, Pde gs STATE OF FLORIDA a7 a & D DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION“ ~5 FLORIDA REAL ESTATE APPRAISAL BOARD nobis, > Pip 00 FLORIDA DEPARTMENT OF BUSINESS & “HE ut 5 iy oe PROFESSIONAL REGULATION, “AR ins / Ye DIVISION OF REAL ESTATE, Petitioner, v. ) CASE NO, 2005044590 MIKE GOMEZ, | a Respondent, Ol ~ | 0 SOP / ADMINISTRATIVE COMPLAINT ‘The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Mike Gomez (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 general real estate appraiser having been issued license 2795 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 general real estate appraiser at 15165 NW 77" Avenue #2004, Miami Lakes, Florida 33014. 4, On or about March 24, 2005, Respondent developed and communicated an appraisal report for a commercial property commonly known as 142 W. 21st Street, Hialeah, Florida 33010 FDBPR v. Mike Gomez Case No. 2005044590 Administrative Complaint (Subject Property), and estimated its value at $293,000. A copy of the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. Respondent states on page 8 of the Report that it is both a Limited Report and a Summary Appraisal Report; however, pursuant to the Uniform Standards of Professional Appraisal Practice, there is no such thing as a “Limited Report.” Further, the Report fails to contain all the information required in a Summary Appraisal Report, and fails to contain information needed by the client. A copy of correspondence from the lender to this effect is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 6. The Subject Property is a used car dealership with a structure on it, and is located on a major highway; as such, it is a commercial-zoned piece of property. Respondent utilized residential- zoned comparable sales in the Report that are located in residential neighborhoods. 7. Inthe Report, Respondent appraised the Subject Property as if vacant. The appraisal order form does not request that the appraisal be developed as if the Subject Property was vacant land. Respondent failed to provide an explanation of his decision to appraise the land as if vacant. A copy of the appraisal order form is attached hereto and incorporated herein as Administrative Complaint . Exhibit 3. 8. The appraisal order form did not request that a retrospective appraisal be developed; yet on page 7 of the Report, Respondent states that he inspected the property on September 19, 2003, and states the estimated value is as of that date. | 9. Respondent misstated the zoning of the Subject Property. Respondent stated it was located in the City of Hileah, and zoned by Miami Dade County; however, the Subject Property was 2 FDBPR y. Mike Gomez / Case No. 2005044590 Administrative Complaint actually zoned by the City of Hileah. 10. Respondent failed to state the correct client in the Report; on page 6 of the Report, Respondent states the lender is Pier 21 Mortgage, yet the appraisal order form is from Pier 51 Mortgage. On page 11 of the Report, Respondent states the client is Cap Prust Corp., yet correspondence to Complainant denying the loan is froma company named Interbay Funding, LLC. 11. Although Respondent appraised the Subject Property as if vacant, Respondent stated on page 33 of the Report that the Highest and Best Use of the Subject Property would be the present use, “as an auto repair shop building,” The Subject Property is not an “auto repair shop building;” it is a used car dealership. Further, it is illogical to evaluate the Subject Property as if vacant, yet to state that the highest and best use is its current use with the structure, 12. Respondent failed to state the price range and age range of the Subject Property neighborhood. Respondent failed to break down and state the percentages of present land use of single family, 2-4 family, multi-family and commercial structures in the Subject Property neighborhood. 