JOHN K. FREEMAN, )
vs. ) DOCKET NO. 76-1437
) PD NO. 2816
LORAN V. CARLTON, )
Respondent. )
Pursuant to notice, a hearing was held in the above-styled cause in the Jefferson County Courthouse, Monticello, Florida at 9:00 a.m. on October 6, 1976, before Delphene C. Strickland, Hearing Officer, Division of Administrative Hearings, Department of Administration.
For Petitioner: Louis B. Guttmann III, Esquire Staff Counsel
Whether the real estate license of Loran V. Carlton should be suspended or revoked.
Loran V. Carlton is a registered real estate broker who holds License No. 0013194.
Mr. Carlton was employed as a registered real estate salesman in the employ of broker George H. Inman doing business as Inman Realty Company in the years 1973 and 1974 and at the time the subject business transaction took place.
On September 11, 1972, Respondent Loran V. Carlton entered into an agreement to lease certain property owned by R. Vance Barden, located in Jefferson County, Florida, which is the property involved in subject real estate transaction. The lease contained an option to purchase property which is the subject of this hearing.
Mr. Joseph F. Carrin, a real estate appraiser, appraised the subject property at the request of Respondent Carlton for the Barden estate and submitted an appraisal report dated May 22, 1973.
August 10, 1973 Carlton drafted a contract receipt between Virgil R. Norris and Brian T. Hayes, trustee to purchase the subject property for
$135,000. It was executed September 1973.
A contract was entered into by Carlton dated the 14th day of August, 1973, to purchase said property from Henry Henriquez, as executor of the estate of R. Vance Barden, deceased, for a total cash price of $55,000.
On or about August 15, 1973, the executor of the estate of R. Vance Barden petitioned the Court for an. Order of Sale of the subject property based on the exercise of the option contained in the contract between the testator Barden and Respondent Carlton dated September 11, 1972.
Carlton purchased said property on August 20, 1973 from Henry Henriquez, as executor of the estate of R. Vance Barden, deceased, for a total cash price of $55,000.
By an instrument dated August 1973, Carlton and his wife mortgaged subject property to the Farmer's and Merchant's Bank of Monticello.
On or about September 12th or 13th, 1973, Loran V. Carlton and Lucille
V. Carlton entered a trust agreement to convey the said property to Brian T. Hayes as trustee.
By deed dated September 12, 1973, Carlton and his wife conveyed subject property to Brian T. Hayes, trustee.
A title binder on the subject property was sent to Virgil R. Norris on February 12, 1974, which referred to the mortgage of August 1973 between the Carltons and the bank.
A Purchase Agreement Extension and Receipt between Mr. Norris and Thomas G. Ellis and Mr. Hayes was executed April 12, 1974. Inman Realty Company was paid a commission of $6,750.00 on April 12, 1975, a portion of which commission was paid Respondent Carlton as salesman for Inman Realty Company.
On May 1, 1974 the trustee sent the satisfaction of the mortgage to Mr. Norris.
In August or September of 1973 Carlton and Ellis had discussed the purchase of subject property. There has not been a final closing of the transaction as of the date of this hearing.
Mr. Virgil R. Norris died November 16, 1975.
On April 1, 1976 the Florida Real Estate Commission filed an Administrative Complaint seeking to "revoke or suspend or otherwise discipline" the Respondent Loran V. Carlton for the reason that the Respondent "failed to disclose to Virgil R. Norris or Thomas G. Ellis, Jr. the facts concerning Carlton's personal interest in the subject property," and further charging "that by reason of the foregoing, the Respondent, Loran V. Carlton, is guilty of fraud, misrepresentation, concealment, false pretenses, dishonest dealing,
trick, scheme or device, or breach of trust in a business transaction in this state in violation of Subsection 475.25(1)(a), Florida Statutes."
CONCLUSIONS OF LAW
Section 475.25 Grounds for revocation or suspension.-Florida Statutes, provides:
The registration of a registrant may be suspended for a period not exceeding 2 years, or until compliance with a lawful order imposed in the final order of suspension, or both upon a finding of facts showing that the registrant has:
Been guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing, trick, scheme or device, culpable negligence, or breach of trust in any business transaction, in this state or any other state, nation, or territory; has vio- lated a duty imposed upon him by law or by the terms of a listing contract, written, oral, express or implied, in a real estate trans- action; has aided, assisted, or conspired
with any other person engaged in any such misconduct and in furtherance thereof; or has formed an intent, design, or scheme to engage in any such misconduct, and has committed an overt act in furtherance of such intent, design or scheme."
* * *
The facts of the case do not show that the Respondent was in fact guilty of the prohibitions of the foregoing statute. The Receipt-Contract between Respondent and Virgil R. Norris of August 10, 1973 was a standard real estate form requiring a Title Binder and giving the purchaser 180 days thereafter to close. The Title Binder dated February 7, 1974 clearly shows that the Respondent Carlton and his wife were mortgagees. The abstract delivered to Mr. Norris also disclosed the Respondent's interest. The public records showed the interest of the Respondent prior to the purchaser making payments towards the purchase of the property. The actions of Respondent fail to clearly show that he is in fact guilty of the foregoing statutory prohibitions.
It is evident that Respondent failed to act with all the candor one might expect or hope for when dealing with a real estate broker or salesman, however his actions fall short of those which would revoke or suspend his license.
Dismiss the complaint.
DONE and ORDERED this 24th day of January, 1977 in Tallahassee, Florida.
DELPHENE C. STRICKLAND
Louis B. Guttmann III, Esquire Staff Counsel
