STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE COMMISSION S “a 7 we FLORIDA DEPARTMENT OF BUSINESS he ¢ S a AND PROFESSIONAL REGULATION, Kb, - *O DIVISION OF REAL ESTATE, Coe, * OG Belg On, th Petitioner, Go 7, % a vs. FDBPR Case N° 2002013565 2002005511 CHARLES EDWARD WHEELER, to — Nipt.g pr Respondent. C 5 2) Y ( | [- ad / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (“Petitioner”) files this Administrative Complaint against Charles Edward Wheeler (“Respondent”) 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 is and was at all times material hereto a licensed Florida real estate sales associate, issued license number 664248 in accordance with Chapter 475 of the Florida Statutes. 3. The last license issued was as an active sales associate with Adams Homes Relaty, Inc., 5508-B North W. Street, Pensacola, Florida 32505. FDBPR ys Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint 4. At all times material, Respondent was not a licensed contractor. 5. Atall times material, Respondent was an employee of Brevard Builders Group “BBG”. 6. At all times material, BBG did not have a qualified contractor. 7. On or about June 2, 2000, Respondent executed a construction agreement whereby Respondent’s company, BBG, agreed to contract for the construction of a residential property for William and Mary Ann Stanley. A copy of the agreement is attached hereto and incorporated herein as Exhibit 1. 8. Said Construction agreement did not state that BBG would receive a 7% for marketing expenses. 9. BBG did receive a fee and or commission in said transaction. A copy of the settlement statement is attached hereto and incorporated herein as Exhibit 2. COUNT I Based upon the foregoing, Respondent 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 II Based upon the foregoing, Respondent is guilty of making misleading, deceptive, or fraudulent representations in or related to the practice of the licensee’s profession in violation of Section 455.227(1)(a), Florida Statutes. FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020012565 Administrative Complaint COUNT Il Based upon the foregoing, Respondent is guilty of making deceptive, untrue, or fraudulent representations in or related to the practice of a profession or employing a trick or scheme in or related to the practice of a profession in violation of Section 455.227(1)(m), Florida Statutes. FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 10. Petitioner realleges and incorporates herein Paragraphs One through Five above. 11. On or about June 20, 2000, Respondent executed a construction agreement whereby Respondent’s company, BBG, agreed to contract for the construction of a residential property for John Thomas. A copy of the agreement is attached hereto and incorporated herein as Exhibit 3. 12. Said Construction agreement did not state that BBG would receive 7% for marketing expenses. 13. BBG did receive a fee and or commission in said transaction. A copy of the settlement statement is attached hereto and incorporated herein as Exhibit 4. COUNT IV Based upon the foregoing, Respondent 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 V Based upon the foregoing, Respondent is guilty of making misleading, deceptive, or fraudulent representations in or related to the practice of the licensee’s profession in violation of Section 3 FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint 455.227(1)(a), Florida Statutes. COUNT VI Based upon the foregoing, Respondent is guilty of making deceptive, untrue, or fraudulent representations in or related to the practice of a profession or employing a trick or scheme in or related to the practice of a profession in violation of Section 455.227(1)(m), Florida Statutes. FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 14. Petitioner realleges and incorporates herein Paragraphs One through Five above. 15. On or about July 23, 2000, Respondent executed a construction agreement whereby Respondent’s company, BBG, agreed to contract for the construction of a residential property for Rueben and LaVerne Narmore. A copy of the agreement is attached hereto and incorporated herein as Exhibit 5. 16. Said Construction agreement did not state that BBG would receive 7% for marketing expenses. 17. BBG did receive a fee and or commission in said transaction. COUNT VII Based upon the foregoing, Respondent 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 VII Based upon the foregoing, Respondent is guilty of making misleading, deceptive, or fraudulent 4 FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint representations in or related to the practice of the licensee’s profession in violation of Section 455.227(1)(a), Florida Statutes. COUNT IX Based upon the foregoing, Respondent is guilty of making deceptive, untrue, or fraudulent representations in or related to the practice of a profession or employing a trick or scheme in or related to the practice of a profession in violation of Section 455.227(1)(m), Florida Statutes. FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 18. Petitioner realleges and incorporates herein Paragraphs One through Five above. 19. On or about June 11, 2002, Respondent entered a plea of nolo contendere to one count of contracting without a license in Brevard County, Florida in case number 05-2001MM-057346A. COUNT X Based upon the foregoing, Respondent 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 XI Based upon the foregoing, Respondent is guilty of making misleading, deceptive, or fraudulent representations in or related to the practice of the licensee’s profession in violation of Section 455.227(1)(a), Florida Statutes. COUNT XII Based upon the foregoing, Respondent is guilty of being convicted or found guilty of, or 5 FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint entering a plea of nolo contendere to, regardless of adjudication, a crime in any jurisdiction which relates to the practice of, or the ability to practice, a licensee’s profession in violation of Section 455.227(1)(c), Florida Statutes. FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 20. Petitioner realleges and incorporates herein Paragraphs One through Five above. 21. On or about June 11, 2002, Respondent entered a plea of nolo contendere to one count of contracting without a license in Brevard County, Florida in case number 05-2001-MM-057342A. COUNT XI Based upon the foregoing, Respondent 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 XIV Based upon the foregoing, Respondent is guilty of making misleading, deceptive, or fraudulent representations in or related to the practice of the licensee’s profession in violation of Section 455.227(1)(a), Florida Statutes. COUNT XV Based upon the foregoing, Respondent is guilty of being convicted or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, a crime in any jurisdiction which relates to the practice of, or the ability to practice, a licensee’s profession in violation of Section 455.227(1)(c), Florida Statutes. FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 22. Petitioner realleges and incorporates herein Paragraphs One through Five above. 