STATE OF FLORIDA og hak DEPARTMENT OF BUSINESS & PROFESSIONAL REGULAT 3 FLORIDA REAL ESTATE APPRAISAL BOA FLORIDA DEPARTMENT OF BUSINESS & ' - PROFESSIONAL REGULATION, PTE RR NES DIVISION OF REAL ESTATE, Petitioner, Ny 02 O¢// 4 c v. CASE NO. 2000-83163 LARRY E. JACKS, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Larry E. Jacks (“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 RD3437 in accordance with Chapter 475 Part II of the Florida Statutes. 3. The last license the State issued to Respondent was as a state-certified residential real estate appraiser at 2629 West 23" Street #A, Panama City, Florida 32405. 4. On or about October 19, 1998, Respondent and Robert L. Pohlman, who supervised Respondent, developed and communicated an appraisal report (Report) for property commonly FDBPR v. Larry E. Jacks Case No. 200083163 Adininistrative Complaint known as 506 Maine Avenue, Panama City, Florida 32401, (Subject Property) and estimated its market value at $48,500.00 as of October 19, 1998. A copy of the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. At the time Respondent developed and communicated the Report, he was a Florida state- registered assistant real estate appraiser. 6. The Report contained the following errors: a. Indicated that the zoning description of Subject Property was residential and that the zoning compliance was legal, when in fact the zoning description was general commercial and its compliance was as a legal non-conforming use; b. Failed to indicate the specific zoning classification for Subject Property; c. Indicated that site view of Subject Property was “homes/canal,” when, in fact, there is no canal located near Subject Property; d. Failed to contain information relating to Subject Property’s proximity to an automotive company’s storage yard, which was located adjacent to Subject Property; e. Indicated an incorrect calculation for depreciation of Subject Property in the cost approach analysis; and f. Indicated in the description of improvements for Subject Property that there were two porches with a total square footage of 230, but the sketch addendum indicated that the total square footage for the two porches was approximately 153 square feet. 7. In the Report, Respondent indicated that the data sources supporting the sales comparison analysis for Subject Property to the comparable sales were by inspection of Subject Property and 2 FDBPR v. Larry E. Jacks Case No. 200083163 Adininistrative Complaint public records for each of the comparables. 8. In the Report, Respondent indicated that the sales comparison approach was given the most consideration in the Report. 9. On or about November 15, 2000, and November 16, 2000, Petitioner’s investigator obtained a copy of the workfile from Respondent’s office. 10. Respondent’s workfile contained insufficient data to support Respondent’s adjustments for the comparable sales in the sales comparison analysis, in that there were no public records data or other data to support the adjustments within the workfile. 11. The workfile contained no information that Respondent verified the data sources. 12. Ina letter to Petitioner’s investigator, dated August 22, 2000, Respondent indicated that the zoning for Subject Property was correct as stated in the Report, in that Subject Property was zoned residential and was a legal use. A copy of the letter is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 13. At the time Respondent transmitted the letter to Petitioner’s investigator, Respondent’s workfile contained a letter from the City of Panama City, Department of Land Use & Code Enforcement, indicating that Subject Property was located in an area zoned general commercial and was considered a legal non-conforming structure. A copy of the letter is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 14, During the investigation, Respondent provided to Petitioner’s investigator additional information regarding the comparable sales analyzed in the Report. FDBPR v. Larry E. Jacks Case No. 200083163 Adnunistrative Complaint 15. During the investigation, Respondent described the fence on Subject Property as chicken wire. 16. Information Respondent forwarded to Petitioner’s investigator indicated that the fences on the property of comparable sales one and three were chain-link and that the fence on the property of comparable sales two was a wood fence. 