vw w) " STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULIALION, FLORIDA REAL ESTATE COMMISSION Ns % FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, OO -/ 7 7 7 vs. FDBPR Case N° 98-85143 EDWARD W. DRADY, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business and Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Edward W. Drady ("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 § 20. 165 and d Chapters 1 120, 455 and 475, Fla. Stat, and the rules promulgated thereunder. 2. Atall material times, Respondent is and was at all times material hereto a licensed Florida real estate salesperson, issued license number 0648945 in accordance with Chapter 475 (Part D, Fla. Stat. 3. The last license issued was as a salesperson, c/o The Keyes Co., One S.E. Third Avenue, Miami, Florida 33131. | Ww Y FDBPR v. Edward W. Drady Case No. 9885143 Administrative Complaint 4. On or about January 12, 1998, Respondent showed a rental property, located at 4507 Polk Street, Hollywood, to Fanie and Martha Botha. Respondent represented that the property was available for lease, with an option to purchase. 5. Respondent was purporting to act on behalf of the alleged owner of the property, Kathleen McDaniel. 6. Respondent misrepresented the status and availability of such property to the Bothas, since the true owners were Olga Estrada and Olga Vuelta. 7. On January 19, 1998, the Bothas executed a residential lease and an option to purchase agreement concerning the subject property, both prepared and facilitated by Respondent. Respondent stated within the lease that “Kathleen McDaniel/Edward Drady” were the “Jandlord,” and that “Kathleen McDaniel” was the “‘seller/Landlord” under the option to purchase. Respondent also signed both documents for Ms. McDaniel (representing to the Bothas that he had Ms. McDaniels’ “power of attorney”). True copies of the parties’ lease and option to purchase are attached and incorporated as Composite Exhibit 1. 8. Respondent required the Bothas to pay $5,050 in deposits and rents under the lease and option agreement. A true copy of the Bothas’ $5,050 check to Ms. McDaniel is attached and incorporated as Exhibit 2. a . "9. The Bothas proceeded to perform inspections on the property, arranged for utilities and began preparations to replace carpeting and wallpaper before taking occupancy of the subject property on February 1, 1998. 10. On J anuary 25, 1998, the Bothas learned from Ms. McDaniel that she was not the owner > FDBPR v. Edward W. Drady Case No. 9885143 Administrative Complaint of the subject property. When the Bothas confronted Respondent with Ms. McDaniel’s admission, he continued to maintain that the Bothas’ lease and option to purchase agreements were valid. 11. The Bothas then contacted the true owners of the property and verified that neither Respondent nor Ms. McDaniel had the authority to offer an option to purchase the subject property. Moreover, the true owners also revealed that Ms. McDaniel had only a lease agreement for the subject property from July 26, 1998 through January 25, 1999 (and not through January 31, 2000 as stated in Respondent’s lease with the Bothas), and that neither Respondent nor Ms. McDaniel had ever sought permission to sublease the property to the Bothas. 12. The Bothas then demanded that Respondent release them from the alleged lease and option to purchase agreements, refund their $5,050 in deposits and payments and reimburse them for some $1,200 in utility deposits, inspection fees and other expenses incurred in preparation to occupy the promised premises. | 13. Respondent did return $4,000 to the Bothas on or about February 24, 1998—~but only _after they had been forced to retain an attorney to demand same. The Bothas were ultimately forced to bring a civil suit aginst Respondent to obtain an additional $750 via a settlement agreement. os 14. Respondent's actions and inactions, with respect to his representation of Ms. McDaniel and/or himself in the lease and option 6 purchase agreements with the Bothas, were performed without the knowledge or approval of his then employer and broker, Alta Velocita, Inc. and Robert Joseph Griffith, Sr. FDBPR v. Edward W. Drady Case No. 9885143 Administrative Complaint . 