23. On or about June 11, 2002, Respondent entered a plea of nolo contendere in to one count of contracting without a license in Brevard County, Florida in case number 05-2001-MM-064550A. COUNT XVI Based upon the foregoing, Respondent 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 XVII Based upon the foregoing, Respondent is guilty of making misleading, deceptive, or fraudulent representations in or related to the practice of the licensee’s profession in violation of Section 455.227(1)(a), Florida Statutes. COUNT XVIII Based upon the foregoing, Respondent is guilty of being convicted or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, a crime in any jurisdiction which relates to the practice of, or the ability to practice, a licensee’s profession in violation of Section 455.227(1)(c), Florida Statutes. FURTHER ESSENTIAL ALLEGATIONS OF MATERIAL FACT 24. Petitioner realleges and incorporates herein Paragraphs One through Five above. FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint 25. On or about June 11, 2002, Respondent entered a plea of nolo contendere in to one count of contracting without a license in Brevard County, Florida in case number 05-2002-MM-055794A. COUNT XIX Based upon the foregoing, Respondent 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 XxX Based upon the foregoing, Respondent is guilty of making misleading, deceptive, or fraudulent representations in or related to the practice of the licensee’s profession in violation of Section 455.227(1)(a), Florida Statutes. COUNT XXI Based upon the foregoing, Respondent is guilty of being convicted or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, a crime in any jurisdiction which relates to the practice of, or the ability to practice, a licensee’s profession in violation of Section 455.227(1)(c), 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 8 FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint 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 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. FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint SIGNED this_/3 day of __/Dypserm bor _ , 2003. _— a ~<_Z2s of Business and Professional Regulation By: Jason Steele Director, Division of Real Estate FEL LE D : ATTORNEY FOR PETITIONER Department of Professional Regulatiq: Division of Real Estate James P. Harwood, Senior Attorney 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 JPH/k PCP: NH/LJ 11/03 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 10 FDBPR vs Charles Edward Wheeler FDBPR Case N° 20020013565 Administrative Complaint 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. Jan O8 U2 lU:¢sa Wika mse wuanae --- FILED 1H Wt) Puy ; : OWASJON OF ali construction agreement “The Agreement” is made and entered into as of the. H RATIVEday of Live. , ALOE dy and between Brevard Builders Group, Inc. Bayh Re Aind reveiw a4 ff? STS f _the buyer. street address A _home pho! 77 7- DONDE city, state, zip D,, BAZ Avork phone _ Construction Agreement PARTIES AGREE THAT THE SELLER WILL CONTRACT FOR THE CONSTRUCTION OF A SINGLE FAMILY RESIDENCE FOR THE BUYER, TO BE BUILT BY AN APPROVED BBG BUILDER AND THAT SELLER MAY ASSIGN THIS AGREEMENT TO THAT BUILDER AND BE RELIEVED OF ANY AND ALL OBLIGATIONS TO THE BUYER, OR BUILDER. Buyers’ residence is to be built on the property of &. Lex a Township , Range Section , Block , Lot _o subdivision located at, _Brevard County, Florida. Residence shal! contain approximately: 45 ¢ 6) OO¢ D —_ square feet of air conditioned living area @$ ' 7 Per square foot SOO —_ square feet of non-air conditioned, enclosed area @ sqp per square foot @x. RAD - square feet of under cover, but not enclosed WhO Axx wen Af. AAC.CO M Cost_ oe / A SF yaa “= {to be adjusted by “per square foot” formula, per final plan) per square foot Lotcost_ Lot clearing & fill (allowance) _ AYE __ Options 7e do Aer meee! _-Depost Ba. BAIMHO— _ BBG Fee PALA — . Balance to be paid at closing Lo, 3 &7- FACES For good and valuable consideration it is mutually agreed as follows: Builder will provide all items reflected in the attached plans, specifications and addendum approved and initialed by seller and buyer and builder shall furnish all labor, materials, equipment, supplies and other items necessary for the proper campletian ef WEE BACIAFLLAINT EXHIBIT #__[. _ PAGE ___| OF une "7p pace 422 Van VO Ve avenwe wee eee ee June Iooe Builder agrees to deliver the finished residence to the owner / 5O days after completion of the foundation, except when delayed by weather, material shortages, governmental agency requirements, sub contractor delays, or other such causes not directly under the control of builder . Buyer may from time to time and with mutual agreement with seller make alterations to or deviations from / the plans. Seller will require a written change order to be signed by both parties with an agreed fee of $100 per change order form, plus actual cost of changes to be paid in advance. Builder shall be allowed additional time to complete such changes. Seller has the right to make changes at sellers’ discretion on any plans, specifications, or house placement on lot to improve the construction of the home. All such changes shall be for items of equal or greater value and buyer will be notified of any necessary changes. Should changes be required by the subdivision’s deed restrictions or municipal or other governmental authorities having jurisdiction over construction practices, such changes will be made at owners’ expense and will be paid to the builder prior to c/o being issued, The builder will be allowed additional time to complete such changes. : It is agreed between the parties that allowances are estimates only, and will be adjusted to actual costs when completed. Buyer agrees to make application for a construction - permanent loan within seven days of signing of this ~ agreement. Buyer agrees to use reasonable diligence to obtain the loan commitment and to close the loan. Buyer agrees that all draw checks will be made directly to BBG or its assignee, the builder, only, and that the builder will receive 10% of the construction cost at closing of the construction-perm loan. Buyer will pay for Builders Risk insurance during the construction period as well as any and all other costs related to this agreement including all closing costs. Builder is not aware of problems associated with Radon gas in the construction area. Radon gas is unpredictable and may change with time after construction of this residence. The builder shall not be responsible for Radon gas levels at time of buyers acceptance of residence or in the future. By closing the purchase of this property, buyer will be deemed to have released the builder from any and all claims and liabilities’ related to or arising from the presence of radon and from any and all responsibility for mitigating any elevated levels of radon gas or other environmental hazards, that may be discovered on the property. - Iv is expressly agreed between the parties that the buyer shall not have possession of the premises nor be entitled to use, occupancy, or benefits of the residence described here-in prior to delivery of the certificate of occupancy by the Builder, or until all of the terms and conditions of the buyer have been fully carried out and completed, Builder will deliver standard affidavit of lien free status when finished. There are no warranties expressed, implied or otherwise arising under this contract, state or federal law except those specifically set forth in that document commonly known as the one year, “ Preferred Builder’s Warranty”. All other builder warranties expressed or implied, of any kind, nature or sort what-so-ever, are hereby waived. The warranties of equipment and appliances supplied with this residence will be passed ‘through to the buyer, at the time of settlement. Should the buyer wish to cancel this contract for any reason prior to the commencement of construction, it 1s hereby agreed that the BBG Punt BIS = CHEBEAIN Virect out of pocket, expenses shall be retained by BBG and are nonffxiundabledo buyyr. Buyer shalf not be responsible to seller for any other sums. eS PAGE 2 OF ever 76 pace 43 ~ Duna 2.900 Parties hereby acknowledge that this “construction agreement” and sale was brought about solely by Brevard Builders UD. Inc., and that no outside real estate broker or sales person other than _ yy 2 : was the procuring cause of this sale and only a BBG officer or manager is authorized to approve for the seller. . . t This agreement supersedes and replaces any contracts , oral or written pertaining to this Construction Agreement. ADMINISTRATIVE COMPLAINT EXHIBIT # PAGE? oor EXHIBITT___/6 pace pg | FFP _ EC wbiT E f - 7 7) Construction Agreement Ce . This construction agreement “The Agreement” is made and entered into 2s