(2 F927 STATE OF FLORIDA ; DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATIE FLORIDA REAL ESTATE APPRAISAL BOARD FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, v. CASE NO. 200180358 THOMAS G. MAYS, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Thomas G. Mays (“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 RD3197 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 1207 Palm Blvd., Port St. Joe, Florida 32456. FDBPR v. Thomas G. Mays Case No. 200180358 Administrative Complaint 4. On or about February 21, 2000, Respondent and Sandra K. Smock developed and communicated an appraisal report (Report) for property commonly known as 116 Wescott Circle, Port St. Joe, Florida 32456 (Subject Property) and estimated its value at $71,000 as of February 14, 2000. A copy of the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. Pursuant to an official investigation, Respondent forwarded to Petitioner’s investigator a copy of the entire work file for Subject Property. 6. Information contained within the work file indicated that client ordered the Report for an insurance update. 7. Respondent failed or refused to include the Federal Emergency Management Agency (FEMA) Map number, zone, or map date for Subject Property. 8. Respondent knew or should have known that the FEMA map information was necessary for an insurance update. 9. Ina letter to Petitioner’s investigator, Respondent admitted that he provided the client for Report 1 a less detailed report than that usually provided to other clients. A copy of the letter is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 10. In the letter, Respondent admitted that because the client was the only other competing appraiser in the community, he did not want to share with the client any of the company’s “trade secrets,” including boilerplate or general market descriptions. 11. Therefore, Respondent held a bias against the client during the development and communication of the Report. FDBPR v. Thomas G. Mays Case No. 200180358 Administrative Complaint 12. Respondent failed to prominently state the type of report used. 13. In the Report, Respondent erred in indicating the gross living area for comparable sale 14. In the Report, Respondent erred in indicating that comparable sale two did not contain a fireplace, when, in fact, it did. 15. In the Report, Respondent indicated that the actual age of Subject Property was forty years and that the effective age was twenty years. 16. Respondent failed or refused to explain or analyze any renovations to support the difference between the actual age and the effective age. 17. Respondent knew or should have known that such analysis and explanation relating to the age of Subject Property was required to be in the Report. COUNT I Based upon the foregoing, Respondent is guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest conduct, culpable negligence, or breach of trust in any 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. COUNT Il Based upon the foregoing, Respondent is guilty of having failed to exercise reasonable FDBPR v. Thomas G. Mays Case No. 200180358 Administrative Complaint diligence in developing an appraisal report in violation of Section 475.624(15), 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 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. 4 FDBPR v. Thomas G. Mays Case No. 200180358 Administrative Complaint st or to SIGNED this_/° Ly ot e , 2003. Florida Department of Businéss and Professional Regulation By: Director, Division of Real Estate “apartment of Professional Regulation Qivision of Real Estate ATTORNEY FOR PETITIONER Stacy N. Robinson Pierce, Esquire Fla. Bar No. 182796 Division of Real Estate Legal Section 400 W. Robinson Street, N802A Orlando, Florida 32802-1772 (407) 481-5632 (407) 317-7260 - FAX PCP: MC/JB/CK 2/03 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 FDBPR v. Thomas G. Mays Case No. 200180358 Administrative Complaint 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. APPRAISAL REPORT OF | tla 116 Wescott Circle Port St. Joe. FL 32456 AS OF: 2134100 PREPARED FOR: W. Date Borden 116 Wescott Circle Port St. Joe, FL 32456 PREPARED BY: Market*Max Appraisal Group Sandra K. Smock 1207 Palm Blvd. Port St. Joe, FL 32456 ADMINISTRATIVE COMP EXHIBIT + _|[ yj te A PAGE _ ADMINISTRATIVE COMPLAINT EXHIBIT # i pace __-_ 7 OF