STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

DEPARTMENT OF PROFESSIONAL )

REGULATION, FLORIDA REAL )

ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 84-1300

)

CHARLES EDWARD PARSONS, )

)

Respondent. )

)

RECOMMENDED ORDER

A final hearing in this case was held in Tampa, on August 20, 1984. The issue is whether the Florida Real Estate Commission should discipline respondent Charles Edward Parsons as sought in the Administrative Complaint of petitioner Department of Professional Regulation, alleging in four counts: (1) that respondent violated Section 475.25(1)(b), Florida Statutes (1983); (2) that respondent is guilty of having failed to account or deliver money being a real estate broker's commission in violation of Section 475.25(1)(d), Florida Statutes (1983); (3) that respondent is guilty of having failed to place with his registered employer money or deposit in violation of Section 475.25(1)(k), Florida Statutes (1983); and (4) that respondent is guilty of having operated as a broker in violation of Section 475.42(1)(b) and 475.25(1)(a), Florida Statutes (1983). Factually, the Department alleges that Parsons, while a real estate salesman employed by a corporate broker, entered into a sales contract for the purchase of real property during the life of a listing agreement he had obtained on behalf of his employer and, without the knowledge or consent of his employer, applied his employer's real estate Commission as a credit towards the purchase price of the real property.

FINDINGS OF FACT

1. Respondent Charles Edward Parsons (Parsons) is now and was at all times referred to in these Findings Of Fact a licensed real estate salesman having been issued license number 0362183.

   
   

2. From approximately February 8, 1982 through May 13, 1983, Parsons was licensed and operating as a real estate salesman in the employ of corporate broker K Realty of Tampa, Inc., with the qualifying broker being Katherine I. Ley.

   
   

3. As part of his employment, Parsons obtained a listing agreement from Richard and Julie Randall for the sale of certain real property. The listing was effective from August 24, 1982 to December 24, 1982.

4. On October 22, 1982, Parsons, as purchaser, entered into a Contract for Sale of Real Estate with the Randalls, as sellers, for the purchase of Randalls' property. As part of the contract, Parsons represented that he had made and delivered in trust a $50.00 earnest money deposit to his registered employing broker, K Realty of Tampa, Inc.

   
   

5. The Randalls to Parsons sales contract closed on or about November 18, 1982. At the closing, Parsons instructed the closing agent to credit Parsons, as purchaser, with $1,140.00 towards the payment of the purchase price in lieu of payment of K Realty's real estate commission.

   
   

6. At no time referred to above in these Findings Of Fact did Parsons advise or inform K Realty of Tampa, Inc. or Katherine I. Ley of the Randalls to Parsons real estate transaction. Nor did either K Realty of Tampa, Inc. or Katherine I. Ley receive or waive payment of a brokerage commission in connection with the Randalls to Parsons transaction. Parsons acted throughout without the prior knowledge or consent of either K Realty of Tampa, Inc. or Katherine I. Ley.

   
   

7. Notwithstanding his representations to the contrary, Parsons did not place with K Realty of Tampa, Inc. or Katherine I. Ley $50.00 or any part of the earnest money deposit he was supposed to have made at the time of the Randall to Parsons sales contract.

   
   

   CONCLUSIONS OF LAW

   
   

8. As to Count I of the Administrative Complaint, Section 475.25(1)(b), Florida Statutes (1983) provides that the Florida Real Estate Commission may discipline a licensee who is found 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 this State. The evidence of this case establishes that Parsons is subject to discipline under this statute.

   
   

9. As to Count II, Section 475.25(1)(d), Florida Statutes (1983) provides that the Florida Real Estate Commission may discipline a licensee who is found guilty of failing to account or deliver to any person, including a licensee, at the time which has been agreed upon or is required by law, any personal property such as money which has come into his hands and which is not his property. The evidence of this case establishes that Parsons violated that statute by failing to account and deliver to his employing broker the real estate commission to which it was entitled as a result of the Randalls to Parsons real estate transaction.