of he day of by and between Brevard Builders Group, Inc. (BBG), the Yeller and awmT the buyer Vea 7G FIT - Boe work phone | i ees PARTIES AGREE THAT THE SELLER WILL CONTRACT FOR THE CON STRUCTION OF A . SINGLE FAMILY RESIDENCE FOR THE BUYER, TO BE BUILT BY AN APPROVED BBG BUILDER AND THAT SELLER MAY ASSIGN THIS AGREEMENT TO THAT BUILDER AND BE RELIEVED OF ANY AND ALL OBLIGATIONS TO THE BUYER, OR BUILDER... Buyers’ residence is 10 be built on the property of 8 peer _ Township. , Range , Section , Block, , Lot . , « ’ “~ subdivision, Y les Sat Ar. located at, ___ Brevard County, Florida. Residence shail contain approximately: 4 g g square feet of air conditioned living area @ $ per square foot 5 ED square feet of non-air conditioned, enclosed area @ $ per square foot ou 5 Ov-__ square feet of under cover, but not enclosed @$ _ per square foot Cost a 13, \ L y " (49 be adjusted by “per square foot” formula, per final plan) Lot cost ] B, OOP- Lot clearing & fill (allowance) NMI L (ia Options x &, &2 a Deposit Fux @ OR, OOO". BBG Fee. # & SO- Balance to be paid at closing 374 ) LEX For good and valuable consideration it is mutually agreed as follows: Builder will provide all items reflected in the attached plans, specifications and addcadum approved and _~ initialed by seller and buyer 2 eit ovis a equipment, supplies and other iiems SMA eo _aecessary for the proper complenen, a ne project. { PAGE 4 OF EXHIBIT. /0 PAGE 45S @-1. GOOD FAITH ESTIMATE OF BORROWER'S SETTLEMENT COSTS APPLICANT ("You", “Your") LENDER ("a") - “ANLLIAM A STANLEY HARBOR FEDERAL SAVINGS BANK \ f a ) RYANN STANLEY P.O. BOX 243 ; y &) mWALAPEG ROAD FORT PIERCE, FL 34954-0249 2) 0° SATELLITE BEACH, FL 32937 Date of this Estimate 07/31/2000 Loan Program Conventional = iy Lo zy Term 360 ; Rate 7.8750 %; Origination Fee 0.5000 %; Discount Fee ; 4 ‘Purchase Price 1Value $ 370,000.00 ‘Loan Amount $ 240,008-67 B66, eo@ Loan to Value =!) 94.9000 % Property Address MERRITT ISLAND, MERRITT ISLAND, FL 32952 The information provided below reflects estimates of the charges which you are likely to incur at the settlement of your loan. The fees listed are estimates - the actual charges may be more or less. Your transaction may not involve a fee for every item listed. The numbers listed beside the estimates generally correspond to the numbered lines contained in the HUD-1 or HUD-1A settlement statement which you will ivi tt! t. The HUO-1 or HUD-1A settlement statement will show you the actual cost for items paid at settlement. . 1006. ; ; - 5 : Settlement Fee sha: Abstract or Title Search £4103." Title Examinatioi 1104. Title Insurance Binder "4105. “Document Préparation Fee": 1106. Notary Fee ~ # “Attorney's Fee. Title Insurance “ENOORSEMENTS City / County Tax / Stamps Désd ge res Release$S . Stale Tax / Stamps Deed $ : NOTICE OF COMME: months at$_ émonth e Mortgage tnsurar : Survey “Pest Inspection EXPRESS MAIL “months at $ /month /City Property Taxes . months ag : , imonth 1005... ‘Annual Assessments oe months at $ ‘month EST. MONTHLY PMT: EP. 7 OW . DEERE ANALYSIS OF ESTIMATED ae Inte — SETTLEMENT CHARGES: £0.00 | 4400, Total Estimated 0.00 Settlement Charges: $ 6,219.00 0.00 | toss: Prepaid Interest 249.33 and Escrows $ 0.00 her Estimated ettlement Charges: $ 6,219.00 ICE IS REQUIRED. Listed _balow are providers of service which we § are based upon the corresponding charge of the below designated ¢ —_ Total Pmt, 2,714.87 _ Total Ppds. a Mist THIS SECTION TO BE COMPLETED ONLY IF A PARTICULAFEBGG@MRIGR GF S tequire you use. The charges or ranges indicated in the Good Faith Estimate a providers “PAGE A. SETTLEMENT STATEMENT U.S. Depariment of Housing and Urtan Development = ry rormeny ray ae ee aes aya ROVE: tra wea scanner pars moneda arm a an Re OC met POC toe vad anats Na cman ter peer ee soe boos esate hha prevents Sear eersr etry rae Vesa Ser aS ene sane 209 cas war a. > 0, ax 20 2 wee 100 resin Yume, A eed he at sam SATELLITE 0, OEE Cry emernrrens Fue TIME § 420m Com, 00s wats OA emit rane. nz rasa Sac WO 8 Canoe man HP jaatit ume. hows m2 7 SumWAAY OF BORROWERS TRANSACTION: SUMMARY OF SELLER'S TRANSACTION: Tee Grose Amount Gue Fem Sovrower 2 _ 0 crs nenne TO tut ; ' ee eee . ST 3 3 , = >} a rota Pao wy 40m ponRcwen . ' a Cann Ai Seitarnend From af Yo Baiiewer {ese Cann di Seteoment Toor From Seite Ot ve amr ta vee meres oe 12 J TET Beet Cee moet aw tes TH Se MaKe oaT ETE ADMINISTRATIVE COMPLAINT. EXHIBIT #__ed. PACE __ exist. /0__pace__ 45 F- serve sseuent_ mc t Tras aT Paw Ee Fuoe At | PUNE A IPI G FUNOS AT | FUNOR AT ~ Sern eMEnT] = an 7 — “ Py “~ cis En REGURED BUEN TS EASA HET Gun 4 a =e 7 ees Se a tn a = . RESERVES BEPOSTED WITH CENGER TUR i sr eee Ss: = Tas ror et oe rat Cay seme, ee mot = GR_pot sane = = Ta ors =~ ae gee lene Bree ree De ree ee ee wean hare REN Gat Ry eo ADMINISTRAT ; RATIVE CO @ EXHIBIT # OMPLAINT PA ATIACIN AA Construction Agreement . ; . Bom. This construction agreement “The Agreement” is made and entered into as of the ___day of by and between Brevard Bui Group, Inc. (BBG), the seller and OO kK TH ag> the buyer. street address 3 S ! © dane. . home phoré 3A / ) US 7- OR: city, state, zip mM. 22! work phone — # Tu ~ G3 &j& : CAD O770) 357 EQ? PARTIES AGREE THAT THE SELLER WILL CONTRACT FOR THE CONSTRUCTION OF A SINGLE FAMILY RESIDENCE FOR THE BUYER, TO BE BUILT BY AN APPROVED BBG BUILDER AND THAT SELLER MAY ASSIGN THIS AGREEMENT TO THAT BUILDER AND BE RELIEVED OF ANY AND ALL OBLIGATIONS TO THE BUYER, OR BUILDER. Buyers’ residence is to be built on the property of Biye, Township , Range Section, Block , Lot ES 7 > subdivision Seas 4 Rie Alay located at, ___ Brevard County, Florida. Residence shall contain approximately: 5 ZX | 8 square feet of air conditioned living area @ $_ 49 per square foot 2 4 square feet of non-air conditioned, enclosed area @ $_ . per square foot Os2 square feet of under cover, but not enclosed @s_ [Y. per square foot Cost | 23 } HQ [ ™. (to be adjusted by “per square foot” formula, per final plan) Lot cost Lot clearing & fill (allowance) Ey DOOW Onion 73, HOt Oty aapeie Ken. _ BBG Fee a Spr Balance to be paid at closing (=) SAR - £ For good and valuable consideration It ts mutually agreed as follows: Builder will provide all items reflected in the attached plans, specifications and addendum approved and initialed by seller and buyer and builder shall furnish all labor, materials, equipment, supplies and other item necessary for the proper completion of the project. ADMINISTRATIVE COMPLAINT. EXANSIT fe ne ee PAGE |. oF SXHIBIT___/ > pase S53" Builder agrees to deliver the finished residence to the owner __ / EZ D days after completion of the foundation, except when delayed by weather, material shortages, governmental agency requirements, sub contractor delays, or other such causes not directly under the control of builder . Buyer may from time to time and with mutual agreement with seller make altcrations to or deviations from the plans. Seller will require a written change order to be signed by both parties with an agreed fee of $100 per change order form, plus actual cost of changes to be paid in advance. Builder shall be allowed, additional time to complete such changes. Selicr has the right to make changes at sellers’ discretion on any plans, specifications, or house placement on lot to improve the construction of the home. All such changes shall be for items of equal or greater value and buyer will be notified of any necessary changes. Should changes be required by the subdivision’s deed restrictions or municipal or other governmental authorities having jurisdiction over construction practices, such changes will be made at owners’ expense and will be paid to ihe builder prior to c/o being issued. The builder will be allowed additional time to complete such changes. It is agreed between the parties that allowances are estimates only, and will be adjusted to actual costs when completed. Buyer agrees to make application for a construction - permanent loan