Properly Description Market*Max Appraisal Group UNIFORM RESIDENTIAL APPRAISAL REPORT rite no. _116 Wescott Circle. ._ City Port St, Joe Stee FL ZipCoda___ 32456. ity of Port St. Joe be County _. Gulf, ‘Assessor's Parcel No. _ 04984-000R “Tax Year 1999 RE. Taxes $ “487.11 Special Assessments $ nla Borrower ale Cunent Owner W. Dale Borden Occupart_|Xiowner ltenan | |vacant Property rights appraised |X \Fee Simple | Leasehold Projet Type | PUD | _;Condeminium (HUBIVA only) Ma Neighborhood o¢ Project Name. Port St. Joe_ woo Reterance na _Sale Pr _a ae 0 charges/concess Wa. ” LenderiChert W, Dale Borden _ Address 116 Wescott t circle, Port St. Joe, FL 32486 Apprarset Sar Address 1207 Palm Blvd, Port St, Joe, FL 32456 ‘Location [X Urban Troma) | Predominant | Single family housing [Present land use % | Land ust change Buit up pow 75% —_|Under 25% | Sccupancy 00) Gn [One famity 85 i [X_]Not skety L_ikikety Growth rate | ‘Slow ! |X ‘owner 40 tow 4 |2-4famiy 5! Tin process Property values [Rlnceoning (stable [ Dectining | {Tekan 395 High 50. | Mutiotamity | Te: Demand/supply| Shortage | X'Inbatance| :ove supply | X Vacant 0.5%) |__: Predominant Commercial 5 1 Marketing time | —'ynger3moe_[X13-6 mos. [lover 6mos.' | “Ivecanionsm 85 | 25 “Vacant 5 ‘Note: race and the racial compasition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: Inctusive of the City of Port St. Joe, bounded on the north by. Hwy 71, east. by Garrison Avenue, west by Constitution Drive/Hwy 98 and south by Cabell Drive, a neighborhood predominantly of single family homes| Factors that alfact the markatabilty of the properties in the neighborhood (proximity to employment and amenities, emplaymert stability, appeal to market, et.) See Comment Addendum — ete + — — COOLROWIO-—me Mania conditions in the subject neighborhood (including support for the above conclusions related to the trend of proparty = such 95 data on compettive properties for sale in the noighbochood, description of the prevalence of sales and financing concessions, atc.) in balance, Marketing time will average six months. Sales and financing concessions are not ject Information for PUDs (If applicable) ~ Is the developer/buildes in control of the Home Owner's Association (HOA)? : Approximate tolal number of units in the subject project __. Approximate total number of units for sale in the subject project Describe common elements and recreational facilities: ___.| Dimensions 75 x 180 x 75 x 180 . _ Topography bevel Stearea . 13: 500st Corner Lot T ves Two Size lac Specife zoning classification and description R-1 Residential__ Shape ——___Rectanaylar___ Zoning compliance [X]Legat [_!Legat nonconforming (Grandlatnered ute} | No Zoning Run-offfabsorb. Highest & best use as improved [X;Present use |_| Other use (explain) _ Residentiat Utilities: Public Other , Off-site improvements — Type Public Private } Landscaping __ Adequate Electricty = [X]_ | street _. _.. Asphatt. [X] 5 | briveway Surface Concrete oes [xl | 17) [apparent escements I _ : [7] [2] [FEMA special Ftoos _ Sodium Electric 4 = FEMA Zone _ None. || | FEMA Map No. GENERAL DESCRIPTION EXTERIOR DESCRIPTION FOUNDATION BASEMENT INSULATION No. of Units 1 Foundation __. Slab__} stab Yes. Area Sq Ft NIA. Root I No, of Stories. 1__. | Exterior Walls C.Blk Crowd Space No % Finished N/A Ceiling tC Fy Type (Devan) — Detached | Root Surtace Comp Shg | Basement No Coiling NIA Walls | EY Design (Style) Ranch _| Guters & Dwmsps. None. Sump Pump N/A__| Walls __.. NIA. Floor | £4 exstingPropoted _ Existing SIH Alum | Oampness — None noted | Floor NIA | None i BM Ace (vrs) _ 40 | __ 1/2 Sern | Settlement Ougside Entry N/A___| Unknown, (x BA Enective Age (Vis) 20 No Infestation BY ROOMS |__Foyer Den |Family Rm| Rec. Rrn. Bedrooms | #8aths | Laundry | Other | Area Sq. Ft i easement _ {od | - NA. fy tet | | 3 400 | + 1,374 |_Level 2 _ _ i \ _ _ a i - - L.A i a eee ee Hal Finished area_above_geade cortains: 5 Rooms; 3___—Beetroom(s), 1.00 Bathis); “1374 Square Feet of Gross Living Area ie} INTERIOR Materials/Condition | HEATING | KITCHEN EQUIP.: ATTIC AMENITIES CAR STORAGE BE Floors CrptVnylAva | Type FHA | Retrigerstor [J Nona f Fireplace(s) # None [| by waits —Brwelvva— Fuel RangaiQven X] Stairs |_| | Patio . "| Garage 1 # of cars iq TanvFinish * Condition _A ne j Disposal — ||| Drop Star : | | Deck } Attached BG ean Floor