17. In the Report, Respondent failed to explain or adjust for the differences between the quality of the fences of the comparable sales and Subject Property. 18. In the Report, Respondent indicated that the construction of comparable sales one and three consisted of brick veneer and that the construction of comparable sale two consisted of brick veneer and wood while Subject Property consisted of metal siding. 19, In the Report or addenda, Respondent failed to explain or adjust for the difference in the quality of construction between the comparable sales and Subject Property. 20. Information Respondent forwarded to Petitioner’s investigator indicated that comparable sale one included a utility shed. 21. In the Report or addenda, Respondent failed to indicate or adjust for the utility shed. 22. In the Report, Respondent indicated that comparable sale two was cooled by a central heating and cooling unit and made a corresponding adjustment for this feature in the sales comparison approach. 23. In the public records information Respondent forwarded to Petitioner’s investigator, comparable sale two was heated and cooled by wall air conditioning units. 24. In neither the Report nor addenda did Respondent explain the discrepancy between the 4 FDBPR v. Larry E. Jacks Case No. 200083163 Administrative Complaint public records and the Report regarding the cooling system utilized for comparable sale two. 25. Respondent’s workfile contained information that there were holes in the walls and ceiling for Subject Property. 26. The Report failed to contain information regarding the holes in the walls and ceiling. 27. The above-stated errors resulted in an inaccurate and misleading appraisal report. COUNT I Based upon the foregoing, Respondent is guilty of fraud, misrepresentation, concealment, culpable negligence, or breach of trust in any business transaction in this state or any other state, nation, or territory in violation of Section 475.624(2), Florida Statutes. COUNT II Based upon the foregoing, Respondent has violated a duty imposed upon her or him by law or by the terms of a contract, whether written, oral, express, or implied, in an appraisal assignment in violation of Section 475.624(2), Florida Statutes. COUNT II Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal or other provision of the Uniform Standards of Professional Appraisal Practice in violation of Section 475.624(14), Florida Statutes. COUNT IV 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. FDBPR v. Larry E. Jacks Case No. 200083163 Administrative Complaint COUNT V Based upon the foregoing, Respondent is guilty of knowingly concealing any information relating to violations of Chapter 475, Florida Statutes in violation of Section 475.626(1)(g), 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 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 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, 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, registrant, or certificate holder to complete and pass additional appraisal 6 FDBPR v. Larry E. Jacks Case No, 200083163 Aduunistiative Complaint 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. (1999) and Fla. Admin. Code R. 61J1-8.002. SIGNED this_ 9 dayof_Z]@q’. , 2002. rofessional Regulation By: Director, Division of Real Estate ATTORNEY FOR PETITIONER Stacy N. Robinson Pierce Fla. Bar No. 182796 FDBPR-Division of Real Estate Legal Section 400 W. Robinson Street, N308A. Orlando, Florida 32802-1772 (407) 481-5632 (407) 317-7260 - FAX PCP: MC/CK/JB 11/02 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573 of the Florida Statutes, is not available for administrative disputes involving this type of agency action. PLEASE BE FURTHER ADVISED that pursuant to this Administrative 7 FDBPR v. Larry E. Jacks Case No. 200083163 Adminisuative Cornplaint 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 of the Florida Statutes; 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 twenty-one (21) days of receipt of this Administrative Complaint, the Petitioner will file with the Florida Real Estate Appraisal Board 