within seven days of sigaing of this —— agreement. Buyer agrees to use reasonable diligence to obtain the loan commitment and to close the loan. Buyer agrees that all draw checks will be made directly to BBG or its assignee, the builder, only, and that the builder will receive 10% of the construction cost at closing of the construction-perm loan. Buyer will pay for Builders Risk insurance during the construction period as well as any and all other costs related to this agreement including all closing costs. To, Builder is not aware of problems associated with Radon gas in the construction area. Radon gas is — unpredictable and may change with time after construction of this residence. The builder shall rot be responsible for Radon gas levels at time of buyers acceptance of residence or in the future. By closing the purchase of this property, buyer will be deemed to have released the builder from any and all claims and liabilities’ related to or arising from the presence of radon and from any and all responsibility for mitigating any elevated levels of radon gas or other environmental hazards, that may be discovered on the property. It is expressly agreed between the parties that the buyer shall not have possession of the premises nor be entitled to use, occupancy, or benefits of the residence described here-in prior to delivery of the certificate of occupancy by the Builder, or until all of the terms and conditions of the buyer have been fully carried out and completed. Builder will deliver standard affidavit of lien free status when finished. There are no warranties expressed, implied or otherwise arising under this contract, state or federal law except those specifically set forth in that document commonly known as the one year, “ Preferred Builder’s Warranty”. All other builder warranties expressed or implied, of any kind, nature or sort what-so-ever, are hereby waived. The warranties of equipment and appliances supplied with this residence will be passed through to the buyer, at the time of settlement. Should the buyer wish to cancel this contract for any reason prior to the commencement of construction, it is hereby agreed that the BBG fee-ofigav yx SO sphas-any-direct out of pocket, expenses shall be retained by BBG and are non-refuny ple tob zo Buyer shall not be responsible to seller for any other sums. PAGE Exmerr | />) Oo pace SSH Parties hereby acknowledge that this “construction agreement” and sale was brought abo solely by Brevard Builgers Groyp, Inc., and that no outside real estate broker or sales person other than ewe, was the procuring cause of this sale and only a BBG officer or manager is authorized to approve for the seller. This agreement supersedes and replaces any contracts , oral or written pertaining to this Construction | Agreement. sions tis OPED 74 AY ** wy a Yee AED Buyer Buyer Seller, Brevard Builders Group, Inc. by a Title a eS r - - ADMINISTRA... EXHIBIT ~~ PAGE 2. messes OF pe CES EXHIBIT 7% page Sse A. SETTLEMENT STATEMENT U.S. Department of Housing and Urban Development OMG No. 2502-0265 {B. Type of Loan + LWA 2 __benta9 X Conv Une [ew bus numoar 1 yan Hesnber @ Murigige Inewance Gare Nomber ov 3 _ Cony ime 00-53224 372008 C. NOTE: Thus torm is furnished to give you a statement of actual saitigment costs. Amounts pax to and by (he setiiement agent are shown. llams marked (P.0.C.) were paid outside the closmg; they are shown here for information Purposes and aie not inckided in the totals. 0. Name and Addrass of Borrower E. Name and Address of Selier + F. Name and Adaress of Lander JON C. THOHAS PARK AVENUE CUSTOM HOME BUILDERS INC. SPACE COAST CREDIT UNION-HORTGAGE OLANE K. THOMAS DEPARTMENT 3062 SWEET PINE OR. 3510 SERENITY LANE MELBOURNE, FL 32935 MELBOURNE. FL 32934 20 S. WICKHAH ROAD HELBOURNE, FL 32904 G, Proparty Location H. Settlement Agent ISLAND TITLE & ESCROW CORP, 6220 ANCHOR LANE ROCKLEDGE. FL 32955 Placa of Settlement 2425 N. COURTENAY PKWY #107 MERRITT ISLAND, FLORIDA 32953 1. Settiament Date 07/31/00 J, SUMMARY OF BORROWER'S TRANSACTION: K. SUMMARY OF SELLER'S TRANSACTION: 100. Gross Amount Due From Borrower 400. Gross Amount Due To Seller 101. Contract sales price * 150,825.00] 401. Contract seies pre 102, Personal prop 402. Personal propanty 103. Setilament charges to borrower {line 1400) 3,326.50] 403. 104. LOT PAYOFF 22,036.43] 404. 105. 406, Adjustments for Items pald by seller In advance Adjustments for Items paid by seller | 106. City/town taxes lo 406. City/town taxes 107, County taxes to 407. County taxes cy 108, Assessments 408. Assessments 410. au. 412, 8 120. GROSS AMOUNT QUE FROM BORROWEA 176. 187.93] 420. GROSS AMOUNT DUE TO SELLEA 200. Amounts Paid By or in Behalf of Borrower soo. Reductions In Amount Due To Seller 201. Deposit or aamest mo S01. Excess Deposit (see instructions: 202. Principal amount of new boan(s) 600.00} 502. Settlement charges to seller (line 1400) isting loan(s) taken subject to 503. Existing loan(s) taken subject to $04. Payoff of frst mortgage ban 8 £ 8 a2 3 ais 8 205. 505. Payoll of second mortgage loan 206. HEHBER REWARDS 506. 207. PROMOTIONAL COUPON $07. $08. 10% ADDITIONAL DEPOSIT =o ei 2 $03. FUN TO LIP ACCOUNT Adjustments for items unpald by seller Adjustments for Items unpald by 210. CityRown taxes to 510. Cityftown taxes to _ County taxes to 511. County taxes to . Assessments to 512. Assessments to 213. $13. 214. 534, 215. 515. [216. 516. 217. 517, 218. $18. 219. 519 220. TOTAL PAID BY/FOR BORROWER 143.000 00] $20. TOTAL REDUCTION AMOUNT DUE SELLEA | 150,825.00 300. Cash At Settlement From or To Borrower 00. Cash At Settlement To or From Seller 301, Gross amount due fom barrows (line 120) 176. 187. 93| 601. Gross amounl dua to seller (ine 420) 150,825.00 302. Less amounts paid by/tor borrower {ting 220) 143.000.00] 602. Less reduction amount due sell {line 520) 150 825.00 303_CASH FROM. BORROWER 33,187.93] 663. CASH TO SELLEA ADMINISTRATIVE COMPLAINT EXHIBIT 4 PASE _ C OF 07-31-2000 at 11:18 AM RESPA, H8 4305.2 - REV. HUD-1 (3/86) EXHISIT_§ 7%. WS UEPAHIMENT OF HOUSING ANO URBAN De VELOPMENT SETTLEMENT STATEMENT PAGE 2 704 goo ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. Items 801. Loan Origination Fee * 802 Laan Discount * 803. Appraisal Fee lo TUTTLE -ARHFIELD- WAGNER $250 POC(8) 803. Credd Aaport to CREDET DATA SERVICES. IK. 60.008 B05 Lender's inspection Fee to SPACE COAST CREDIT UNION-MORTGAGE OEPARTHE 806 Mig Ins. Apphcation Fee ta 807. Assumption Fee 10 ga. TAX SERVICE CONTRACT SPACE COAST CREDIT UNION-HORTGAGE DEPARTHE 809 UNOERMRITING FEE SPACE COAST CREDIT UNIOH-MORTGAGE DEPARTME 810. PROCESSING FEE SPACE COAST CREDIT UNION-HORTGAGE DEPARTME . 811, FLOOD DETERMINATION FEE SPACE COAST CREDIT UNION-HORTGAGE DEPARTHE 812. COURIER FEE SPACE COAST CREDIT UNION-MORTGAGE DEPARTHE 813 614 [rang 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901, Interast trom to @s% day Days 902. Mantgapa Insurance Pramium for to 903. Hazard Insurance Premium for 1 yrs _ to PRUDENTIAL INSURANCE, 4. 905. 1000. RESERVES DEPOSITED WITH LENDER FOR 1001. Hazard insurance 9 mos 35.08 imo. [1006 1100. TITLE CHARGES 1106. Notary fees 1107, Attornay's tees incudes above tems No: 1108. Tia insurance to TSLAND TETLE & ESCROW CORP. {incudes above itwms No: ) 1105. Lender's coverage $ 142,600.00 ---- 720.62 1110, Owner's coverage $ 112. FL FORM 9 after construction ISLAND TITLE & ESCROW CORP. 1113, ALTA 5.1 & 6.1 ENDORSEMENTS ISLAND TITLE & ESCROW CORP. 12¢. GOVERNMENT RECORDING AND TRANSFER CHARGES 7 Mortgage $ 69.00 i Mortgage $ i Mongege 3 499.10 i; Raleases $ 3. Stare tax/stamos 4208. NOTICE OF COMMENCEMENT 1390. ADDITIONAL SETTLEMENT CHARGES 1305, Survey to 1302. Pasi mspection to 1302_ OVERNIGHT MAIL FEE ESLANO TITLE & ESCROW CORP. 1304, RELEASE FEE {1308 130E 1307 1306 1400 TOTAL SETTLEMENT CHARGES (enter on lines 103 and $02. Seciions J and K) ESLANOD TITLE & ESCROW CORP. i nd EVENS A 1 PRORATION OF IME TARED 18 NECESSARY WHEN THE TAX 8418 FOR 1999 ARE PREPARED. TNE PARIS AGREE TO HANDLE SAID FE-PRORATION BET WERN THEMSLt VE 2 Calauhy cowemed the MUD? Syitiemant Statement ang of al ras, jeaig made os my AZEOUNE OF By Me MH Ihe tangachon Ih jong Corporation Y. @ICTTXRO TROMPSON, Prendent Jorn C THOMAS ~ Boyer Bar blake kK THoMag~ ~~ ENNNNTUNTNNNNNNRNINE 7171-703 ( To the Geet at my Anuwieoye ine HUD § Setueinans 31 sheet VE Better te Mone WY abcde bs wie Linge wnicn ware rocavea ane have bess ISLANG TLE 8 TSCROW Cone” > wateninis Apu eng abimdanionm Ren silind aun Comactinn 620 nGuds 4 fine and ay erie) RESPAS TE 4305 2 - REV. HUD 1 (3/86) EXHIBIT tL. SETTLEMENT CHARGES: FILE #: 00 53224 PAID FROM | PAID FROM 700_ TOTAL SALES/BROKER'S COMMISSION based on price 3 180.825.0008 . 