VinWAwn 7 COOLING. Dishwasher [_]}i Scuttle _X] | Porch Front Detached = Yes Bath Wainscot CTile/Ava__' Centrat __ Yes FawHtood | ) Floor |_| | fence _Chn ink iX!) Basin Doors Int: Hew CorefAvg | Other _ : Microwave {| Heated —_| | Pool “F careort Ext: Wood/Ava, Condition Avg! WashoriOryer! |" Finished ! i Additional features (special energy efficient tems, etc): See Con {Addendum ‘Condition of the improvements, depreciation (physical, functional, and external), repairs needed, quality of construction, remodeling/addttions, #tc.: Quality of construction is “average,” depreciation within normal range for AYB 1960 averse envvonmertal conditions (auch e2, bul nol bmiied 10, hazardous wastes, (onic Substances, ofc.) present in tha impfovements, on the site, or in the immediate vicinity of the subject propety: None noted. Freddie Mac Form 70 6-93 ‘CictFORMS Rea! Extale Apprainal Software by Braatora Tectootopies (800) 827-8727 Fannie Mae Form 1004 (6-93 iG ADMINISTRATIVE COMP LAINT. EXHIBIT F#W Market*Max Appraisal Group Valuation Section UNIFORM RESIDENTIAL APPRAISAL REPORT File No. ESTIMATED SITE VALUE =3______ 15,000) Comments on Cost Approach (such as, source of cost estimate, ESTIMATED REPRODUCTION COST-NEW-OF IMPROVEMENTS site valve, square foot calculation and for HUD, VA and FmHA, (he fy Owelling 1,374 SoM @s 4860 «$s 66.776 estimated remaining economic life ot the propeny):Cost estimates ES CyvdPro 42 Sq Ft@$ 11.71 = _._ 492 per Marshall_& Swift Residential Cost_Handbook v oo - quality construction. Adjusted for climate, foundation, Fy Garage/Carport 473 Saft.@s_1949 = _ ___ 9,218 floorcover, warm: 3 plumbing fixtures, Bil. [oy Total Estimated Cost New =S 76,487 appliances and loc: iding costs, Site Value per BY ess Physical 18% Functional | External historical sales. Site Improvements include paved Fry Depreciation _13.768_ _——_! ns J 1 drivewayfwalkway_and fencing, FA Depreciated Valve of Improvements “sy. 6271 . . “As is? Value of Sie Improvements 3 2,000 _ oe INDICATED VALUE BY COST APPROACH =3 ‘ 79.719 Est Rem Econ Lite: 40 Ss Site/Total_ 19%. sATEM SUBJECT | COMPARABLE NO. "1 COMPARABLE NO 2 COMPARABLE NO 3 116 Wescott Circle 120 Wescott Circle 1805 Garrison Avenue 1302 Palm Bivd Address __ Port St. Joe Port St. Joe Port St. Joe Port St. Joe Proximty to Subject | M2 block | A le eee Pmile Sales Price $ na! 75.500 ‘s__ 72,000 $__, 68,000_.. PreeiGossiw Aca $0.00. (18 $593. b $s. 5042. $s. 6299 1 Data and/or | Public Records | ORB 232/845 & Files ORB 228/027 & Files ORB 232/773 & Files Verification Source Inspection | External Inspection __|__Extemnal inspection VALUE ADJUSTMENTS | DESCRIPTION i, DESCRIPTION __+(j$ Adjustment] DESCRIPTION, (8 Adjust None found "None found 9129199 _ — 6/15/99. ~ a AIS199. Le yban__|___Urban__._| -- Urban, Urban Leazehold/Fee Simple | _Fee Simple _.|_ Fee Simple. . | -Fee Simple__ _Fee Simple | ____..|_ 75 x180__;___75x180__ |... - 75.x 180 . 70x.150,___| Y Residential | Residential Residential Residential | | .. Ranch/Ava, _ | Ranch/Ava a Ranch/Ava _.. ..., Bungalow/Ava con 1 Average |__ Average __j Averane.___ ww Average 0 § AAQIEH20 |. A20/Eff 10. AAOIEHt 20 AGO/EH 30 ry c Avera: , Abo e Average | _6,000__ Average | .__. |... Average. eee E tou airy me am are i” out | aime | gare | eat a® 1.00 | 5] 3.) 1.00 5 | 3 200 -3,000, 1,00 oG , 374__Sq.Fty 1,350 Saft} 1478 8q.Ft] 1,350, .1,080__$q Ft +7,35Q 4 na nla Wa na H A i Average ; --- Average _. — Average || _. |. Average _ 3 FHAYes ; FHAYes FHAYes FHA/Yes NE Standard _j __ Standard. _| wa {Standard |. __.| .... Standard A Det. Garage | . Att. Carport “4,500, Att. Carport _. +1500 None a Front porch} Front Porch Front Porch Front Porch s _No Not. iy ee 8 Chn Lnk fence | No . Yes * row nn T+ Tk}-_s ._-5,.850 Adjusted Sales Price Inet: -8% f Comparable. : -—IGsoas:_ 8% ' _.66, Comments on Sales Comparison (including the subject property's compatibiity 0 the neighborhood, atc): See Comment Addendum TEM |_SugJecT _|____ COMPARABLE NO. _, COMPARABLE NO.2 J COMPARABLE NO Date, Price and Owe [n/a n/a nia nla Source, for prior sates | Dept. off | Dept. of Revenue Dept. of Revenue Dept. of Revenue thin year of appeal. Revenue analyte of any 2unenteprement of sl, oplon, a ining of he subj propery and anaiyis Of any po sales of subject and comparatice wrtn ane yeaa the date of apres nia INDICATED VALUE BY SALES