15. Additionally, Respondent acted as an (unlicensed) broker when he collected $5,050 from the Bothas and then disbursed same to himself and/or Ms. McDaniel without authority to do so (in that the lease and option to purchase agreements were unauthorized by the true owner of the subject property, and thus invalid). 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 § 475.25(1)(b), Fla. Stat. (1998). COUNT II Based upon the foregoing, Respondent is guilty of failure to immediately place with the registered employer any money, fund, deposit, check or draft entrusted to her as agent of the registered employer in violation of Rule 61J2-14.009, F.A.C. (1998) and §§ 475.25(1)(k) and 475.25(1)(e), Fla. Stat. (1998). + Based upon the foregoing, the Respondent is guilty of having collected 2 any money in “connection with any real estate brokerge transaction except i in the name of the employer and with the express consent of the employer a and j is is auity of commencing or maintaining any action for a commission or compensation aginst any ‘person except his registered employer i in violation of of §§ FDBPR v. Edward W. Drady Case No. 9885143 Administrative Complaint 475.42(1)(d) and 475.25(1)(e), Fla. Stat. (1998). COUNT IV Based upon the foregoing, Respondent is guilty of having operated as a broker while licensed as a salesperson in violation of §§ 475.42(1)(b) and 475.25(1)(a), Fla. Stat. (1998). 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, Fla. Stat., depending upon the severity of the 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 § 475.25(1), Fla. Stat. and Rule 61J2- 24.001, Fla. Admin. Code. The penalties which may be imposed for violation(s) of Chapter 455, Fla. Stat., depending upon the ® severity ¢ of the > offense(s), i include: revocation of the license, ‘registration, or} or permit; suspension of the license, registration, or permit for a period n 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 Tyre we FDBPR v. Edward W. Drady A pelVISiON o Administrative Complaint ADM? meip many Case No. 9885143 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 § 455.227, Fla. Stat. and Rule 6132-24.001, Fla. Admin. Code. SIGNED this 4 day of Pauasany , 2000. Professional Regulation By: Herbert S. Fecker, Jr. Director, Division of Real Estate ATTORNEY FOR PETITIONER Robert W. Burijon, Jr. Florida Bar N° 434485 Senior Attorney, Real Estate Department of Business and Professional Regulation, Legal Section - Suite N 308 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801-1772 vex (407) 481-5632 se esces (407) 317-7260 FAX RWB/k PCP: HE/CS 1/00 a | FDBPR v. Edward W. Drady Case No. 9885143 Administrative Complaint NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under § 120.573, Fla. Stat, is not available for administrative disputes involving this type of agency action. PLEASE BE FURTHER ADVISED that pursuant to this Administrative 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, Fla. Stat.; 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 twentv-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. re eg ai Saye , is by and between LANDLORD. and TENANT / for the dwelling located at under the following terms and conditions: rent from Tenants. 2. Rent: Tenants agree to rent this dwelling for the sum of $ 1350" per monthiad payable in advance. The first months rent is $_. 3s» °° . 3. Form of Payment: Tenant agrees to pay rent in the form of a personal check. a cashier's check or a money order to the Landlord. 4. Rent Payment Procedure: Tepants agree to pay their rent to the owner at the following address: Kern eet Me Dauel 390} Si) 24 aw ol von Be utilizins the mail service. §. Returned Checks: [f for any reason a check used by tenants to pay owners ig returned without having been paid, Tenants will pay returned check charge of $_2¢:°° and take whatever other consequences there might bein making a late payment, After the second #ime that a tenant’s check is retumed zenants must thereafter secure a cashier's check or money order for payment of rent. 6. Rent Due Date: The due date for the rent owing under this agreement is the LST >f every calendar month. The LATE DATE is one day later. There is no grace period. Tenants may pay their rent on or before the due date. The very next day is the rent late date. This is the: first day when owners will consider the rent late. Owners expect to have RECEIVED the rent before this date. If tenants rent is due on the First 1t must be received on or before the First to be on time. 7. Late Fees: Landlord expect tenants $© pay rent promptly. In the event that this does not occur for any reason, the tenant will agree to pay a $20 per day late fee unul full payment is received. 