DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATIO STATE OF FLORIDA v7, & ny, Ig” FLORIDA REAL ESTATE APPRAISAL BOARD a apis FLORIDA DEPARTMENT OF BUSINESS & Wes 76 ” DIVISION OF REALESTATE, OX- DACKPL Misiee Petitioner, v. CASE NO. 2007034683 MADELINE S. SEWELL, Respondent. / —s “ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Madeline S. Sewell (“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, 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 5437 in accordance with Chapter 475 Part I of the Florida Statutes. 3. The last license the State issued to Respondent was as a state certified real estate appraiser at 6203 Royal Poinciana Lane, Tamarac, Florida 33319. 4. On or about May 8, 2007, Madeline (Maddi) Sewell (Respondent) developed and FDBPR v. Madeline S. Sewell Case No. 2007034683 Administrative Complaint communicated an appraisal report (Report 1) for property commonly known as 6540 SW 43rd Street, . Miami, FL 33155 (Subject Property), and estimated its value at $640,000.00. A copy of the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. Respondent made the following errors and omissions in the Report 1: A) Failure to state that the Subject Property had been listed for sale within the past 12 months for $520,000; B) Overstatement of the Subject Property’s gross living area by approximately 650 square a oO Incorrect sketch of Subject Property, noting only one bathroom; i D) Incorrect lot size for comparable sale 1; E) Incorrect sale date for comparable sale 2 in the Sales Comparison section of the Report; F) Adjustment for both room count and square footage for comparable sale 3 and comparable sale 5; G) Failure to make an age adjustment to comparable sale 4 for being 13 years younger than the Subject Property; H) Failure to make adjustments to the comparable sales for their significant site size differences; I) Use of comparable sales that differed significantly in gross living area from the Subject Property; comparable sale | is 371 square feet smaller than the Subject Property; comparable sale 2 is 483 square feet larger than the Subject Property; comparable sale 3 is 1,075 square feet smaller than the Subject Property; comparable sale 4 is 130 square feet larger than the Subject Property; and FDBPR v. Madeline S. Sewell Case No. 2007034683 Administrative Complaint comparable sale 5 is 380 square feet smaller than the Subject Property; and J) Incorrect statement that comparable sale 5 had 3 bedrooms and 3 bathrooms, when it actually has 4 bedrooms and 2 bathrooms. 6. On or about May 15, 2007, after being contacted by Edmund. V. Buzy-Pucheu of Delta Funding Corporation (Complainant), Respondent developed and communicated a revised Report for the Subject Property (Report 2), wherein Respondent included data regarding the sale/and listing history of the Subject Property. A copy of Report 2 is attached hereto and incorporated herein as Administrative Complaint E Exhibit 2. A copy of the ¢ Multiple Listing Sc Service printout for the Subject Property showing its sale and i listing history is attached hereto and 1 incorporated herein as Administrative Complaint Exhibit 3. 7. There is no documentation in the work file to support the $50/square foot adjustments made to all comparable sales in Report 1 and Report 2. There is also no documentation in the work file to support the $25,000 adjustment for the inferior condition of comparable sale 3 in the Sales Comparison section of either Report. Additionally, Respondent fails to provide documentation in the work file for the pool adjustment for comparable sale 3 and the garage adjustment made to comparable sale 4 in the Reports. 8. The work file only contains one data source, Realist, for comparable sale 1 and comparable sale 2; the work file only contains one data source, MLS, for comparable sale 4 and comparable sale 5. There is no secondary or tertiary data source in the work file for these comparable sales. These records do not state data such as total room count; however, Respondent managed to include such information in the Sales Comparison Analysis Section of both Reports. FDBPR v. Madeline S. Sewell Case No. 2007034683 Administrative Complaint Respondent failed to state where she obtained the data utilized in the Reports. Respondent stated in the Sales Comparison Analysis section of the Report that she relied on Miami-Dade public records in developing the Reports; however, there are no public records in the work file. A copy of the work file is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. Copies of Miami-Dade public records for the Subject Property and the comparable sales are attached hereto and incorporated herein as Administrative Complaint Exhibit 5. 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 II Based upon the foregoing, Respondent is guilty of failing to retain, for at least five years, original or true copies of any contracts engaging the appraiser’s services, appraisal reports, and supporting data assembled and formulated by the appraiser in preparing appraisal reports in violation of Section 475.629, Florida Statutes and, therefore, in violation of Section 475.624(4), Florida Statutes. COUNT III Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Rule 1-1(a), (b) and (c), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. FDBPR v. Madeline S. Sewell Case No. 2007034683 Administrative Complaint COUNT IV Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-2(e)(i), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT V Based upon the foregoing, Respondent has violated a standard for the development or : communication nofa a areal. estate te appraisal, specifically Rule 1- 4a), 0 or r other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT VI Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Rule 1-5(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT VII Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Rule 2-1(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. FDBPR v. Madeline S. Sewell : Case No. 2007034683 Administrative Complaint COUNT VII Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Rule 2-2(b)(ii), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), 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 oaoe= = 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 ofthe - 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, 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, FDBPR v. Madeline S. Sewell Case No. 2007034683 Administrative Complaint 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 2. day of Nsveted , 2007. ; <) Yes No_IfNo, describe Utilities Public Other (describe) Public Other (describe) Off-site Improvements ~ Type Public Private Ekcticty XJ Water x Street_Asphalt i Gas ia Sanitary Sewer JL} Alley : FEMA Special Flood Hazard Area__(_] Yes [