13. Respondent made the following errors or omissions in the Sales Comparison Analysis Section of the Report: A. Failed to list the structural Square footage of the comparable sales; B. Failed to keep and maintain documentation in the work file to support the adjustments made to comparable sales 1, 2, and 4 for “economic trends;” . C. Failed to keep and maintain documentation in the work file to support the adjustments made to comparable sales 1,2, and 3 for site location with respect to “corner” versus “interior;” FDBPR v. Mike Gomez Case No. 2005044590 Administrative Complaint D. Failed to make any adjustments to comparable sales 1, 3, 4, and 5 for having significantly larger sites than that of the Subject Property; E. Failed to include the structures in the evaluation of the comparable sales; F. Failed to state the proximity of each comparable sale to the Subject Property; G. Failed to keep and maintain any documentation in the work file regarding comparable sale 5; H. Comparable sale 4 is a vacant lot that is zoned commercial, yet it appears to be located in a residential neighborhood; I. Comparable sale 3 was 1 % years old when the Report was developed and communicated; J. Comparable sales 1, 2, and 3 are zoned residential when the Subject Property is zoned commercial. 14, Respondent has one prior disciplinary action in Final Order BPR-2005-02526, dated May 13, 2005. A copy of the Final Order is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. COUNT I Based upon the foregoing, Respondent is guilty of having been found guilty, for a second time, of any misconduct that warrants disciplinary action, or has been found guilty of a course of conduct or practice which shows that he is incompetent, negligent, dishonest, or untruthful to an extent that those with whom he may sustain a confidential relationship may not safety do so in violation of Section 475.624(10), Florida Statutes. FDBPR v. Mike Gomez : Case No. 2005044590 Administrative Complaint COUNT I Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard Rule 1-1(a), (b) and (c), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT II Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard Rule 1-2(a) and (d), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT IV Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal specifically Standard Rule 1-3(b), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), . Florida Statutes. COUNT V Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard Rule 1-4(a) and (c), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. FDBPR v. Mike Gomez Case No. 2005044590 Administrative Complaint COUNT VI- Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard Rule 1-6(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT VIL Based upon the foregoing, Respondent has violated a standard for the development or communication of areal estate appraisal, specifically Standard Rule 2-1(a), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT VII Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard Rule 2-2(b)(i), (vi), and (viii), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT Ix 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 X Based upon the foregoing, Respondent is guilty of failure to retain records for at least five years of any contracts engaging the appraiser’s services, appraisal reports, and supporting data FDBPR v. Mike Gomez Case No. 2005044590 Administrative Complaint assembled and formulated by the appraiser in preparing appraisal reports in violation of Section 475.629, Florida Statutes, and, therefore, in violation of Section 475.624(4), 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 FDBPR v. Mike Gomez Case No. 2005044590 Administrative Complaint order; or any combination of the foregoing which may apply. See Section 455.227, Fla. Statutes and Florida Administrative Code Rule 61J1-8.002. F ae SIGNED this St\y_ day of Ockeler , 2006, Aw Florida Det ent of Business and Professional Regulation Dennis J. Yecke Deputy Secretary for Professional Regulation ATTORNEY FOR PETITIONER SET IATEMNE OF Division - a ie" Wee CG - 9 Racquel A. White, Senior Attorney Fla. Bar No. 0392669 Division of Real Estate Legal Section 400 W. Robinson Street, N801 Orlando, Florida 32801-1757 (407) 481-5632 (407) 317-7260 - FAX PCP: 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 allowed by law, a hearing to be conducted in this FDBPR v. Mike Gomez Case No, 2005044590 Administrative Complaint 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. Quad Allstate Appraisal Services, Inc. 13165 NW 77 Ave, Suite 2004 Miami Lakes, FL 33014 Phone: 305-556-8890 Fax: 305-556-4843 Email: allstateappraisals@covad.net LIMITED SUMMARY APPRAISAL REPORT 142 West 21Street Hialeah, FL 33010 AS OF March 24%, 2005 PREPARED FOR Cap Prust Corp 10520 NW 26 St, #C10] Miami, FL 33172 PREPARED BY Mike Gomez asa eae osc) aT a EXHIBIT #__| ge i ‘AGE GF ye Allstate Appraisal Services, Inc. . State Certified General Appraiser RZ-2795 Tr. 15176 NW 77 Ave, #2004 Miami Lakes, FL 33014 Phone: 305-556-8890 Fax: 305-556-4843 April 14, 2005 Cap Prust Corp - 10520 NW 26 St, #C101 Miami, Fl 33172 Re: — 142 West 