = Goo! “ fy Above Grade | Tota | parms | pets ae [oars Tote!_| Ade | Bete Tom | nams | fats Room Count 213 j200[ 7 [3 [2 213 [200 / 71/3 [200] Eq Gross Living Avea 1.618 SoR| 1.685 SoA. 1.300 1,464 son. +3,080_. 1,697 sa.A. 21,581 Ed Basement & Finished NONE None None [N° none fey Rooms Bolow Grade ~~ 4 Functional Uniti Aver. A Aver: Avera! a Heati ting ITRAL NT! R. CENTRA\ ed Energy Efficient tems IN NONE a Garage/Carport 2 Garage 2/Garage . 2iGarage Ed Porch, Patio, Deck, PATIO.PORCH, PATIO,PORCH PATIO,PORCH PATIO,PORCH Fireplace(s), etc. NONE JONE NON! Fence, Pool, otc. NONE, Net Adj. (total X|+ - $ X [+ ~ $ d + 1X\- $ 2 Adjusted Sales Price i of Comparable 185,71 192,080 205,400 Comments on Sales Comparison (including the subject property's compattbtityte the neighborhood, etc}-—Cempa: les employed [n_th city and could be alternated choices within the satne ma k@t segment ITEM | SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2. COMPARABLE NO. 3. Date, Price ardDeta | NO recent sale previous recent sales |No previous recent sales | No previous recent sales Source, for pridxsales | found folind recorded found recorded found recorded within year of appitical} recordeciSC/FARESSC/FARE: ISC/FARES . ISC/FARES Analysis of any current a1 = 1, OF lating of the subject property and anstysis of any prior sales of subject and comparables within one year of the date of appraisal, ul listed within the past 12 months, Ail sales appear to have been adequately priced and x! INDICATED vay) COMPARISON APPROACH ..... Se $_ 195,06 INDIGATED YALUE BY INZOME APPROACH ible} Estimated Market Rent $ Nox Gross Rent Wiutiplic : N/A This appraisal Ik made {X/as is" |_J subject to the repsira, alerations, inspections or conditions listed below |_|subject to completion per plans and specifications. gq Conditions of Appratsal” The Subiect was Appraised in * AS IS * Conaition Final Reconciliation: = GREATEST WEIGHT WAS PLACED ON THE MARKET APPROACH TO VALUE AS IT EEST REFLECTS THE INTERACTIONS OF BUYERS AND SELLERS IN THE MARKET PLACE, THIS IS A SUMMARY REPORT, ‘The purpose of this appraisal Is to estimate the market value of the real Property that is eubject to this report, based on the above conditions and the certification, contingent and limiting conditions, and market value definition that ere stated in the attached Freddie Mac Form 439/Fannie Mae Form 10045 (Revised ine 1993 ). t (WE) ESTIMATE THE MARKET YALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF MARCH 30.2001 ON any kgf DATE OF THIS REPORT) TO BE $ 195,000 _ SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature RECONCILIATION Name Date Report Signed State Certification Or State License &. CICKFORMS Real Estate Appraisai Software by Bradford Technoioytes: B00 6228727 EXHIBIT__\___PAGE_! {Q-". Fannie Mae Form 1004 (6-93) ra ner vo + Address. s i 17862 121 TERRACE N oO, | LOXAHATCHEE S S 4 wpe ce Noo j a ret | EXHipir | Boy Pace] S sb f ; ae ek C3 Qs s