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. NETWORK APPRAISAL SERVICES Bie No. 010045 3 October 26, 1998 Homestar Mortgage Lending §728 Major Bautevard Suite 600 Orlando, FL 32819 File Number; 010045 In accordance with your request, | have personally inspected and appraised the rea! property al: 506 MAINE AVENUE PANAMA CITY, Ft 32401 The purpose of this appraisal is to estimate the market Yelue of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements, \n my opinion, the estimated market value of the property as of OCTOBER 19, 1998 js: $48,500 FORTY-EIGHT THOUSAND FIVE HUNDRED DOLLARS The atlachad report contains the description, analysis and supportive data far the canclusions, final estimate of value, descriplive photographs, limiting conditions and appropriate certifications. Larry E. Jacks 0004175 7651-A ASHLEY PARK COURT, SUITE 402, ORTANDO, FLORIDA 32835 407-294-9750 ~~ ww RUOENT L. FURAN, one sefiany Osetriptlon UNIFC: A RESIDENTIAL APPRAISAL RE... RT iis vo, 010048 Property Address 506 Maine Avenue City Panama City State Fl. Tatode 32401 gal Desaiption Lot 9 Black O, Pinecrest Addition Cony Bay ‘Asse sscr’s Parcti No, 22691-000-000 . Tax Yea 1997 RE, Texes3 -O- Special Assessments $ None Bagger Alberta W. Williams Cyrant Owner Alberta W. Wiliams Occupant 1X] Qune [J tenant _ [7] vacari} pesty 0 Project Tyee { ) Pu. Condgminiam (HUDIVA only) _HOAS NIA hs Noghborhaod ge gr Projaci Name Panama City Map Reterenca 123.01 Census Tract 6045.11 _ Salp Price § N/A. Date of Sale NIA, Deseripbon and $ amcunl of loan chargeslooncessions to be parity sete N/A. ~ | Lencercient Homestar Lending Mortgage Corp. address Aguess 2629 Wesl 23rd Street, Suite A, Panama Cit Fl, 32405 Pradaminant Single milly housing Presentland use % & ikscome) peeupaney AGE Jone tomy _ 80% ely Nr a CJ - Staple Slow Owner 5) 24 farnly 5%} [_} in process {X) statis Oeming | C) Tenant 75 igh 80.) vursfamdy 8% | to: Oven Vaan (o5%) Predominent ®€S:) Commercial 5% Somos. 1) Over 6 mos. ‘Yasar (eee 68) 40 | 40 |Vacant, 5% nd tha racial compositien af the nelghberno: Neighbornood boundaries and characteristics: Nortn = 141 hway 77. Factors thal affect ine markplabilty of tha properties in the neighborhood (proximity to employmant and amenities, employment slabilty, appual ta market, atc.) There were no apparent unfavorable faciors which would affect the marketability of the subject neighborhood. The | Neighborhood is convenient to all areas of employer public parks, schools and shopping areas. Appeal to ihe market is average to goad, and is based on price, Jocation and stabilily. ‘fot appraisal ta treet, South - Cherry Street, East - ‘Transmitter Road, West ~ Markat conditions in the subject neighborhood (inghding support far the abave conclygians selaled to the trend of property valuos, comandisupply, and markeling Sing ++ such as dala on campaliive properias for sala in (he naighborhood, dascriplian of the prevatence of sales and financing concessions, atc): An Average and typical amount of listings is found in this neighborhood. No sales or financing concessions were | | | noted. Sales to asking price ration is 90%. The average length of time to sale is 180 days. Trend of property | values is stable based upon sales in the area ec Information far PUDs (if applicabl seroxat lta umber o uit in tne sutject project Topography site Typical for are: ‘Shape Reclanavier. Orainage proved View . Paaencenal Public: ‘Off-eltelmpraveamants Tyne Punic Private] Landsapng Average Glectially Sheet Asphalt x by Oriveway Surface Yaea rr Sy, ia Gas Cub/guier None Apparent easements None apparent Water x Sidewak None (1) | FEMA Specist Flood Hazard Area - a Tis) Sanary sewer Septic Steetights Halogen x. 4 FEMA Zane C Map Date 1/3/96 . ‘Storm sewer Alley None FEMA Map No. 120012 00100 . Commants (apparent adverse easemants, enccoachments, special assessments, side areas, Wagal or lapal nonconforming zoning, uso, etc.): No apparent | adverse easements, encroachments, special assessments or slide areas. Use is jegal and conforming. GENERAL, DESCRIPTION EXTERIOR OESCRIPTION FOUNDATION BASEMENT (NSULATION 7 No. of Units One Foundation Conc.Bik__| stab No drea Sqft. - None Roof Na. of Stories. One Exterior Walls Metal Sdg._| Oanspae Yes. % Finished None Type (DetJAt,) Detached] Roof Sutace AS Basement No Ceiing None Oesign (Style) Rambler_] Guters 4 Dwnspis. None Sump Pump NO. Walls None 4 ExistnigProposd Existing | window Type Alum. S/H | Oampness None noted | Fror None None Fite (vrs.) 51 Years | StrmSoens Yes Scittement None noted | ouside entry None: abseen fr Effective Age (¥is.) 45 Years | Manutaclued House NO. infestouon None App. Fl ROOMS Foyer | ti Dining { Kitcnen J Gen Fomdy fim] Rye Am | Bacrooms | wBains | tamay | Other | Nea Saft & 1 Fa 4 it 3 10 _ oI it 6 = 5 Rooms, SF Bedoom(s) Twain), BET Squgre Font of Grogs (ring Arua i VEATING WTCHEN Equip, TATTIC AMENITES CAR STORAGE: | 3 CptVin/Avg - Type Space | Retigrats (P)| None (F} | Feeptacers) # None [X} Ee] Wals DrywallAvg~_|ru Gas Rangeldven [X]} Stors {)|Paio . 1] | Garage Hofcars TiFaish Wood/Ayg,- Condition Vg ‘Disposal Orup Star Deck Attached Bath Flour atv COOLING. Dishwasher [scuttle X] | Pon 230SFi2 _ Detached bab Marc FGiAvg.- | Genk WAGU | FantHood 2X} Floor Fence Buin Wood/Avg one None Microwave IP} | Heated Poot a) _ CondtonAVg. WasheriDryer__[P]}| Finished Additional features (spectal energy etfictent items, etc,y, [nSulation Condition af the improvements depreciation (physical, functional, and axternal). reparts neadad, quality of cansiruction, remodeling/additions, etc Minor cosmetic sprucing is being noted above This is considered minor in nature and will be considered in the S.C A @ condition of the improvement is Average. with normal depreciation Aaverse anviconmentat conditions (such as, but nol limlod to hazardous wastes, toxic substances, etc.) present in the improvements, on the sife, or in the Immediata vicinity of the subject properly: J Fasale da Farm tee 6 26 Poems neaFam Te oo PAGE 1 OF 2 Ne ee ot etd on AC) Nahi ae rn 85) 3-87 AAR LO rnc Uri Valyation Section UNIF.. vi RESIDENTIAL APPRAISAL RE.-URT FiteNo. 010045 OGTIMATEOSITEVALUE. 0. eee we ES {0,000 Comments cn Cost Approach (such as, source of cog] esilmate ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS: sile vawe, square foot cotevlalien and for HUD, VA and Fiala, the Dweling 967 sq.ft @s_45.00 =5 43.515 astimated remaining economic We of Une property): fal Sa. Fl. QS . The Marshall and Swift cost publication is utilized in Fi Apphances/Utiity Shed = 2,500 the estimated reproduction cost approach to value fry Gaagetapot O sar @s_ 0 = a) Est: Remaining Economic Life 35 yis.to 40 Yrs EA Toial Estimated Cost New an =$ 46,045 Est” Remaining Physical Life N/A Yrs. N/A Yrs_ td Less Physical | Functional | External Land value is derived from vacant land sales in the Fe oesrection $10,501] 0 ss 10500 sas| RECEIVEY : Deprenaled Valve of lmpravements .,., a TTS 38,516 . i “awit” Vawwe at Sie Improvements... wes «5. 3,006 UE? 5 2000 __4 WNOICATED VALUE BY COST APPROACH if 48,515 STEM SUBJECT, COMPARABLE Nod COMPARABLE NO.2 pny OLAS _ | 506 Maine Avenue 9360 9047 Agges Panama Cit Greentree Road Nottingham Drive Greentree Road | Proximity to Subject likens Wace) 8 Blocks Northeast 7 Blocks Northeast 8 Blocks Northeast _ Sales rca s N/A BERORBRRE s 57,000 RNs “48 FOO Lepage s “55 G00 Picton lina [8 TOG als 52.31 ORME s Sd S0 DEMO RIs 46.0 0 Data angior taspection Public Records Public Records Public Records Yevification Sourcas ORB 1803 Page 2072 ORB 1798 Page 1374 ORB 1782 Page 1 VALUE ADUSTMENTS, DESCRETION | -ysaguwen | DESCRIPTION “yingrme | DESCRIPTION oi Sales o Financing Conv. H Conv, ‘ Fi Concessians None Known _{ None Known! None Known, . Dass ot Selena TAIS8. } 6/5/98 p 27198 y Localian Avera Average : Average ‘ gorciiFee Srpa__| Fee Simple Fee Simple + _|Fee Simple Sie _lAverage [Average ! Average View Interior, Interior i Interior Avali Sto Avg/t Story __! Avg/MetalSdg. |Avg/8 53 Years 2 Years Average (+) fd eat gree | tains 2 : 31.00] Ed Go Mt 967 soft. Fa] Saserent &Fricned | NONE £4 Rooms Below Greve fone Fed Functions! Urdity erage Fa Heating ookng pace/WACU ¢ 17} Cneray Es Insulation Insulation A Ingulation i Fe Gaagercxpr “| None ICPACG 3,000) Carport i None : Lo Fd Porch, Patio, Deck, Porches Porct : $00} Porch A Porch t $00 Md Feeprcdy cic. | Utility Shed___ [None ‘ 2,000 Storage Shed {No Adj.|None i 2,000 Fence, Poot, ei, ence Fence i Fence : Fence : i ° i A i Net Adj (otal) at is 4085({]. DM.