STATE OF FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BOARD & Y 4 FLORIDA DEPARTMENT OF BUSINESS & <7 4 PROFESSIONAL REGULATION, f IP Og, 4, DIVISION OF REAL ESTATE, 1) q -| S49 Uo, ty, : WYP Go Petitioner, SL v. " CASE NO. 2005055747 ROMY STEINBERG, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Romy Steinberg (“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 tules promulgated thereunder. 2. Respondent is currently a Florida licensed real estate appraiser having been issued license 227 in accordance with Chapter 475 Part II of the Florida Statutes. 3. The last license the State issued to Respondent was as a licensed real estate appraiser at 1722 S. Orange Avenue, Sarasota, Florida 34230. 4. Onor about July 22, 2005, Respondent developed and communicated an appraisal report FDBPR v. Romy Steinberg Case No. 2005055747 . Administrative Complaint (Report) for property commonly known as 101 Gulfstream. Avenue, Unit 14E Dolphin Tower, Sarasota, Florida 34236-8922 (Subject Property). The client is ‘William McGill, 140 South Hook Road, Pennsville, New Jersey 08070. A copy of the report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. . 5. Respondent failed to disclose to the client that Respondent is the wife of the buyer of the subject property, Scott West. Respondent acknowledged in a letter to the Petitioner Respondent’s relationship to the buyer. A copy of Respondent’s letter is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. Respondent at all times material hereto did business as West Appraisal Company, that was owned by West and West Associates, Inc. Respondent was not a corporate officer in West and West Associates, Inc., but Scott West was both an officer and registered agent. 6. Respondent’s signature under her married name, “Romy West” and married initials, “RW,” appear on mortgage documents relating to two mortgages in the principal sums of $97,000.00 and $388,000.00 on the subject property, both executed on August 25, 2005. Respondent signed as the “borrower,” together with Scott West. Copies of the two mortgages and associated documents is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 7. The sales contract on the subject property contains an appraisal addendum, making the buyer’s purchase of the subject property contingent upon the buyer obtaining an appraisal showing a value of at least $479,000.00. Respondent appraised the subject property at $485,000.00. A copy of the sales contract is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. 8. Respondent failed to include documentation in Respondent’s work file to justify the 2 FDBPR v. Romy Steinberg Case No. 2005055747 » Administrative Complaint valuation using the Cost Approach. 9. Respondent relied on documentation provided by Scott West in preparing the Report. A copy of a facsimile from West Appraisal Company dated May 5, 2006 showing failure to maintain a copy of Marshall and Swift data in the work file that was relied upon in the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 5. a) _ d) c) qd) e) g) h) 10. Respondent made the following errors or omissions in the Report: Respondent failed to state the intended use or users of the appraisal in the Report; Respondent made a $20,000 adjustment to comparable sale 1, yet stated its condition was average; Respondent failed to keep and maintain any documentation in the work file to support the $20,000 adjustment made to comparable sale 1; Respondent failed to keep and maintain in the work file to support the $56,000 adjustment to comparable sale 1 for its sale date; Respondent failed to make adjustments for sale date for comparable sales 2, 3, and 4; Respondent failed to utilize other comparable sales that were located in the same building as the Subject Property, and were available at the time the Report was developed; Respondent failed to analyze or discuss the current agreement of sale and listing on the subject property; Respondent omitted the unit number on the Subject Property and the unit number of Comparable Sale 4 in the Sales Comparison Analysis Section of the Report; FDBPR v. Romy Steinberg Case No. 2005055747 . Administrative Complaint i) _ Respondent failed to check the box for tenant occupancy under the Neighborhood Characteristics Section of the Report, while stating under the Project Improvements Section that 10% of the units were rented; j) Respondent failed to utilize the Income Approach to valuation, despite Respondent stating that 10% of the units were rented and not owner occupied; k) Respondent failed to explain why she did not utilize the Income Approach to valuation; 1) Respondent failed to adjust for views on Comparable Sales 1, 2, and 4; m) Respondent adjusted unequally for full bay views between Comparable Sales 3 and 6, $62,000 and $69,990 respectively; n) Respondent failed to keep and maintain supporting documentation in the workfile for adjustments for views, total room numbers, and fewer bedrooms/bathrooms; and 0) Respondent failed to keep and maintain documentation in the workfile to support substantial upgrades made to subject property that distinguished the subject property from Comparable Sale 1, and failed to maintain a copy of an appraisal order, letter of ; engagement or invoice to the client. COUNT I Based upon the foregoing, Respondent is guilty of fraud or misrepresentation in any business transaction in violation of Section 475.624(2), Florida Statutes. COUNT II Based upon the foregoing, Respondent has violated the Conduct Section, Ethics Rule or other 4 