COMPARISON APPROACH $ 70,000 INDICATED VALUE BY INCOME APPROACH (If Applicable) Estimated Market Rent $__—---_/Mo.x Gross Rert Mutiplieg _—-—— =$ “This appraiatis mado _X]"0s i [__ subject to the repairs, alerations, inspections or condtions listed below | _Taubject to completion par plans and specifications Conditions of Appraisa: See Addendum. Final Reconciliation: The he Sales Comparion Approach | the best guide to value. Giving the Sales Comparison Approach 90% Bd weight and iiation yields a final value indication of $71,000. oo c Fine purpove of Win approital i to ettmate the marhat value ofthe ret propery tbat is tubject to tvs report, based on ihe above conditions and the certification, contingent CF ad isting condkions, and market vaiue defrtion that ora stated in the attached Freddle Mac Form 438/Fannie Ms Form 10048 (Revised ..____ - bg | (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 2114/00 EW (WHICH IS THE DATE OF I TION AND THE EFFECTIVE DATE OF THISREPORT)TOBES = 71000 Hi APPRAISER: SUPERVISORY APPRAISER. {ONLY IF F WF REQUIRED! Fed Signature a ( ere CO “ Signatute_— ‘k a L ‘pia: XJoia Not Name, _ Smock Name —ss—C__sTtXomas ©-Mays ” inspect Property Date Repon Signed_ February et 20 _ Qete Report Signed February 21,2000 _ . . ‘State Contification & State __ State Cenlifcation #_0003197 St Cert Res Rea _ _, State FL Or State License #__ 0006070 St Reg Assist Rea Stato_FL___ Or State License # State Freddie Mac Form 70 6-93 (CHehFORMS Real Estate Apprassal Sofware by Brawtord Tecnnologes (900) 622-6727 Fannie Mae Form 5004 (6-93 ADMINISTRATIVE COMPLAINT EXHIBIT 4 rn PAGE A OF _1y —— COMMENT ADDENDUM File Ne NEIGHBORHOOD MARKETASILITY Subject's neighborhood is on the north side of Port St. Joe, close to schools, shopping and church facilities, giving it good appeal in the local, permanent home market. Employment stability is only fair given the permanent shut down of the Florida Coast Paper mill. While this economic downturn has not yet (after a year and one-hatf) lead to a mass of foreclosurés, we are now seeing homes being offered for sale by mill workers who are relocating. However, the current total inventory of homes being offered for sale does not exceed demand. This is mostly because of the fact that there is a countervailing positive trend bringing buyers to Port St. Joe/Gulf County. St. Joe Land and Oevelopment Corporation, the owner of 90% of the land in Gulf County, is aggressively planning major residential community development in Gulf County, including devetopment of its beachfront holdings. St. Joe Corp. plans to develop a number of PUDs ranging in size from 1000 to S000 residential units priced from $250,000 - $1,500,000, combined with recreational and commercial resources. The prospect of this development ts attracting buyers to Gulf County and Port St. Joe who believe homes are now selling at a discount to future values and that dramatic appreciation in property values is probable. Thus, the overall real estate market in Port St. Joe is actually better than in the recent past when there was an undersupply of homes. ADDITIONAL FEATURES Exterior: Concrete driveway & walkway, landscaping. Interior: Kitchen wiwall oven and range top, dol porcelain sink, ceramic tite partial wall, wallpaper border; bath with ceramic tite wainscot and floor, waitpaper, carpet and ceiling fans throughout. SALES COMPARISONS COMMENTS . Comparable #1 was adjusted -5000 to account for its above average condition and -1500 ta account for its attached carport. Comparable #2 was adjusted -3000 to account for its two baths, -1350, or $25/sf of GLA, to account for its greater GLA and -1500 to account for its attached carport. Comparable #3 was adjusted +7350, or $25/sf of GLA, to account for its lesser GLA. Comparable #1 is the best guide to value given its proximity to the subject, similar location and site value, toom count/baths and GLA. Comparables #2 and #3 are also good guides to value given their similar site values, design, condition and room count. Giving Comparable #1 50% weight and Comparables #2 and #3 25% weight each, the Sales Comparison Approach yields a value indication of $69,876 or $70,000 rounded. (ChckFORMS Real Estate Appraisal Software by Bradtord Tectinotogies (800) 672-8727 ADMINISTRATIV E COMPLAINT DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowedgeably and assuming the price is not affected by undue stimukis. Implicit in this definition is the consummation of a sale as of a specified date and the passing of tite from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) beth parties are well informed or well advised, and each acting in what he considers his own best interest, (3) a reasonable time is altowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions" granted by anyone associated with the sale *Adjustments to the comparables must be made for special or creative financing or saies concessions, No adjustments ate necessary for those costs which are normally paid by sellers as a result of tadition or law in @ market; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by compansons to financing terms offered by a third party institutional lender that i not already involved in the property or transaction. Any adjustment should not be calculated ‘on a mechanical dotlar for doltar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions hased on the appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1 The appraiser wit not be responsibte for matters of a legal nature that affect either the property being appraised or the tite to it The appraiser assumes that the tite is good and marketable and, therefore, will not render any opinions about the ttle. The property is appraised on the basis of it being under responsible ownership, 2. The appraiser has pravided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 2. The appraiser has examined the availabie flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not @ surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4 The appraiser will not give testimony or appear in court because he or she made an appraisal! of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements. at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid 4 they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became ‘aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowedge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or fess valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser ts not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be tue and correct. The appraiser does not assume responsibilty for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion fer an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 40. The appraiser must provide his or her prior written consent before the fendericlient specified in the appraisal report can distribute the appraisal report {including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower, the mortgagee or its successors and assigns; the mortgage insurer; consultants, professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state ot the District of Columbia, except that the lendericlient may distribute the property description section of the report ‘anly to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must alsa be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media ‘CichFORMS Real Estate Appraisal Sottware by Biagiord Technolog. (800) 672-8727 Freddie Mac Form 439 (6 93) Funnie Mae Form 1004B (6-95) . a) q APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that 1. thave researched the subject market area and have selected a minimum of three recent sales of properties most similar ‘and praximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If @ significant item in a comparable property is superior to, or more favorable than, the subject property, | have made @ negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, | have made a positive adjustment to increase the adjusted sales price of the comparable. : 2. {have taken into consideration the factors that have an impact on vatue in my development of the estimate of market value in the appraisat report. ( have not knowingly withheld any significant information from the appraisal report and | + believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct 3. 