STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FIRST NATIONAL REAL ESTATE ) COMPANY, BERNO MARIE ANDERSON ) and FREDERICK T. HYMAN, )

)

Petitioners, )

)

vs. ) CASE NO. 78-2553

) FLORIDA REAL ESTATE COMMISSION, )

)

Respondent. )

)

RECOMMENDED ORDER

This case was heard pursuant to notice in Miami, Florida, on March 7, 1979, by Stephen F. Dean, assigned Hearing Officer of the Division of Administrative Hearings.

This case arose from the denial by the Commission of the Petitioners' request for a corporate broker's registration on the grounds stated in the Commission's order of November 30, 1978, which found that Anderson and Hyman already held multiple certificates and had not shown that an additional certificate was necessary as required by Rule 21V-2.19, Florida Administrative Code.

The issue presented is whether the Petitioners have shown that the additional certificate is necessary to the conduct of legitimate business and there is no opportunity for such certificate to be used in a manner prejudicial to the public or to the business associates of the holder.

APPEARANCES

For Petitioner: Mark Silverstein, Esquire

420 Lincoln Road, Suite 438 Miami Beach, Florida 33139

For Respondent: Salvatore A. Carpino, Esquire

400 West Robinson Street Post Office Box 1900 Orlando, Florida 32802

FINDINGS OF FACT

1. Based upon a stipulation of the parties, the following findings of fact are made:

   
   

   1. An application for registration of First National Real Estate Company was made for registration as a corporate broker.

   2. Frederick T. Hyman is listed on said application as president and non-active officer. Berno Marie Anderson is listed as secretary/treasurer and as active broker.

      
      

   3. First National Real Estate Company is qualified for registration except for the ground stated in the Commission's order of November 30, 1978.

      
      

2. The facts show that Berno Marie Anderson had been an active broker with Placid Estates Corporation, Creative Realty Corporation, Security Realty Corporation, Avon Park Realty Corporation, Allstate Realty Corporation, and Milco Associates of Colorado, Inc. In Addition, Anderson was listed in a non- active status with Terra Investment Corporation, Terra International Corporation, Store Realty Corporation, The Miller Comp., Inc., and Milco Associates, Inc.

   
   

3. Frederick T. Hyman was registered in a non-active status with Creative Realty Corp., Security Realty Corp., Avon Park Realty Corp., Allstate Realty Corp., The Miller Comp., Inc., Milco Associates, Inc., and Milco Associates of Colorado, Inc.

   
   

4. Both Anderson and Hyman held and hold individual registrations as real estate brokers.

   
   

5. Substantial and competent evidence was introduced at the hearing that Berno Marie Anderson had terminated her association with Terra Investment Corp., Terra International Corp., Security Realty Corp., Store Realty Corp., Milco Associates, Inc., and Milco Associates of Colorado, Inc., either through withdrawal from participation with the corporate broker, dissolution of the corporation, or non-renewal of the corporate registration. Hyman had terminated his relationship with Security Realty Corp., Milco Associates, Inc., and Milco Associates of Colorado, Inc., in like manner.

   
   

6. Berno Marie Anderson is still affiliate with Placid Estates Corp., Creative Realty Corp., Avon Park Realty Corp., and Allstate Realty Corp. as an active broker. Frederick T. Hyman is still associated in a non-active status with Creative Realty Corp., Avon Park Realty Corp., Allstate Realty Corp., and The Miller Comp., Inc.

   
   

7. Berno Marie Anderson stated that the application for First National Real Estate Company was made on the advice of her tax consultant because of tax advantages which she could not specifically define.

   
   

   CONCLUSIONS OF LAW

   
   

8. Rule 21V-2.19, Florida Administrative Code, provides that no broker shall be issued active certificates in more than one capacity unless it is clearly shown that additional certificates are necessary to the conduct of his legitimate business. The Commission initially denied the application of First National Real Estate Company because Berno Marie Anderson and Frederick T. Hyman were listed with several other corporate brokers. The evidence shows that as of the date of the hearing Berno Marie Anderson was an active broker with four corporations and held an active individual certificate, and Frederick T. Hyman was listed as a non-active broker with four corporations and held an active individual broker's registration.

   
   

9. The sole ground asserted by the applicants in support of the application of First National Real Estate Company was Anderson's statement that

   it was necessary to obtain this certificate to obtain certain tax advantages. Additionally, the Petitioners argue that they should be issued the additional certificate because they had earlier obtained certificates when they were respectively involved with nine and five corporations; and having substantially reduced their involvement with corporations to four each, First National Real Estate Company should be registered.

   
   

10. This argument is very simple but overlooks what, if any, support the applicants presented in demonstrating their need for the other applications. This case must rest solely upon the evidence presented in support of the applicants' instant application for registration of First National Real Estate Company. The only support for this application is Anderson's statement that her tax consultant advised her that it was beneficial to have an additional certificate. She could not state the specific nature of the tax benefit to be derived.

    
    

11. While not limiting the number of certificates a broker may have, Rule 21V-2.19, supra, does require that cause be shown why an additional certificate should be granted. The Petitioners have not shown good cause why such a certificate is necessary to the conduct of legitimate business. As an active broker, Berno Marie Anderson has obligations to four corporations. Additionally, she holds an individual broker's registration. Insufficient evidence has been presented to demonstrate the need for an additional certificate and to explain how Anderson expects to meet the obligations imposed upon an active broker to the various corporations. There is no limitation upon the number of corporations in which a broker may maintain inactive status. By virtue of the individual's inactive status in four other corporations, Hyman could not be precluded from inactive status in First National Real Estate Company. However, every corporate registrant must have an active broker. In this instance, Berno Marie Anderson is the active broker and already holds five active certificates. Having failed to demonstrate her need for an additional certificate, the application for First National Real Estate Company should be denied.

RECOMMENDATION

Based upon the foregoing Findings of Fact and Conclusions of Law the Hearing Officer recommends that the Florida Real Estate Commission deny the application of First National Real Estate Company for registration as a corporate broker.

DONE and ORDERED this 11th day of May, 1979, in Tallahassee, Leon County, Florida.

STEPHEN F. DEAN

Hearing Officer

Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 11th day of May, 1979.

COPIES FURNISHED:

Salvatore A. Carpino, Esquire Florida Real Estate Commission

400 West Robinson Street Post Office Box 1900 Orlando, Florida 32802

Mark Silverstein, Esquire

420 Lincoln Road, Suite 438 Miami Beach, Florida 33139

Docket for Case No: 78-002553

Orders for Case No: 78-002553