8. Deposits: Tenants agree to deposit with the ownerilandlord the sum of $_27S2°37)00™ payable before they occupy the premises. | andlord may withhold from these deposits o:ly what is reasonably necessary to cover the following tenant defaults: sea A) damages to the dwelling B) extraordinary cleaning costs following tenants’ departure “C) unpaid rent and various other accrued und unpaid charges D) legal & service charges 9. Cancellation: If for any reason thit contracts canceled, there will be a -O- '% service a charge deleted from monies received. 1 OLUtilities/Ser vices: Yenants agree te puy all uuliues and services with the exception of ine follawing which Owner agrees to pay: home im net {ces and taxes, Af / ij a [INITIAL t 1 L 00 APR 28 ANNE Mh " ‘ ye ‘ wary, he y ; f ; gf Wo s < ay Ay & 4s oy Te I1., Occupasts: __gber of isis limited to_2 pe! 3 S. No one else may live there withiow diords’ prior wnitten Setinission. 12. Guests: Tenan 1 est fi Ta maximum period of seven (7) dtys every six (6) months. Se.z Met) eur i. Pr vo . 13. Subletting and Assignment: Tenants ’shall not sublet the entire premises or ary part of the premises, nor shall they assign this Agreement to anyone else without first obt ining the Landlord’s written permission. 14. Liquid Filled Furniture: Tenants agree not to keep any liquid-filled furnitu‘e in this dwelling without first obtaining Landlord’s written permission. vehiet€S on the premises. These 18. Vehicles: Tenants agree to keep a maximum of, 12Q- S ts agree to park their vehicles in vehicles must be operable and currently licensed. ’ 1 assigned spaces and to those spaces clean of cit drippings. Tenants agree to advise their visitors about parking and to sibility for where their visitors park. Only those motorcycles which have exhaust muffli that of a passenger car are allowed. Only those self-propelled recreational yehicles which are used [fo transportation are allowed. Tenants agree not to park ; recreational trailers, utility trailers an ike on the premises without first obtaini Landlords’ written permission. Tenants agree no! repair their vehicles on the premises if such repairs will take longer than a single day unless the vehi ‘le is kept 16. Appliances: Although there may be appliances in the dwelling, such as a refrigera or, stove. dishwasher, clothes washer/dryer, microwave, garbage compactor or disposal, the us> of these appliances is not included in the rent. If Tenants wish to use these appliances, they agree to assume all responsibility for care and maintenance. 17. Tenant Inspection: Tenants have inspected the dwelling and its contents and agree that they are in satisfactory order, as are the electrical, plumbing and heating systems. 18. Notification of Serious Building Problem: Tenants agree to notify the Owners/Landlord immediately upon first discovering any signs of serious building protlems such as a crack in the foundation, a tilting porch, a crack in the plaster or stucco, moisture in tre ceiling. buckling sheetrock or siding, a leaky roof, a spongy floor, a leaky water heater or termits: activity. 19. Windows: Tenants agree to be responsible for any windows which become eracked or broken in their dwelling while they live there. ~ 20. Drain Stoppages: As of the date of this Agreement, Landlord warrants that the dwelling’s sewage drains are in good working order and that they will accept the normal householc waste for which they were designed. They will not accept things such as diapers, sanitar’ napkins. tampons, children’s toys, wads of toilet paper, balls of hair, grease, oil, table scraps, clothing. rags, sand. dirt, rocks or newspapers. Tenants agree to pay for cleaning the drains of «ny and all stoppages except those which the plumber who ts called to clear the stoppage will attest in wun were caused by defective plumbing, tree roots or acts of God. Z1.Trash: Tenants agree to dispose of their ordinary household trash by placing it into a receptacle for periodic collection. They agree to dispose of their extraordinary househe d trash by hauling it to the dump themselves or by paying somcone else to haul it away. Tenants agree to pay