21Street, Hialeah, FL 33010 Dear Mario: Pursuant to your request, we have prepared an appraisal for the above mentioned property. The purpose of this appraisal is to estimate the market value of the subject Property'sfee simple interest for financing decisions and loan undermrriting. This appraisal is intended for the use of the client only. : The limited summary appraisal report has been completed in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP) and applicable Federal Regulations, We certify that we have no present or contemplated future interest in the subject property beyond this estimate of value. Your attention is directed to the Limiting Conditions and Assumptions, located on page 40. Acceptance of this report constitutes an agreemeni with these conditions and assumptions. In our opinion, the value of the subject property as of March 24, 2005 was: $293,000.00, 0 Soe Two Hundred Ninety Three Thousand Doliars 00/700 . The attached report details the scope of the appraisal, level of reporting, definition of value, valuation methodology and pertinent data researched and analyzed in the development of this appraisal. T.M. Auto Sales, inc. - Page 2 of DMINISTRATIVE COMPLAINT EXHIBIT #__( PAGE OF Allstate Appraisal Services, Inc. Respectiully Submitted, Like dics coal Mike Gomez State Certified General Appraiser R7-2795 PAGE 2 Allstate Appraisal Services, Inc. TABLE OF CONTENTS INTRODUCTION SUMMATY Of SalIONt FACHS ..rsssseessseensesstenseenssesssstinstiuseiusasssstivasiieseeeceeccecce, 3 Certificate Of APPrOisal ...cccsssscessseseccsssemsessssesssescesee.-. ite) Assumptions & Limiting Conditions.. GENERAL INFORMATION Purpose Date & Function Of APPICISC .....suessseessssnvsssssessssesenatnisamssiusssesseeeccc. 12 Market VOlUG....asesecssessnssssssccsserasstessssssesassesssseceses 12 Interest Appraised... 12 FEE Simple Estate oo. asacsssssssssemnsssssssssssansssssssssssenessesssstssstusssssssssescncn, 12 State of Florida Regional Analysis. Miami-Dade County Analysis. ‘ GeOGrAPHiC ANAIYSIS...-sssssreseensseissennstinatieiissniinmunininuiscen 19 Neighborhood Analysis .........ssssssssesssssssusssssssseesnsstsecccecsecc, N@IQhDorhOod Map sessssssssssssssssssmssssssssssssnsssssssssessusssssssssssesecccn . Property data....... 26 Highest and best US€ ....esssccssssessssssssitsnusssnssssstiaisieecccmnne 129 VALUATION © Valuation Methodology .....ssssssssscvsseuesstecssssisastssassssiianessstiasisiussssesssese, 32 COSt AD PIOGCH wosssssussssssssesseeessssessseesenssetessusssstiisunacesietiicccnn, 33 Sales Comparison Approach.. 2 84 Discussion of Market Sales ......, 186 Reasonable Marketing PEO”... ssessssesssnersssiesesen, 37 Comparables Map wo... Hiesemeseereeseenmesenecnsseessmasesesesesessaces + O7 Comparable Photos .....eucssssccssessusecsrssessrease 06 38 Income Capitalization approach to value Reconciliation ADDENDA SUjECt PHOLOGFAPNS ......swesssssssssmesnssssnnsntesseesessscnsssssensssineatsiasasiucsisieseeeecee Property Tax Record oc. DRA MES TE f “OM INT T.M. Auto Sales, Inc. - Page A Bhghlhis TRATIVE COMPLA exHipiT #__/ - PAGE Aor yp Allstate Appraisal Services, Inc. SUMMARY OF SALIENT FACTS DATE OF VALUATION: March 24, 2005 PROPERTY TYPE: Land as if Vacant OWNERSHIP: Antonio & Mercedes Olivera INTEREST APPRAISED: Fee Simple Interest PROPERTY ADDRESS: ° 142 West 21 St, Hialeah, FL 33010 LEGAL DESCRIPTION: Lots 27 & 28 BIk 126 Hialeah 17! Add. PB 126 APN MIAMI-DADE COUNTY: 04 — 3107 —- 013 - 1090 PURPOSE OF APPRAISAL: — Estimate “As-Is" Market Value LAND SIZE: 6,507 Square Feet as recorded on public tax records BUILDING AREA: 460 Square Feet of building area as per appraiser's measurements ZONING: 65- C1 Commercial Classified HIGHEST & BEST USE: Present Use AGE OF IMPROVEMENTS: =? Years / Built 1996 OE PA, . "» VALUE INDICATIONS» 00 oan Indicated Valué Via Sales Comparison Approach: : Le $293,000 Indicated Market Value Via the Gross Income Multiplier Method: 7 “N/A Indicated Value Via Income Capitalization Approach: . a N/A -Indicated Value of land: | ae ae “$293,000 Replacement Cost New Estimate: 7 var ; ‘ oe N/A Indicated Value Vid the Cost Approach: =, ony) Final Market Value Estimate; = $293,000 AD . ind AN pT Ad TM. Auto Sales, inc. Page 5 of $4 MUNISTRATIVE COMPLAINT EXHIBIT # on PAGE 5 of (4 Allstate Appraisal Services, Inc. CERTIFICATE OF APPRAISAL | certify that, to the best of my knowledge and belief: Lhe Statements of fact contained in this report are true and correct. 