9.000 00 /BORAOWER'S} SELLER'S Dwision of commission (line 700) as follows: FUNCS AT FUNDS AT 701 $ 9000.00 to BREVARD BUILDERS GROUP. INC. SETTLEMENT /SETTLEMENT 702 3 to 703 Commission paid ai Settiement 9,000.00; Ge Initial contract signed with Brevard Builders Group (hereinafter referred to as BBG) on December 29, 1999 (Attachment “A”). Subsequent. contract signed May 20, 2000 (Attachment “B”’). Final contract signed June 20, 2000 with a total value of $152,075 (deposit fee and balance) (Attachment “C”). BBG assigned build to Park Avenue Custom Home Builders on March 15, 2000 (we did not sign this agreement and were not aware of it until May 23, 2001 when it was requested and received from our lender) (Attachment “D’). In-work plans that were not signed off by us were submitted for permitting.on or about July 15, 2000. Brevard County rejected them due to software causing misalignment of much of the left-hand side of the drawing. BBG draftsman Rich Normyle worked with us to correct the plans, which were signed by us on August 16, 2000. After being resubmitted, Brevard County issued Permit number C0102342 on September 27, 2000. Ground was broken in October 2000. Rough-in plumbing and electrical problems were pointed out by owners and corrected. Downdraft piping and gas lines for cooktop, clothes dryer, and hot water tank were missing; we had to ask them to install before pad was poured. Only the gas line for the cooktop was installed. (NOTE: part of the adjacent lot had been cleared in error and the house had originally been staked out halfway on adjacent lot.) Pad was poured on December 5, 2000. At this point we realized our extended ledge in the garage was missing. The block went up on or about December 13, 2000. The hurricane straps were installed on or about December 21, 2000. The trusses started to go up on January 3, 2001. At this time we noticed our stub-out for a wet bar on the enclosed porch was missing. The stub-out could not be added as there would be no way to add a drainage pipe without breaking up the pad. We also noticed that our ceilings in the foyer, dining: room, great room and enclosed portion of the patio were gr 4” flat instead of vaulted as specified in the site plans. : When we questioned Jorge Granados, Site Superintendent, he responded that they probably couldn't be engineered. (For the record, when we contacted the Trusswood Truss company on 2/12/01, we were told that the plans they used to build our trusses were dated 4/20/2000). Jorge Granados also stated on 12/8/2000 a garden window we had specified wceuldn’t pass inspection due to Florida Code, that a regular window would have to be installed and if we wanted to change it out later that was our prerogative. He also stated he anc Bill ADMINISTRATIVE COMPLAINT EXHIBIT # PAGE? OF EXHIBIT. fe PAGE 958 carmen Thompson would notate that for future use because they didn’t know about this particular type of window. Regarding same window, on 12/10/2000 Jorge Granados said the window supplier also said the window wouldn’t pass code and I would need to install 2 smaller ones. We-told him to install a regular window. On or about January 6, 2001 the framers started work. They neglected to install extra insulation we had paid for which was notated on our addendum sheet and we pointed it out to them. (NOTE: this extra insulation was later installed). On January 8, 2001 we discovered that the plans the framers were using were dated July 2000, in which the left side of our house was moved over. This also accounted for them not installing the extra insulation originally. We immediately notified Park Avenue Superintendent, Jorge Granados, Park Avenue owner Bill Thompson, and BBG owner Charlie Wheeler and were assured things would be taken care of. Framing was finished with our own personal set of final plans dated 8/2000. The windows started to be installed on January 10, 2001 and we noticed they looked odd, but said nothing. The front door - would not fit due to the opening being engineered wrong and the concrete and steel header was demolition sawed out to make the door fit (for the record, this was not the door BBG stated as standard; it was a Park Avenue standard and not one we wanted. We had to call the supplier ourselves to have this door picked up and pick out the correct. door). “Other smaller issues continued to arise. It was on February 5, 2001 when we realized that the front windows and flat ceilings were from old plans (circa April 2000 and/or July 2000) and we stopped construction on 2/7/01 until a solution could be reached. After a number of fruitless attempts (2/5/01, 2/12/01, 2/14/01, 2/21/01) we finally met with Charlie Wheeler of BBG on March 3, 2001 and presented him with a detailed list of defects in our house (Attachment “E”) (Bill Thompson was not available for this meeting). (NOTE: We ordered our lender to stop further disbursements from our account on 2/28/01.) We met with Charlie Wheeler again on 3/17/01 to discuss our list of defects and drop off copies of all our notice to owners and liens (again, Bill Thompson was not available). It became apparent that BBG and Park Avenue Custom Homes had no intention of correcting the defects in our house and we retained counsel on March 29, 2001 (Charles Schillinger, Esq.) On April 6, 2001 he sent our notice of defects to Bill Thompson, formally requesting a response and received none. On April 11, 2001 he sent both Charlie Wheeler and Bill Thompson a letter REGHRES ARS, G_ feb and thorough EXHIBIT # PAGE Gog. vo ae one exuipit___/2_ pace_SS% accounting of the construction of our home. Again, no response was received from either party. Finally, on April 23, 2001 letters of termination were sent to BBG and Park Avenue Custom Home Builders (Attachment’s “FE”, “G”, & “H%). Pursuant to the requirements of this complaint, and to the requirements of finishing our home, we are in the process of getting assessments and bids from other contractors. Emr Construction (license #BC2810) has given us a bid of $94,000 to complete the build. (NOTE: some items that were a ‘ standard in our contract with BBG and Park Avenue [i.e. solid surface countertops, window treatments and sprinkler system], were not bid to contain costs.) This bid of $94,000 is $30,000 more than is left in our account. Mr. Thompson has withdrawn $78,375.29 from our lender, leaving us $64,224.71 with which to finish our house. Additionally, we now have $24,320.59 in liens (with interest accruing monthly) and another $8,698.31 of bills owed to sub- contractors on supplies and/or ‘services who have not liened us to date. We have positively identified expenditures of ' $28,788.20 (this does not include the framers and block masons as they have not been identified to us). Of that money, $17,500 in undisclosed commissions went to BBG; $9,000 was not disclosed to us before being put in our closing paperwork and $6,500 was also not revealed to us and paid by Park Avenue Custom Homes Builders to BBG, we can only assume out of the builder’s draws. This leaves up to $49,587.09 of our money unaccounted for, in addition to the $24,320.59 in liens and $8,698.31 in unpaid bills. The liens are for supplies and services used early on in the building process, such as concrete and lumber. Mr. Thompson