De-SOIOPE STATE OF FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BOARD FLORIDA DEPARTMENT OF BUSINESS & dy, (4 PROFESSIONAL REGULATION, ? &> & DIVISION OF REALESTATE, Ap ‘ Onlin, A ‘S Petitioner, sis Oe “4, v. a CASE NO. ww ee BARBARA EXPOSITO, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Barbara Exposito (“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 1806 in accordance with Chapter 475 Part I of the Florida Statutes. 3. The last license the State issued to Respondent was as a state certified residential real estate appraiser at 14230 SW 62" Street, Miami, Florida 33183. 4. On or about February 7, 2006, Barbara Exposito (Respondent) and Francisco J. Bendana FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint developed and communicated an appraisal report (Report) for property known as 8635 SW 48 Street, Miami FL 33155 (Subject Property), and estimated its value at $525,000.00. A copy of the report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. A copy of the work file is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 5. At the time the Report was developed and communicated, Respondent was a State Certified Residential Real Estate Appraiser who supervised Registered Trainee Appraiser Francisco J. Bendara. Respondent failed to ensure that her trainee, Francisco J. Bendara, had the same business address as Respondent. A copy of Petitioner’s computer licensure record printout showing Respondent’s licensure supervision of Francisco J. Bendara and his address is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 6. Robert Thomas Suleski ordered the appraisal from Respondent and Francisco J. Bendara on or about February 2, 2007, in two separate emails. Robert Thomas Suleski was not the owner of the Subject Property; he was the borrower in the transaction. In his first email, Robert Thomas Suleski requested a “pencil sketch,” provided photographs, and asked for a value of $600,000.00. In the second email, Robert Thomas Suleski ordered an actual appraisal, and requested that the value come in at $525,000.00. The estimated market value of the Subject Property listed in the Report is $525,000.00. Copies of Robert Thomas Suleski’s two emails are attached hereto and incorporated herein as Administrative Complaint Composite Exhibit 4. 7. Respondent failed to inquire whether or not the Subject Property was under contract at the time the Report was developed and communicated, and whether it had been offered for sale within the previous 12 months. Respondent stated on the first page of the Report that the Subject Property FDBPR v. Barbara Exposito , Case No. 2007008180 Administrative Complaint had not been offered for sale within the previous 12 months, even though she had no knowledge of that. 8. Respondent misstated that the Report was generated for refinancing purposes and not for resale; however, there was a sale agreement between Robert Thomas Suleski and the Subject Property owner at the time the Report was developed and communicated. A copy of the correspondence from Robert Thomas Suleski’s attorney regarding same is attached hereto and incorporated herein as Administrative Complaint Exhibit 5. 9. Respondent failed to list the identity of the lender in the Report; in addition, on the FIRREA/USPAP Addendum to the Report, Respondent misstated that Robert Thomas Suleski was the lender when he was actually the borrower. 10. Respondent utilized the Summary Report form, but stated in the FIRREA/USPAP Addendum to the Report that it was a Limited Report. 11. On page 2 of the Report, Respondent misstated that there was a quit claim deed on the Subject Property, when there was none. 12. Respondent failed to include any documentation in the work file to support the values utilized and reached in the Cost Approach section of the Report. 