1 stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form 4. (have no present or prospective interest in the property that is the subject to this report, and | have no present or prospective personal interest or bias with respect to the participants in the transaction. | did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report an the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners of occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. | have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6 | was not required to report a predetermined value or direction in value that favors the cause of the client or any we, felated party, the amount of the value estimate, the attainment of a specific result, or the occurrence af a subsequent event : in order to recerve my compensation and/or employment for performing the appraisal. | did not base the appraisal report “ on a requested minimum valuation, a specific valuation, of the need to approve a specific mortgage loan, 7. 1 performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply | acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate | developed is consistent with the marketing time noted in the neighborhood section of this report, unless | have otherwise stated in the reconcifiaton section. . 8. | have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. | further certify that | have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which | am aware and have made adjustments for these adverse conditions in my analysis of the property value to the : extent that | had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. | personally prepared af conclusions and opinions about the real estate that were set forth in the appraisal report. If | felied on signficant professional assistance from any individuat or individuals in the performance of the appraisal or the preparation of the appraisal report, | have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. | certify that any individual so named is qualified to perform the tasks. Ihave not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, | wil take no responsibility for it SUPERVISORY APPRAISER'S CERTIFICATION: Wa supervisory appraiser signed the appraisal report, he or she certifies and agrees that: | directly supervise the appraiser who prepared the appraisal report, have reviewed the aporaisal report, agree with the statements and conclusions af the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibilty for the appraisal and the appraisal report ADDRESS OF PROPERTY APPRAISED: . 116 Wescott Circle, Port St. Joe, FL_32456. oe ret h ADMINISTRATIVE CO MPLAINT wee APPRAISER: SUPERVISORY APPRAISER {only if required) ? Signature: Signature: _ fh Name Name homas G. Mays__<" Date Signed Date Signed: _ February 21,2000 State Certification # _ _ State Certification # 0003197 St Cert Res Rea. or State License #: 0006070 St Req Assist Rea_ or State License # State FL oe State. | oe __. . Expiration Date of Certification or License: _ 17/30/00. Expiration Date of Certification or License: 11/30/00 |] 00 — £X] did Not inspect Property Freddie Mac Form 439 6.93 “CochFORMS Real Estate Appratal Sctware by Brautord Technologies (800) 622.8727 Fucnie Mee Form 10048 6 93 7% ADMINISTRATIVE COMPLAINT. Markel“ Max Appraisal Group. USPAP COMPLIANCE ADDENDUM SUBJECT : Borrower, W. Dale Borden. — _ oe Property Address: 116 Wescott Circle oe eee a . . a Cty: Port St. Joe County: Gulf lorida _ 3 _ Zip Code: 32456, Lender/Crent: va PURPOSE OF THE APPRAISAL To_determine fair market value. SCOPE OF THE APPRAISAL The Sales Comparison Approach was. considered and employed, The Cost_Approach was considered Income Approach was not employed because of a lack of market data to determine GRM. and employed. The ts the subject property currerdly listed? Has the property sold during the prior year? List Pree $ UW yos, describe below: ‘What #s your estimating time for the subject period? six months ___ Based on_an analysis of historical sates data. ‘Does Ihe transaction iavotve the transfer of personal property, futures, oF intangibles that aro not real propery? It yes, provide description and valuation below: ADDITIONAL LIMITING CONDITIONS OR ADDITIONAL COMMENTS ay 3 _ Mok 2131100 of 7 4 / page 3 8. W. Dale Borden is wrong. Comparable #3 has a wood shed at the rear of its property accessed from the street by an ancient divided/parallel “concrete” drive. The width of the opening/doors to said shed, when closed, is a mere 7'9” wide. This would be reduced to approximately 7’ when opened. Given the average width of modern automobiles /trucks, said shed cannot provide “car storage.’ (Rather, it may be suitable fora motorcycle, or perhaps a buggy - or maybe a smal! horse). But certainly, the average buyer would not attach value to it as it may relate to “car storage.” 