must have known that these bills were extremely overdue and yet he signed notarized draw affidavits that stated all lienors had been paid in full (Attachment “I”). This is a violation of FPL Statute 713.35, regarding making false documents (Attachment “J”). Additionally, three of the four falsified draw affidavits were notarized by Kathy Hendren Thompson, the wife of Bill Thompson (a violation of Notaries Public, Chapter 117.107 Prohibited Acts, Subsection (11)). . Additionally, at the time Kathy Hendren Thompson was notarizing these falsified documents, she was a corporate officer of Park Avenue Custom Home Builders, thereby making her a party to the financial transactions of the company and violating Notaries Public, Chapter 117.107 Prohibited Acts, Subsection (12) (Attachments “K”, “LY, & “M’). — awd MY ADMINISTRATIVE COMPLAIN EXHIBIT # PAGE Do terete nce ile, [ev PAGE, S60 EXHIB —— [i e oeiene We feel that Bill Thompson and Charlie and Kathy Wheeler, through their mishandling of the creation and distribution of plans, exhibited negligent behavior that led to the building defects that originally caused us to suspend construction. We feel that Charlie ‘and Kathy Wheeler acted as contractors without proper license in signing of the original and subsequent Construction Agreements (Attachment “N’). We feel that Charles and Kathy Wheeler failed to properly disclose commissions of $9,000 and $6,500 associated with the construction of our home. We feel that ' Bill Thompson falsified documents (Attachment “O”) in order to illegally obtain money from our lender. We feel Kathy Hendren Thompson illegally notarized those falsified documents. We.feel Bill Thompson mishandled monies which were to be used for our home (Attachment “P”), and illegally co-mingled monies from our account toward the building of other homes, as he builds greater than 10 homes per year —tattechment—“o"}, and as such is legally prevented from doing so. Coincidentally, during the same time frame, Bill and Kathy Thompson purchased a new ocean-going fishing boat, motor home, two trucks, and a new car. Additionally, Bill and Kathy Thompson, along with Jorge Granados and his wife, took vacations to Hawaii and Colorado. We are Attaching registered liens (Attachments “R”, “S”, “Tt, “U”, and “V’) against our property. We are also attaching a proposal from Emr Construction as required on the complaint form (Attachment “W”). We are attaching a copy of the check, which was our deposit to BBG (Attachment “X”). Also attached are printouts from the DBPR website showing license numbers of William D. Thompson, Charles Edward Wheeler, and Kathleen Jo Wheeler (Attachment “Y”). Finally, we have attached an excerpted page from a current BBG Construction Agreement, (Attachment “Z2”) which discloses they will receive a 7% commission for marketing purposes. This sentence was not part of any of the Construction Agreements we signed with BBG. ADMINISTRATIVE Cons EXHIBIT 4 PAGE (y YO a OF oem a exHipit__/2 pace Sb/ Uul uy Yu tu VUSte tie serv baake Poe awe we, Construction Agreement ryction agreement “The Agreement” is made and entered into as of the. 2 ES Ral day of ma ry and between Brevard Builders Group, Inc. (BBG), the seller and all 7 YUE ibe buyer, street address home phone. Ya os ~S FED _ city, state, zip 329 work phonic _ PARTIES AGREE THAT THE SELLER WILL CONTRACT FOR THE CONSTRUCTION OF A SINGLE FAMILY RESIDENCE FOR THE BUYER, TO BE BUILT BY AN APPROVED BBG BUILDER AND THAT SELLER MAY ASSIGN THIS AGREEMENT TO THAT BUILDER AND BE RELIEVED OF ANY AND ALL OBLIGATIONS TO THE BUYER, OR BUILDER. Buyers’ residence is to be built on the property of 3) Uni Fibs Pharece < __ Township , Range Section , Block, ___, Lot > subdivision located at, Brevard County, Florida, Residence shall contain approximately: . ] & 5 é > square feet of air conditioned living area @$ square foot OOD square feet of non-air conditioned, enclosed area @$_y ____ Def square foot ee a 5, D square feet of under cover, but not enclosed @$ Ln per square foot Cost_] 0 7 YO ~ | __. (to be adjusted by “per square foot” formula, per final plan) Lot cost Lot clearing & fill (allowance) G 2, LEO Options 727, UG b+ Deposit Fo(ph) GLREO- BBGYee PY JALD Balance to be paid at closing _/ 25, f7O— For good and valuable cousideration it is mutually agreed as follows: Builder will provide all items reflected in the attached plans, specifications and addendum approved and initialed by seller and buyer and builder shall furflielV/all bor matirials, eguipment, supplies and other items necessary for the proper completion of the projec xnisit 4 5 PAGE OF £532 UuUITUOTUU INU VOr4o mil dwrroy bdibe NOS ~ ) ane _ w+ Builder agrees to deliver the finished residence to the owner / if O ___ days after completion of ths foundation, except when delayed by weather, material shortages, governmental agency requirements, sub contractor delays, or other such causes not directly under the control of builder . Buyer may from time fo time and with mutual agreement with seller make alterations to or deviations from the plans. Seller will require a written change order to be signed by both parties with an agreed fee of $100 per change order form, plus actual cost of changes to be paid in advance. Builder shall be allowed additional time to complete such changes. Seller has the right to make changes at sellers’ discretion on any plans, specifications, or house placement on lot to improve the construction of the home. All such changes shall be for items of equal or greater value and buyer will be notified of any necessary changes, Should changes be required by the subdivision’s deed restrictions or municipal or other governmental authorities having jurisdiction over construction practices, such changes will be made at owners’ expense and will be paid to the builder prior to c/o being issued. The builder will be allowed additional time to complete such changes. It is agreed between the parties that allowances are estimates only, and will be adjusted to actual costs when completed, Buyer agrees to make application for 2 construction - permanent loan within seven days of signing of this agreement. Buyer agrees 10 use reasonable diligence to obtain the loan commitment and to close the Joan. Buyer agrees that all draw checks will be made directly to BBG or its assignee, the builder, only, Buyer will pay for Builders Risk insurance during the construction period as well as any and all other costs related to this agreement including all closing costs. Builder is not aware of problems associated with Radon gas in the construction arca. Radon gas is unpredictable and may change with time after construction of this residence. The builder shall not be responsible for Radon gas levels at time of buyers acceptance of residence or in the fiture. By closing the purchase of this property, buycr will be deemed to have released the builder from any and all claims and liabilities’ related to or arising from the presence of radon and from any and all responsibility for mitigating any elevated levels of radon gas or other environmental hazards, that may be discovered on the property. It is expressly agreed between the parties that the buyer shal! not have possession of the premises nor be entitled to usc, occupancy, or benefits of the residence described here-in prior to delivery of the certificate of occupancy by ihe Builder, or until all of the terms and conditions of the buyer have been fully carried out and completed, Builder will deliver standard affidavit of lien free status when finished, There are no warranties expressed, implied or otherwise arising under this contract, state or federal law except those specifically set forth in that document commonly known as the one year, “ Preferred Builder’s Warranty”, All other builder warranties expressed or implied, of any kind, nature or sort what-so-ever, are hereby waived, The warranties of equipment and appliancés supplied with this residence will be passed