13. Respondent misstated the information source she relied on in developing the Report; she stated that she relied on “MLX” instead of “MLS.” Respondent also failed to have MLS documentation in the work file for Comparable Sales 1 and 3. 14. In the Sales Comparison Analysis section of the Report, Respondent made the following errors and omissions: FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint a) Respondent made a $10,000 negative adjustment to Comparable Sale 1 for its larger site, but failed to have any documentation in the work file to support the negative adjustment, b.) Respondent made a $10,752 negative adjustment to Comparable Sale 2 for its larger site, but failed to include any documentation in the work file to support the negative adjustment; c.) Respondent made a $4,000 negative adjustment to Comparable Sale 2 for its one additional bedroom and its one additional bathroom, but failed to include any documentation in the work file to support the negative adjustment; d.) Respondent made a $4,000 negative adjustment to Comparable Sale 3 for its one additional bathroom, but failed to have any documentation in the work file to support the negative adjustment; e.) Although Comparable Sale 2 had one more bedroom and one more bathroom than the Subject Property, and Comparable Sale 3 only had one more bathroom than the Subject Property, Respondent made the same dollar adjustment to both comparable sales in the Report; f£.) Respondent made adjustments to Comparable Sales 2 and 3 for differences in Gross Living Area, yct failed to include any documentation in the work file to support the adjustments; g.) Respondent misstated the square footage of all the comparable sales; Respondent’s listed square footage of Comparable Sales 1, 2 and 3 does not match the MLS and public records documentation for the comparable sales in Respondent’s work file; h.) Respondent failed to make an adjustment for age to Comparable Sale 3, when it is 20 years newer than the Subject Property; 15. Respondent has previously been disciplined by the Florida Real Estate Appraisal Board FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint in Case No. 200084543. A copy of the Final Order is attached hereto and incorporated herein as Administrative Complaint Exhibit 6. COUNT I Based upon the foregoing, Respondent is guilty of failing to ensure the trainee has the same business address as the supervisory appraiser in violation of Section 475.6221(1), Florida Statutes and, therefore, in violation of Section 475.624(4), Florida Statutes. COUNT IL Based upon the foregoing, Respondent is guilty of failing to provide direct supervision to a registered trainee appraiser in violation of Florida Admin. Code Rule 61J1-4.010 and, therefore, in violation of Sections 475.6222 and 475.624(4), Florida Statutes. COUNT III Based upon the foregoing, Respondent is guilty of misrepresentation in any business transaction in violation of Section 475.624(2), 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. COUNT V Based upon the foregoing, Respondent is guilty of accepting an appraisal assignment when the employment itself is contingent upon the appraiser reporting a predetermined result, analysis, or opinion in violation of Section 475.624(17), Florida Statutes. FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint COUNT VI Based upon the foregoing, Respondent is guilty of failing to retain, for at least five years, original or true copies of any contracts engaging the appraiser’s services, appraisal reports, and supporting data 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. COUNT VII Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically 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 VII Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-2(e)(i), 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 has violated a standard for the development or communication ofa real estate appraisal, specifically Rule 1-4(a), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint Statutes. COUNT X Based upon the foregoing, Respondent has violated a standard for the development or communication ofa real estate appraisal, specifically Rule 1-5(a), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT XI Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Rule 2-1(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 XII Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Rule 2-2(b)(ii), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT XII 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 she is incompetent, negligent, dishonest, or untruthful to an extent that those with whom she may sustain a confidential relationship may not safety do so in FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint violation of Section 475.624(10), 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, FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint ‘ 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 Section 455.227, Fla. Statutes and Florida Administrative Code Rule 61J1-8.002. SIGNED this ras day of Florida Department of Business and Professional Regulation Thomas O’Bryant, Jr. Director, Division of Real Estate ATTORNEY FOR PETITIONER . A ZZ Robert Minarcin, Senior Attorney Fla. Bar No. 163147 Division of Real Estate Legal Section 400 W. Robinson Street, N801 Orlando, Florida 32801-1757 (407) 481-5632 (407) 317-7260 - FAX PCP: CW/CK 8/07 FDBPR v. Barbara Exposito Case No. 2007008180 Administrative Complaint 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 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. 10 FROM: Barbara Exposito Crossroad Appraisals, Inc. 14232 SW 62ND STREET MIAMI, FL 33183 Telephone Number: 305-386-1960 Fax Number: 305-386-1964 TO: Lender Case #: ROBERT THOMAS SULESKI Client Fle #: 5767 NW 151ST STREET MIAMI LAKES, FL 33014 Main File # on form: ag7-172 Other File# on form: ~=SUMMARY REPORT Telephone Number: (305) 374-7330 Fax Number: (305) 704-8870 Federal Tax ID: 86-1156961 [_Atternate Number: E-Malt: yoberttsuleski@hotmait.com Employer ID: OBERT THOMAS SULESKI OBERT THOMAS SULESKI Property Address: 8635 SW 48 STREET City: MIAMI County: MIAML-DADE, State: FL Legal Description: 22 54 40 JEWEL ESTATES PB 76-90 LOT 3 BLOCK 1 FULL APPRAISAL RUSH FEE ‘SUBTOTAL Check #: 1098. Description: 07-009 Check #: Description: Form NIVS —“WinTOTAL* appraisal software by ala mode, inc. ~ 1-800-ALAMODE So Crossroad Appraisals, Inc. (305) 386-1960 ADMINISTRATIVE COMPLAINT. EXHIBIT #_ | PAGE _ ( G APPRAISAL OF REAL PROPERTY LOCATED AT: 8635 SW 48 STREET 22 54 40 JEWEL ESTATES PB 76-90 LOT 3 BLOCK 1 MIAMI, FL 33155 FOR: ROBERT THOMAS SULESKI 5767 NW 151ST STREET MIAMI LAKES, FL 33014 AS OF: FEB 5, 2007 BY: Francisco J. Bendana/St.Reg.Trainee.REA CROSSROAD APPRAISALS INC. 14230 SW 62 STREET MIAMI, FL 33183 Form GA1 — “WinTOTAL* appraisal scftware by ala mode, ine. — 1-800-ALAMODE Ka] Uniform Residential Appraisal Report met nore The 1se_of this summar raisal report fs to provide the lender/client_with an accurate, and_adec supported, opinion of the market value ot the subj Property Address 8635 SW 48 STREET City MiAMI State FL ZipCode 33155 Borowet_ ROBERT THOMAS SULESKI “___ Owner of Public Record MAGALY G. ESPINOSA County MIAMI-DADE. Legal Description 22 54 40 JEWEL ESTATES PB 76-90 LOT 3 BLOCK 4 Assessor's Parcel # 30-4022-020-0030 Tax Year_ 2006 RE Tas $ 7,464.40 Neighborhood Name_ MIAMI Map Relerence §4-40-22 Census Tract 77.020 Occupant < Owner [_] Tenant [J Vacant Special Assessments § NVA (Ci Pu HOAs E11 per year [1 per month E:] Property Rights Appraised Od) fee Simple [~] Leasehold [] Other (describe) Assignment Type _[_] Purchase Transaction {J Retinance Transaction] Other (describe) ESTIMATE MARKET VALUE Lender/Client ROBERT THOMAS SULESKI Address fs the subject property currently offered for sale or has it been offered for safe in the twelve months prior to the effective date of this