9. In regard to fences and outbuildings in general, in our opinion and, in the opinion of other appraisers who know the market in Port St. Joe, market data does not show that buyers attach value to aged, functionally obselete outbuildings. Nor does market data show that buyers attach value to aged, outmoded fencing. Given this fact, we noted the presence of these in our file but did not choose to confuse the issue by noting them in the sales comparison approach Portion of the summary report. Moreover, given the above and the nature of the subject's “detached garage” and the fact that market data does not show that buyers attach value to it, an analysis relating to subject’s “detached garage” to various outbuildings /fences present among the comparables, was moot. 10. W. Dale Borden must be a swammy - or maybe “Carnack the Great.” First, given the unreliability of the Property Appraiser’s information, we are always reluctant to “assume” their information is correct. So, we always rely on visual verification when possible per USPAP. No visual verification of Comparable #2’s so-called finished screened porch was possible. Nor could we reach the sellers or buyers by phone. An analysis of the Property Appraiser’s sketch (see copy) did not show the depth of said screened porch. One intrepretation of the sketch would be that it had a depth of 4’ (see Property Appraiser’s sketch: dimensions 244+14=38; 42-38=4) (?). An analysis of the Property Appraiser’s stated heated GLA indicated to us that this porch has probably been enclosed. Otherwise, the Property Appraiser's 1428sf GLA calculation would be in excess of the dimensions shown on the Property Appraiser’s sketch (see our notes on the sketch). Thus, we reasonably presumed this “screened porch” area was part of the home’s GLA. W. Dale Borden is correct - Comparable #2 does have a fireplace. In this case, our appraisal may have been misleading, but not intentionally so. Market data of sales of homes with and without fireplaces in Port St. Joe, and in off-beach locations like Seashores, Gulfaire and Unit 14 of Mexico Beach, does not show that buyers will pay a premium for a fireplace. This is supported again and again by paired sales analyses. We should note that just the opposite is true for gulf front/homes close to waterfront (i.e. 1st through 3rd tier) - evidently being a function of cooler temperatures and/or design/appeal. Thus, because the subject had no fireplace, our notation of “no” on the appraisal actually meant “n/a” or no analysis. If we had noted the fireplace, then an explanation would have been in order and, as noted above, because Mr. Borden is a competitor, we were reluctant to inform him/give him the fruits of our analysis in regard to fireplaces: Given our above information and explanation, we do not believe that the typographical error (re map 50D instead of map 50A) and/or the omission of a notation and explanation regarding Comparable #2's fireplace are errors/omissions creates an appraisal that is misleading. Finally, had we relied solely on the Property Appraiser’s information in regard to the analysis of these comparables, we believe it is evident that our appraisal would indeed have ADMINISTRATIVE COMPLAINT EXHIBIT # ea PAGE OF 4— page 4 ‘been misleading - the final value indication would have been significantly different from the estimate of market value provided by our appraisal as performed. Sincerely, “Trang eng Thomas G. Mays, St Cert Res Rea (#0003197) andra K. Smoc , St Reg Assist Rea (#0006070) ADMINISTRATIVE COMPLAINT EXHIBIT #3 PAGE 4 OF va YS

Docket for Case No: 03-003934PL

Issue Date	Proceedings
Nov. 18, 2003	Order Closing File. CASE CLOSED.
Nov. 17, 2003	Motion to Relinquish Jurisdiction (filed by Petitioner via facsimile).
Oct. 30, 2003	Order of Pre-hearing Instructions.
Oct. 30, 2003	Notice of Hearing (hearing set for December 11, 2003; 10:00 a.m.; Port St. Joe, FL).
Oct. 28, 2003	Letter to DOAH from T. Mays (response to Initial Order) filed.
Oct. 27, 2003	Unilateral Response to Initial Order (filed by Petitioner via facsimile).
Oct. 22, 2003	Administrative Complaint filed.
Oct. 22, 2003	Election of Rights filed.
Oct. 22, 2003	Request for Administrative Hearing filed.
Oct. 22, 2003	Agency referral filed.
Oct. 22, 2003	Initial Order.