through to the buyer, ar the time of settlement. Should the buyer wish to cancel 1 for any reason prior to the commencement of construction, it is hereby apreed that the BBG fee of AO — Ins Hirect out of pocket expenses shall be retained by BBG and are non-4i bie tb buyer Boyt ot be responsible to seller for any other sums. EXHIBIT Ham ccuhuoese PAGE Zier OF nese Exum // pace 533 Parties hereby acknowledge that this “construction agreement” and sale was brought about olely by Brevard Builders Groupy Tno., and thay no outside real estate broker or sales person other than Bermeg! _ Vs, Vee bus — Was the procuring causw of this sale and only a BBG officer or manager is authorized to approve for the seller. This agreement supersedes and replaces any contracts , oral or written pertaining to this Construction Agreement. Signed this 7D AY day of OLD) Buyer Ne Zhe ey Buyer Seller, Brevard Builders Group, Inc. by Title addicind 887 P Nex- Ae 14,840" \ 5 oH) O&O FP reelase | (a __b Oba bn £43,870 "ef © pul Lote Sete B49 Oenpls& of Tr ose, 36 balls ‘Mota fees Calimet® AL BED (eens, ADMINISTRATIVE COMPLAINT EXHIBIT AS” A. SETTLEMENT SIAIbwoN! U.S. Department of nuswiny ~ ~vu cee cy . ; and Urban Development QO “t COPY OF the origina} te B. Type of Loan ; _is Tr: AAA. tf. FHA 2 FmHA 2. __ Cony. Unina. 4, Fils Number 7. Loan Number MORBIVC wRH 4A 5. X_ Goaw, ins “ 00-5458 0021870241 C. NOTE: This form is turnished to give you a statement of actual seiflemant costs. Amounts paid to and by the salliament agent are snown. Nems marked (P.0.C.) were paid oulside the closing; they are shown here for latormation purposes and are not included ln the tolals. 8, Monigag: D. Name and Address of Borrower &, Nama and Address al Seller F. Name and Address of Lender RUBEN B. NARHORE PARK AVENUE CUSTOM HOME BUILDERS INC. ‘SUNTRUST BANK LAVERNE NARHORE 3062 SWEET PINE OR. 350 N. Lake Destiny Road 680 NEVADA STREET HELBOURNE, FL 32935 Haitland, FL 32751 MELBOURNE, FL 32904 ~ —| G. Proparty Location H. Sattlamant Agent ISLAND TITLE & ESCROW CORP. 695 NEVADA STREET MELBOURNE, FL 32904 Place of Settlement 1, Sottiament . 2425 N, COURTENAY PKWY #107 Date _ o MERRITT ISLAND, FLORIDA 32953 10/05/00 J. SUMMARY OF BORROWER'S TRANSACTION: ~|_K. SUMMARY OF SELLER'S TRANSACTION: 100. Gross Amount Cue From Sorrower 400. Gross Amount Due To Seller 101, Contract sales pre 135,890.00] 401. Contract salos price 135,890.00 102, Persona! propany 402. Personal property 103. Settlement chargas to borrower (line 1400) 6,053.13] 403, 104 404 108. 405, Adjustments for items pald by seller in advance Adjustments for items _pald by setler in advance 106. City/town taxes to 406. City/town taxes: to { County taxes 407. County taxes. to Assessments 408. Assessments 141,943.11] 420. GROSS AMOUNT QUE TO SELLER 135,890.00 500. Reductions In Amount Due To Seller 201, Deposit or earnest 501. Excess Deposit (see Instructions) 202. Pclncipal ‘amount af sew loan(s) 141, 000,00] 502. Settlamant charges to seller (lindé400) 7,850.00 503. Existing loan(s) laken subject 10 504, Payoi! of first morigage loan ~ 505. Payot! of second mortgage loan | 506. FUNDS TO LIP ACCOUNT 115, 236,00 203. Existing loan(s) taken subject to 507. 208. 508, 209. “ 509. Adjustments for items unpaid by seller Adjustments for Items unpaid by seller 210. Cityhown taxes to 510, CityHown taxes to 211, County taxes lo 511, County taxes to 212, Assessments to 512. Assessments to 213, $13. 24. 514. 215. 515. (216, 516. - {8 ~_[s17. 218. $18. 219. 519, __| 220. TOTAL PAID BY/FOR, BORROWER 141,000.00] 520. TOTAL REDUCTION AMOUNT OUE SELLER 123,086.0 300, Cash At Settlement From or To Borrower 600. Cash At Settlement To or From Seller 901. Gross amount due from borrower {iine_120) 141,943.11] 601. Gross amount due to sallar (line 420) 135, 890.0 302, Less amounts pald by/or borrowariline 220) 141,000.00] 602. Less reductlon amount dus seller {line 520) 123,086.0 303. CASH FROM BORROWER 943.11} 603. CASH To SELLER 12,804.0 ADMINISTRATIVE COMPLAINT EXHIBIT # PAGE ae, ce OF ve Ove ER 10-05-2000 at 10:20 AM ; RESPA, HB 4305.2 - REV. HUD-1 (4/6) EXHIBIT. “JJ pane o> L. SELILEMENI CHAHGES: ~, FILE #: 00-5458 anal PAID FROM | PAID FROM 700, TOTAL SALES/BROKER'S COMMISSION basad on pre $ 135,690.00 = 7,850.00 /|BORROWER’S| SELLER'S Dwislon of commission (line 700) as foltows: FUNDS AT FUNDS AT 701. $ 7,850.00 to BREVARD BUILDERS GROUP, INC SETTLEMENT {SETTLEMENT j-202 $ to 703. Commission paid at Settlement 7,850.00 704, 600. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. Items. 801. Loan Originatlon Fea % 802. Loan Discount % | 803. Appraisal Fee to 604. Credit Report to SUNTRUST BANK 805, Lender's Inspection Fee to SURTRUST BANK 806. Mtg. Ins. Application Fee to 807. Assumption Fae to 808, FINAL INSPECTION SUNTRUST BANK 809, TAX SERVICE FEE VALUTREE REAL ESTATES SERVICES, LLC B10, UNDERWRITING FEE SUNTRUST BANK 811, APPLICATION FEE SUNTRUST BANK . 325.008 812, COURIER FEE ‘SUNTRUST BANK 813, FLOOD ZONE DETERKINATION AMERICAN SECURITY GROUP 614, FZ0 LIFE OF LOAN FEE AMERICAN SECURITY GROUP 815. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901. Interest from to @s tday Days 902, Mortgage Insurance Premium for to 903. Hazard Insurance Promium for 1_yrs to STATE FARH * 522.00} 904. . : 905. n 1000. RESERVES DEPOSITED WITH LENDER FOR ‘ 1001. Hazard Insurance mo.@$ imo. 1002, Morigage Insurance . mo.@$ mo. 1003. Clty property taxes mo.@$ imo. 2 1004, County proparty taxes SS mo.@$ tmo. 1005, Annual Assessments mo.@$ imo. 1006, FUTURE ESCROWS mo.@$ 2,211.00 1100. TITLE CHARGES 1101. Settlement or closing fee ® ISLAND TITLE & ESCROW CORP. 125.00 1103, Tite_examination ie TSLAND TITLE & ESCROW CORP. 29,00) 1104. Title insurance _binder to 1105, Document preparation to SUNTRUST BANK 210.00 1106, Notary fees to —~ 1107. Attorney's fees to (Includes _abova items No: ) 1108. Title Insurance to ISLAND TITLE & ESCROW CORP. 805.00: includes above Items No: ) 1109. Lender's coverage S 141,000.00 ---- 780.00 1110, Owner's coverage £ 135,890.00 ---- 25.00 111, ALTA 8.1 ENDORSEHENT TSLANO TITLE & ESCROW CORP. 25.00 $112, FL_9 (AFTER CONSTRUCTION) ISLAND TITLE & ESCROW CORP, 80.50} 1113, ALTA 6.1 ENDORSEMENT ISLAND TITLE & ESCROW CORP. : fe 25,00) 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. Recording fees Deed $ i Mortgage $ 109.50 __; Releases $ 1202, City/county/stamps Deed $ Mortgage $ 1203. State tax/stamps Deed $ = i Mortgage $ 493.50 1204. Intangible Tax_- 1205. DEED & NOTICE OF COMMENCEMENT 1300, ADDITIONAL SETTLEMENT CHARGES 1301. Survey to 1302. Pest inspection to 1303, OVERNIGHT MAIL FEE ISLAND TITLE & ESCROW CORP. 1304, PAY 2000 TAXES (ESTIMATE) ROO _NORTHCUTT, TAX COLLECTOR STRATIV 7,450.00 1400, TOTAL SETTLEMENT CHARGES (enter on lines 103 and 502, Sections J and K) IN_THE EVENT A RE-PRORATION OF THE TAXES IS NECESSARY WHEN THE TAX BILLS FOR 2000 ANE PREPANED, THE PARTIES AGREE TO HANDLE SAID RE-PRORATION BETWEEN THEMSELVES. I have ¢ vetully reviewad the HUD-1 Betliemant Sialament acd to the bes! ol my knowledge and beliel, Il In a tus and accurals elalement of all secelpte and diaburvementa made on my account or by me is thle Wansacilon, I further cerlily thal ‘of the HUD-1 Saltlement Slatemeni. _ GB DEAS INC., a Florida Corporation # aoe x a Ter Thys:Warrow at Araditere >t) A saADAO aro wer mys Sete fi To the bab of my Knowledge, the HUD-1 Sellamant Statement which i have prepatedjle a true and accurate ficegen ote fonds whieh were recelved and have been hg ys Ake He SL06 of wil be dlebursed by Ihe undersigned as part of Hermon of thie (rand owlngly make fale“) a Gnited Giates on this or any other simiar lorm. Penailies upon convietion can Include & fine and mane ta 1 lnpilvonment, For This Ye"U.8. Goce Section 1001 and Section 1040. 