FDBPR v. Romy Steinberg Case No. 2005055747 . Administrative Complaint provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT III Based upon the foregoing, Respondent has violated a standard for the development or communication ofa real estate appraisal, specifically Standard 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 IV Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard 1-2(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 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. COUNT VI Based upon the foregoing, Respondent has violated a standard for the development ot communication of a real estate appraisal, specifically Standard 2-1 (a), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), 5 FDBPR v. Romy Steinberg Case No. 2005055747 , Administrative Complaint 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 2-2(b)(i), (ii), and (viii), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT VI Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standard 2-3, 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 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. COUNT XI Based upon the foregoing, Respondent is guilty of failing to retain, for at least five years, FDBPR v. Romy Steinberg Case No. 2005055747 + Administrative Complaint 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. 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, FDBPR v. Romy Steinberg Case No. 2005055747 + Admihistrative Complaint 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 "| h day of November 2006. teagional Regtiahas: : a Pr Florida Department of Busi vepartment Ci of Real estate ; : _ Professional Regulation ” Division © : Michael E. Murphy, Director en Division of Real Estate Ae ATTORNEY FOR PETITIONER D. C. Lindamood, Senior Attorney Fla. Bar No. 273694 Division of Real Estate Legal Section 400 W. Robinson Street, N801 Orlando, Florida 32801-1757 (407).481-5632 (407) 317-7260 - FAX PCP: CW/MC 11/06 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. FDBPR v. Romy Steinberg : Case No. 2005055747 . Administrative Complaint 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. | APPRAISAL OF REAL PROPERTY LOCATED AT: 101 S GULFSTREAM AVENUE UNIT 44€ DOLPHIN TOWER SARASOTA, FL 34236-8922 FOR: WILLIAM MCGILL 440 SOUTH HOOK ROAD PENNSVILLE, NJ 08070 BY: ROMY STEINBERG REPORT -— EXHIBIT# Oe Form GAi — pus in Zi sofiware By @ i mode. nic. — 1-800-ALAMODE PAGE 37) , : INDIVIDUAL CONDOMINIUM UNIT APPRAISAL REPORT Property Address 101 S GULFSTREAM AVENUE. City SARASOTA State FL Legal Description UNIT 14E DOLPHIN TOWER County SARASOTA, Unit No. 14E Assessor's Parcel No. 2027-05-2098 Tax Year 04/05 _ RE. Taxes $ 3,280.18 Special Assessments § 0.00 Project Name/Phase No. DOLPHIN TOWER Map Reference 19-36-18 Census Tract_0001.01 Borrower WEST Current Owner_ KRAUS Occupant _F] Owner Tenant__[) Vacant Property rights appraised x Fee Simple [ | Leasehold ] Monthly Home Owners’ Association Unit Charge $ 385.00 Sales Price $ 485,000 Date of Sale PENDING Description and $ amount of loan charges/concessions to be paid by seller_N/A. Lender/Client_ WILLIAM MCGILL. Address 140 SOUTH HOOK ROAD, PENNSVILLE, NJ 08070 Address P.O. BOX 48237, SARASOTA, FL 34230, FileNo. WEST-101 Zip Code 34236-8922 Urban Suburban Rural Predominant Single fami Built up Dx] Over 75% 25-75% Under 25% SO enc, Fg Growth rate Rapid XX Stable Slow DX owner 500 Low _NEW 1} 5X) Owner Property values DX} increasing Stable Declining Tenant 2,000+ High 400 Tenant Demand/supply Shortage [2X] in balance Over supply | OX} Vacant (0-5%) Ed Predominant EX] vacant (0-5%) Marketing time Under 3 mos. DX] 3-6 mos. Over 6 mos. {f”] vacant (aver 5%) | 1,000 50 Vacant (over 5%) Present land use %: One Family _40_, 2-4Family_10_, Apartments , Condominium 45 , Commercial_5_ , Industrial » Vacant , Other Land use change: MI Notiikely (J Likely In process to Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: ©THE SUBJECT’S NEIGHBORHOOD LIES NORTH OF ROUTE 41, SOUTH OF 10TH STREET, EAST OF SARASOTA BAY, AND WEST OF ROUTE 301. Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.): NEIGHBORHOOD IMPROVEMENTS ARE ADEQUATELY MAINTAINED. TYPICAL DWELLINGS ARE OF SIMILAR STYLES AND AGES. CONVENIENCE TO MOST MAJOR AMENITIES SUCH AS PUBLIC TRANSPORTATION, SCHOOLS, SHOPPING, HOUSES OF WORSHIP, ETC. NEIGHBORHOOD IS STABLE; LOCAL DWELLINGS ARE CONSIDERED MARKETABLE AND APPEALING TO PROSPECTIVE PURCHASERS. Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of property values, demand/supply, and marketing time ~~ such as data on competitive properties for sale in the project and neighborhood, description of the prevalence of sales and financing concessions, etc,)}: SUBJECTS COMPETITIVE MARKET AREA IS CURRENTLY AN ACTIVE MARKET. THIS APPEARS TO BE A REFLECTION OF AN IMPROVING LOCAL ECONOMY, LOWER MORTGAGE RATES, AND INCREASED DEMAND FOR CONDOMINIUM. AS THE ECONOMY CONTINUES TO RECOVER, SELLER CONCESSIONS ARE DECREASING, CONVENTIONAL FORMS OF FINANCING ARE READILY AVAILABLE TO BUYERS. Specific zoning classification and description +_C-CBD;CONDOMINIUM. Topography Zoning compliance [XJ Legal [_] Legal nonconforming (Grandfathered use) Wegal “[_] No zoning | Size Highest and best use as improved _[] Present use 1] Other use (explain) Density Utilities Public Other Off-sitelmprovements Type Public Private | View Electricity &] _200 ame Street MACADAM. &X Drainagé Gas x Curb/gutter CONCRETE Apparent easements NONE NOTED Water i] Sidewalk CONCRETE i FEMA Special Flood Hazard Area [XI Yes No Sanitary sewer