STATE OF FLORIDA FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, OB - Os Fi Pec v. CASE NO. 2000-80856 RICHARD JOHN DELUCA, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Richard John Deluca (‘‘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 Richard John Deluca is currently a Florida state-certified residential real estate appraiser having been issued license RD0000783 in accordance with Chapter 475 Part I of the Florida Statutes. 3. The last license the State issued to Respondent Deluca was as a state-certified residential real estate appraiser at 323 Thornberg Drive, Tallahassee, Florida 32312. FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint 4. Respondent developed and communicated an appraisal report for the property commonly known as 8647 Wide Road, Tallahassee, Florida 32303. 5. The Report purports to give a value estimate as of January 24, 2000. 6. The Report indicates that Respondent signed it on October 14, 1999. 7. The Report does not indicate that value was prospective. 8. In the Report, Respondent arrives at the sales price of the comparables by adding the land sales price to the manufactured home’s price. 9. In the Report, Respondent reported the purchase price of comparable number one as $99,000, by his own admission, relying on the seller and the sales agent for the actual sales price. 10. The property appraiser reports the land sale of comparable one as $26,000. 11. The contract for the manufactured home evidences a purchase price of $80,637.00. 12. The combined total purchase price of comparable number one, had Respondent used the land value plus contract price of the home, would have been $106,637.00. 13. Respondent had appraised the land, on or about May 5, 1999, and estimated its value to be $27,000. 14. None of the comparables on the Report are within the neighborhood. boundaries the Respondent defined for subject property. 15. In the Report, Respondent failed to give an explanation for the substantive distance of comparables from the Subject property. 16. In the Report, Respondent states Comparable number one as five miles northwest of the subject property. FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint 17. Comparable number one is fourteen miles northwest of the subject property. 18. In the Report, Respondent states that Comparable number two is five miles northeast of the subject property, yielding an error in calculation of nine miles. 19. Comparable number two is fifteen miles northeast of subject property, yielding an error in calculation of ten miles. 20. In the Report, Respondent states that comparable number three is five miles north of subject property. 21. Comparable number three is eighteen miles north of subject property, yielding an error in calculation of thirteen miles. 22. In the Report, Respondent states that subject property has four bedrooms. 23. The sketch of the subject property that the Respondent included in the Report to depict the subject property represents that the subject property has only three bedrooms. 24. On the Report, Respondent states that the roadways are publicly maintained. 25. Road signs indicate that the roads are privately maintained. 26. In the Report, Respondent stated the gross living area of the subject property as 1900 square feet. The floor plan Respondent included as an addendum to the Report yields a gross living area of 1791 square feet. 27. There was an older mobile home on the comparable number three site for which Respondent failed to explain or adjust. 28. Respondent’s file included no support for the closing date of June 1999 he reported in the Report. FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint 29. Respondent’s file included a purchase and sale contract for comparable number three, which describes the manufactured home as having a gross living area of 2,016 square feet. 30. In the Report, Respondent stated that comparable number three had 1920 square feet of gross living area. 31. Respondent failed to maintain a copy of signed certification as communicated to client. 32. During the course of the official investigation, Petitioner’s investigator obtained from the Respondent’s client a copy of the first two pages of the Report that Respondent communicated to his client. 33, There were significant differences between the Report the client provided and that of Respondent. 34, During the course of an official investigation, Respondent admitted to Petitioner’s investigator that the maps and photographs Respondent provided to the client are different than those Respondent provided to the investigator. COUNT I Based upon the foregoing, Respondent is guilty of culpable negligence or breach of trust in a business transaction 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. FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint COUNT II 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. COUNT IV Based upon the foregoing, Respondent is guilty of obstructing or hindering in any manner the enforcement of this section or the performance of any lawful duty by any person acting under the authority of this section, in violation of Section 475.626(1)(f), Florida Statutes. ADDITIONAL ESSENTIAL ALLEGATIONS OF MATEIRAL FACT 35, Petitioner realleges and incorporates paragraphs one through thirty-four. 36. On or about September 21, 1999, Respondent developed and communicated an appraisal report for the property commonly known as 4065 Bishop Road, Tallahassee, Florida 32310 (Report), but states that the market value of the property was as of January 24, 2000. 37. Respondent signed the Report as the Supervising Appraiser ‘for Jason D. Walker. 38. Respondent stated on the Report that he did not inspect the property. 39, The Report does not state that the value is prospective. 40. In contrast, the copy of. the Report which Respondent provided to Petitioner’s investigator during the course of an official investigation states that Respondent signed the Report on January 31, 2000. 41. In the Report, Respondent reported that comparable number three sold via an FHA mortgage. 42. Inhis response to investigation, Respondent admits that comparable number three sold FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint via conventional financing. 43. In the Report, Respondent included a sketch of the subject property which yields a gross living area of 2,128 square feet. 44, In the Report, Respondent describes the subject’s gross living area square footage as 2,016. 45. The work file that Respondent provided to Petitioner’s investigator did not include support data for comparable number two. 46. In his response to the Petitioner’s investigation, Respondent admits that there was no real property sale in the comparable two transaction, but only a manufactured home sale. 47 To arrive at the reported price of comparable number one in the Report, Respondent added the contract price of the manufactured home to the sale price of the lot. 48. Respondent failed to report, explain or adjust for an existing improvement which remains on the lot, for comparable number one. 49. In the Report, Respondent stated that comparable number two is five miles from subject when, in fact, it is ten and one-half miles. 50. In the Report, Respondent stated that comparable number two is two miles from subject when in fact, it is six and one-half miles. 51. In the Report, Respondent stated that comparables number three and four are five miles from subject when, in fact, it is ten miles. 52. The Report that Respondent provided to Petitioner’s investigator, during the course of an official investigation, differs significantly from that which the investigator obtained from the FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint Respondent’s client. COUNT V Based upon the foregoing, Respondent is guilty of culpable negligence or breach of trust in a business transaction in violation of Section 475.624(2), Florida Statutes. COUNT VI 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 VI 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. COUNT VIII Based upon the foregoing, Respondent is guilty of obstructing or hindering in any manner the enforcement of this section or the performance of any lawful duty by any person acting under the authority of this section, in violation of Section 475.626(1)(f, 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 FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint 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 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 ot _ day of Opt 2002. ) epartment of Business and Professional Regulation By: Director, Division of Real Estate FDBPR v. Richard John Deluca Case No. 200080856 Administrative Complaint ATTORNEY FOR PETITIONER Nancy Campiglia Fla. Bar No. 0164259 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/EC/LM 4/1/02 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 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.

Docket for Case No: 03-000891PL