10-08-2000 at 10:26 AM “TT pace, Sth Ev! FESPA, HB 4305.2 - REV. HUD-1 (2/86) Pe & a ADMIMy é COMPLAINT May # STATE OF FLORIDA , <7) DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION 2g FLORIDA REAL ESTATE COMMISSION FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION DIVISION OF RELA ESTATE Petitioner. vs. CHARLES EDWARD WHEELER. FDBPR Case N° 2002005511 2003013565 > Fm Coo S&S —_ ate = Respondent, Za / Ben ras! an) re Zz or m PETITIONER'S FIRST REQUEST FOR ADMISSIONS TO: Richard Kane, Esquire 351 S. Lanvale Avenue Daytona Beach FL 32114 the date of service RESPONDENT is requested to answer each of the following requests for admissions, pursuant to Rules 1.370 and 1.340, Florida Rules of Civil Procedure, within thirty (30) days from 1. What is the name and address of the person answering these Petitioner's First Request For Admissions and Interrogatories, and, if applicable, the person's official position or relationship with the party to whom the admissions are directed? Ch rles © Whavhr ae FDBPR vs. Charles Edward Wheeler FDBPR Case N° 2002013565; 2001005511 Admissions 2. Respondent is and was at all times material hereto a licensed Florida real estate sales associate, issued license number 664248 in accordance with Chapter 475 of the Florida Statutes. Admit vA Deny __ If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the response given, please State as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtainable is insufficient to enable you to admit or deny. 3. The last license issued was as an active sales associate at Adams Homes Realty, Inc., 5508-B North W. Street, Pensacola, Florida 32505. - Admit Y Deny __ If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the response given, please State as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtainable is insufficient to enable vou to admit or deny. .- FDBPR vs. Charles Edward Wheeler FOBPR Case N° 2002013565; 2001005511 Admissions At all times material, Respondent, was not a licensed contractor. | Ohjes x doy, wigdeneh— AAI chan. FZ Ai tLe el tern - :o , ae. Le ove e < : taken, ALE © és 4: Li the ee LEP 7< gee LF va ae a “ A +L ded F & C04 gee of 2 cas verne TAL a De Lie wh for .ntd rea Lye e be ci Le 04 Lo AACE « o é Admit __ Deny __ aod ee lah Le TEES chet hey If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the response given, please state as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtainable is insufficient to enable you to admit or deny. 5. At all times material, Respondent was an employee of Brevard Builders Group “BBG.” Admit __ Deny YY If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the response given, please state as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtain is insufficient to wee you to admit or deny. . i c okt foes TWEE: oi A G a a or of proc ( he silt) eh Cereb cugpley. : ‘ —4 oe] FDBPR vs. Charles Edward Wheeler FDBPR Case N° 2002013565; 2001005511 Admissions 6. At all times material, BBG did not have a qualified contractor. Admit. Deny aA If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the response given, please state as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtainable is insufficient to enable you to admit or deny. - . } . abl Lb tie, Lbal- / Ba 4 td. P Leved J tem sw x / Let: 4 Taal - LL “oS ge Ledll ; Teleco, ae lee beet! LEG Le 2 . + FDBPR vs. Charles Edward Wheeler FDBPR Case N° 2002013565; 20010055114 Admissions 7. On or about June 2, 2000, Respondent executed a construction agreement whereby Respondent’s company, BBG, agreed to contract for the construction of a residential property for William and Mary Ann Stanley. Admit ___ Deny L If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the response given, please state as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtainable is insufficient to enable you to admit or deny. at Le > bie has T ss ye sick ie. Cy me LEY (perry Deore, pf Hhee CBE COW Me? Cu. OF f - hid! tale tak Lie Coe awd EL KE seactin he OO (/ back the hier. 7? plata ° ~ cube tthe, Bf fr L, ; - iA AL /. yb yn J Aes. I p.. vA 4 ' a % ; coos Vie Vitase CO L%¢ Ce E35 Wha pagel iW / FOBPR vs. Charles Edward Wheeler FDBPR Case N° 2002013565; 2001005511 Admissions 8. Said Construction Agreement did not State that BBG would receive 7% for marketing expenses. Admit _¥_ Deny __ If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the response given, please State as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtainable is insufficient to enable you to admit or deny. 9. BBG did receive a fee and/or commission in said transaction. Admit Va Deny ___ If the preceding Request for Admission was denied, objected to, or for any reason less than a complete admission was given, please state each fact upon which the denial or objection or failure to make a complete admission was made, and if lack of information was the Tesponse given, please state as required by Rule 1.370, Florida Rules of Civil Procedure, the reasonable inquiry made and why the information known and readily obtainable is insufficient to enable you to admit or deny. FOBPR vs. Charles Edward Wheeler « FDBPR Case N° 2002013565; 2004005511 Admissions 10. On or about June 20, 2002, Respondent executed a construction agreement whereby Respondent’s company, BBG, agreed to contract for the construction of a residential property for John Thomas. (idhorie + ma Wr MGT teen Ce LZ P Lo a - ued (PED Dap trails Ls; Gare (peeny ” Le Yoh be AA 11. Said Construction agreement did not state that BBG would receive 7% for marketing expenses. Admit Y Deny __ 12, BBG did receive a fee and/or commission in said transaction. ee ME oe . . ; Lee Oh nF aL t } \. LEGA &. fx! te DOF € Admit x Deny __ FDBPR vs. Charles Edward Wheeler . FDBPR Case N° 200201 3565; 2001005511 Admissions 13. On or about July 23, 2000, Respondent executed a construction agreement whereby Respondent’s company, BBG, agreed to contract for the construction of a residential property for Rueben and LaVerne Narmore, dpa, Admit __ Deny 14. Said Construction Agreement did not state that BBG would receive 7% for marketing expenses. Admit “ Deny __ 15. BBG did receive a fee and/or commission in said transaction. JE ear ze Gee Admit Deny ___ FDBPR vs. Charlies Edward Wheeler FDBPR Case N° 2002013565; 2001005511 Admissions 16. On or about Junel 1, 2002, Respondent entered a plea of nolo contendere to one count of contracting without a license in Brevard County, Florida in case number 05, -2001MM-057346A. han LG CE Pak » gught ¢ Lhere pepe be AE 17. On or about June 11, 2002, Respondent entered a plea of nolo contendere to one count of contracting without a license in Brevard County, Florida in case number 05-2001-MM- Ose Vine, Eurex. a4 pee YZ, Sn Admit Deny __ 18. On or about June 11, 2002, Respondent entered a plea of nolo contendere to one count of contracting without a license in Brevard County, Florida in case number 05-2001-MM- 4 AYU. GUrlex€t, ZL YZ 064550A nt ———n Admit Deny __ 19. On or about June 11, 2002, Respondent entered a plea of nolo contendere to one count of contracting without a license in Brevard County, Florida in case number 05-2002-MM- lw auypgvte. as OZ 055794A Admit ___ Deny __ FDBPR vs. Charles Edward Wheeler + FDBPR Case N° 2002013565; 2001005511 Admissions [Z Mis, Ay fo Charles Edward Wheeler Respondent STATE OF F RIDA County of CLUS IAW The forgoing response to Petitioner's Request for Admissions were acknowledged before me this 3@_ day of CLAS , 2004, to be e and correct to the best of his/her information, knowledge and belief, by: iA adj PALO this 7° day of _ Tan. , 2004. 4) Notary Public My Commission Expigg! EUs ard [a z= Expires Jon. 22, 22, 2008 % Ora 3S Atlantic Bonding Ca, Tee. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Petitioner's First Request for Admissions was furnished to Charles Edward Wheeler, c/o Richard Kane, Esquire, Counsel for Respondent, 351 S. Lanvale Avenue, Daytona Beach, Florida 32114, by United States Certified Mail this day of , 2004. Senior Attorney Fla. Bar No. 425941 DBPR - Division of Real Estate 400 W. Robinson Street, N801 Orlando, Florida 32801-1757 (407) 481-5632 TELEPHONE (407) 317-7260 FACSIMILE JPH/jm

Docket for Case No: 05-002469PL