   
   

10. As to Count III, Section 175.25(1)(k), Florida Statutes (1983), provides that the Florida Real Estate Commission may discipline a licensee who is found guilty of having failed, as a salesman, to immediately place with his registered employer any money, fund, deposit, check, or draft entrusted to him by any person dealing with him as agent of his registered employer. The evidence establishes that Parsons failed to place his $50.00 earnest money deposit for the purchase of the Randalls' real property with his employing broker. This money could have been paid directly to the Randalls. Instead, the Randalls entrusted Parsons, as salesman, to have it held in trust by the broker. Therefore, the evidence in this case establishes the violation alleged in Count III of the Administrative Complaint.

11. As to Count IV of the Administrative Complaint, Section 475.25(I)(a), Florida Statutes (1983), Provides that the Florida Real Estate Commission may discipline a licensee who is found guilty of having violated any provision of Section 475.42. Section 475.42(1)(b), Florida Statutes (1983), prohibits a person licensed as a salesman from operating as a broker or operating as a salesman for any person not registered as his employer. The evidence in this case does not establish that Parsons violated this statute. Throughout the transactions referred to in the Findings Of Fact, Parsons was operating, as far as the Randalls and the closing agent were concerned, as a salesman for his employing broker.

    
    

12. Section 475.25(1), Florida Statutes (1983), provides that the Florida Real Estate Commission may, upon a finding of any violation referred to above, suspend a license for a period not exceeding 10 years, revoke a license, impose an administrative fine not to exceed $1,000.00 for each count or separate offense, or reprimand the licensee in violation.

RECOMMENDATION

Based upon the foregoing Findings Of Fact and Conclusions Of Law, it is recommended that the Florida Real Estate Commission suspend the real estate salesman's license of respondent Charles Edward Parsons for 2 years or until he makes full restitution to K Realty of Tampa, Inc., whichever last occurs.

RECOMMENDED this 1 day of October, 1984, in Tallahassee, Florida.

COPIES FURNISHED:

John Huskins, Esquire Department of Professional

Regulation

Post Office Box 1900 Orlando, Florida 32802

Charles Edward Parsons

409 Ash Avenue Bessemer, Alabama 35021

Harold Huff, Executive Director Real Estate Legal Services Department of Professional

Regulation

Post Office Box 1900 Orlando, Florida 32802

Fred Roche, Secretary Department of Professional

Regulation

130 North Monroe Street Tallahassee, Florida 32301

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AGENCY FINAL ORDER

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STATE OF FLORIDA

DEPARTMENT OF PROFESSIONAL REGULATION FLORIDA REAL ESTATE COMMISSION

DEPARTMENT OF PROFESSIONAL REGULATION, FLORIDA REAL ESTATE COMMISSION

Petitioner,

vs. CASE NO. 0035787

DOAH NO. 84-1300

CHARLES EDWARD PARSONS

Respondent.

/

FINAL ORDER

The Florida Real Estate Commission heard this case on October 23, 1984 to issue a Final Order.

Hearing Officer J. Lawrence Johnston of the Division of Administrative Hearings presided over a formal hearing on August 20, 1984. On October 1, 1984 he issued a Recommended Order, which is adopted by the Florida Real Estate Commission as to all Findings of Fact and Conclusions of Law. A copy of this Recommended Order is attached hereto as Exhibit A and made a part hereof.

However, after a complete review of the record the Florida Real Estate Commission hereby rejects the recommendation of the Hearing Officer, based upon paragraphs 11, 17, 18, 23, 24, 25, 26, and 28 of the transcript of formal hearing (which is attached hereto as Exhibit B) and based upon Petitioner's Exceptions to the Recommended Order (which are attached hereto as Exhibit C).

The Florida Real Estate Commission therefore ORDERS that Respondent's real estate license be suspended for a period of two (2) years.

This Order shall be effective thirty (30) days from the date of filing with the Clerk of the Department of Professional Regulation.

DONE AND ORDERED this 23rd day of October 1984 in Orlando, Florida.

Harold R. Huff, Director Florida Real Estate Commission

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing was sent by

U.S. Mail to: Charles Parsons, 409 Ash Avenue, Bessemer, Alabama 35021; to Hearing Officer J. Lawrence Johnston, Division of Administrative Hearings, 2009 Apalachee Parkway, Tallahassee, Florida 32301; and to John Huskins, Staff Attorney, Dept. of Professional Regulation, P.O. Box 1900, Orlando, Florida 32802, this 2nd day of November 1984.

Harold R. Huff, Director

LG/dp

Docket for Case No: 84-001300

Orders for Case No: 84-001300