appraisal? C1 Yes [XI No Report data source(s) used, offering price(s), and date(s). _ FARES/OWNER/MLX. 1 LJ dd Gd dis not analyze the contract tor sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. N/A THIS IS A REFINANCE TRANSACTION Contract Price $ NWA Date of Contiact_ N/A 1s the property seller the owner of public record? O<1Yes [_|No_Oata Source(s) FARES/PUBLIC RCD. {s there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, elc.) to be paid by any party on behalf of the borrower? Cl ves 0) No Fc} Yes, report the total dollar amount and describe the items to be paid. : Note: Rac andthe race eomposiion o he neighborhood are not appraisal factors. ‘One*Unit Housing Tre = 5 Land U 5] Location [] Uiban 3g Suburban [-] Ral | Property Vaues [_] Increasing bs Stable - [J Decfining | PRICE AGE | One-Unit 90% PA Suil-ip [Over 75% [_] 25-75% — [_] Under 25% [DemandSupply || Shortage Dd] inBalance {"] Over Supply | $ (000) (yrs) _| 2-4 Unit % 4 Growin [| Rapi¢ 5G Stable [_] Slow Marketing Time_[_] Under 3 mths. fe 36mths [] Over 6mths| 355 Low 20 _| Mull-Famnily % Fe Neighborhood Boundaries SW 82 AVENUE TO THE EAST, SW 40 STREET TO THE NORTH, SW 48 750 High 55 _| Commercial 10 %| fq STREET TO THE SOUTH, AND SW 87 AVENUE TO THE WEST. 560 Pred. 45 _| Other % Neighborhood Description NO ADVERSE FACTORS AFFECTING THE SUBJECT'S MARKETABILITY WERE NOTED AT TIME OF INSPECTION. THE SUBJECT PROPERTY CONFORMS WELL TO THE SURROUNDING NEIGHBORHOOD. THE SUBJECT HAS ACCESS TO ALL MARKET AMENITIES, INCLUSIVE OF SCHOOLS, SHOPPING FACILITIES, RECREATION AND EMPLOYMENT. Market Conditions (inchiding support for the above conclusions) __ MARKET CONDITION APPEAR STABLE AND IN EQUILIBRIUM. ALTHOUGH THERE IS A. |VARIETY OF FINANCING AVAILABLE TO PURCHASER WITHIN THE MARKET CONVENTIONAL FINANCING IS PREDOMINANT. Dimensions 83,000 X 84 ‘Aea_7,812 SaFt. Shape_RECTANGULAR View RESIDENTIAL Specific Zoning Classification RU-1 Zoning Description SINGLE FAMILY Zoning Compliance (I Legal _[_] Legal Nonconforming (Grandtathered Use) [_] No-Zoning [_] Segal (describe) Is the highest and best use of subject property as improved {or as proposed per plans and specications) the present use? Dd Yes [_] No_ HtNo, describe Uillties Public Other (describe) Public Other (describe) Off-site improvements - Type Public Private fewety 8 OOrRP.L Water wo Steet PAVED ASPHALT __ Ki oO. (J J None NoTeD Sanitary Sewer [XJ] Alley NONE NOTED. angel Flood Hazard Area [] Yes_D<}No FEMA Flood ZoneX FEMA Map # 12025C0170J FEMA Map Date 3/2/1994 ‘Ave the utilities and off-site improvernents typical for the market area? [x Yes_[_] No_tt No, describe . Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? [Yes [x] No_If Yes, describe General Description "= Watton. ©... | Exterior Description: : /eondition | interior. Unis [X] One [_] One with Accessory Unit 4 Gonerete Slab Grawi Space Foundation Was CONCRETE/JAVG _ [floors # al Stovies ‘ONE Full Basement (J Partial Basement _|Exterior Walls CBS/AVE Walls DRYWALUAVG. Type et Det_ [7] Att [] $-Det /End Unit [Basement Area sq.ft. Roof Surtace BARREL TILE/AVG |ifimvfnish C. TLEWD/AVG Existin josed |} Under Const. {Basement Finish % |Gutters & Downspouts ADEQUATE. Bath Roor__C. TILEVAVG Design (Style) 41 STORY [_] Outside Enty/exit £_] Sump Pump __ [Window Type SLIDING/S.HUNG/ {Bath Wainscot C-TILE/AVG. ‘Year Built 1963. Evidence of [_} infestation Storm Sastyinsulated_ STORM SHUTTERS |Car Storage [| None Effective 3) 20 | Dampness [_] Settlement Screens. SCREENS/FULLIAV Driveway # of Cars. 2 ‘tic __Be None eating Ry FWA [| HWB6_[["] Radiant|Amenities T]Woodstove(s) # [Driveway Suriace ASPHALT. Drop Stair (] Stairs {Other Fuel ELECTRC, Fireplace(s) # OX] Fence IRON/AVGIC| Garage __# of Cats t_] Floor [| Scuttle Cooling _[X} Central Air Conditioning Foto coVvRi[} Porch Carport__# of Cars Finished Heated Ingividuat IL} Other Other At) Det) Balin ances Dg Refrigerator