21he reported analyses, opinions, conclusions are limited. only by the reported assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved. . 4.0ur_ compensation Is not contingent upon the reporting of a predetermined value -or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. S.Thi s appraisal was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 6.0ur analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. : 7, We have made a personal inspection of the property that Is the subject of this report. 8.NoO one provided significant professional assistance fo the persons signing this report. 9.7 he reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 10, The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duty authorized representatives, 1LAs of the date of this report, we have completed the requirements of the continuing education program of the Appraisal Institute. |, Mike Gomez, hereby certify that in accordance with the request of Pier 21 Mortgage, | have made an inspection, investigation, and analyses of the property located and legally described: . 142 West 21 St ADMINISTRATIVE COMPLAINT T.M. Auto Sales, Inc: - Page 4 OfS2 aie # PAGE ___[p OF 3 Allstate Appraisal Services, Inc. Hialeah, FL 33010 In my. opinion, the Market Value "Subject to permits & survey*" of said property, as of September 19', 2003, the date of my personal inspection is: “Iwo Hundred Ninety Three Thousand dollars 00/100 , ($ 293,000.00) * fncluding these items normally considered in the Cost Approach to Value, but exclusive of any other items of furniture, furnishings, or equipment contained therein. The undersigned state that to the best of their knowledge and belief, the statements of fact and conclusion herein, subject to the “Limiting Conditions" set forth herein after, are correct. : IN WITNESS WHERE OF, Mike Gomez cause these present to be signed this 14th day of April 2005, Mike Gomez State Certified General Appraiser RZ - 2795 ADMINISTRATIVE GOMPLAINT. TM. Auto Sales, Inc.- Page 7 of 52 EXHIBIT 4, L se nas PAGE 2. OF Le 4] Allstate Appraisal Services, Inc. ASSUMPTIONS AND LIMITING CONDITIONS As agreed upon with the client prior to the preparation of this appraisal this is a limited appraisal because it invokes the departure provision of the Uniform Standards of Professional Appraisal Practices. As such, information pertinent to the valuation has not been considered and/or the full valuation process has not been applied. Depending on the type and degree of limitations, Ihe reliability of the value conclusions provided here in maybe be reduced. This is a Summary Appraisal Report which is intended to comply with the reporting requirements set forth under standard rule 2-2(b) of the Uniform Standards of Professional Appraisal Practices for a Summery Appraisal Report. As such, it might not include full discussions of the data, reasoning, and analysis that where used in the appraisal ‘process io develop the appraiser's opinion of value. Supporting ‘documentation concerning the data, reasoning and analysis is retained in the appraiser's file, contained in this report. The appraiser is not responsible for unauthorized use of this report. Reasonable ownership and competent property management are assumed unless otherwise stated in this report. tis assumed that all required licenses, certifications of occupancy, other legislative, or administrative authority from any local, state, or national government, or private entity, or organization have been or can be obtained or renewed for any use or which the value estimates contained in this report are based. : It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and there are no encroachmenis or trespass unless otherwise stated in this report. ' Any proposed improvements are assumed to be completed in a good workman like manor in accordance with the submitted plans and specifications. The disiibution, if any, of the total valuation in. this report between land and improvements applies only under the stated program of utilization. The separate allocations for fand and buildings must not be used in conjunction with any other appraisal and are invalid if so used. Possession of this repott, or a copy thereof, does not carry with it the tight of publication. It may not be used for any purpose by any person other than the party to whom it ts addressed without the written consent of the appraiser, and in any event, only with proper written qualifications and only in its entirety. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected} ADMINISTRATIVE COMPLAINT EXHIBIT #4 ( PAGE Fogg