STATE OF FLORIDA &9 DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION 4Pp FLORIDA REAL ESTATE APPRAISAL BOARD FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, 0 1: 20 aPL Petitioner, v. CASE NO. 2008011552 CHAD TURNER, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Chad Turner (“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 5325 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 821 SE 2° HAFREAB\Turner.552.doc 1 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint Court, Ft. Lauderdale, Florida 33301. 4. On or about March 6, 2006, Chad Turner (Respondent) developed and communicated an appraisal report (Report) for property commonly known as 329 SW 30th Avenue, Cape Coral, Florida 33991 (Subject Property), and estimated its value as $358,000.00 A copy of the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. At the time Report 1 was developed and communicated, Respondent was a State Certified Residential real estate appraiser. 6. Respondent made the following errors and omissions on the Report: A) Contradictory statements in the Neighborhood section of the Report regarding marketing. In the One Unit Housing Trends, Respondents states marketing time is less than 3 months; in Marketing Conditions, Respondent states ”“[O]nce listed, most homes sell within 3 to 6 months;” B) Failure to make an adjustment or provide an explanation for no adjustment on comparable sale 1 for it’s “average” Condition; C) Adjustment for bathroom count and square footage, without explanation of its necessity or market support of its accuracy, for comparable sale 3; HAFREAB\Turner.552.doc 2 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint D) Inconsistent age adjustments, without explanation, for all comparable sales in the Sales Comparison section of the Report; and E) Failure to disclose and display the appropriate designation in the Report. 7. There is no documentation in the work file to support the Gross Living Area adjustments made to all comparable sales in the Sales Comparison section of the Report. 8. There is no documentation in the work file to support the $104,000 Opinion of Site Value adjustment made in the Cost Approach section of the Report. 9. There is no Marshall and Swift information in the work file, when Respondent lists this as a data source, to support the adjustments and data used in the Cost Approach of the Report. 10. The work file lacks any MLS documents for the subject property and all comparable sales, when Respondent lists this as a data source in the Sales Comparison section of the Report. 11. There is no documentation in the work file to support the following information in the Sales Comparison section for comparable sale 1: Sale Price; Sales or Financing; Concessions; Date of Sale; Site Size; Actual Age; Room Count; Gross Living Area; Functional Utility, Heating/Cooling; Energy Efficient Items; Garage/Carport; Porch/Patio/Deck; and Land Features. H:\FREAB\Turmer.552.doc 3 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint 12. There is no documentation in the work file to support the $15,000 View adjustment to comparable sale 1 in the Sales Comparison section of the Report. 13. There is no documentation in the work file to support the $7,500 Age adjustment to comparable sale 1 in the Sales Comparison section of the Report. 14. There is no documentation in the work file to support the $5,000 Dock adjustment to comparable sale 1 in the Sales Comparison section of the Report. 15. There is no documentation in the work file to support the $7,500 Age adjustment to comparable sale 2 in the Sales Comparison section of the Report. 16. There is no documentation in the work file to support the $7,500 Pool adjustment to comparable sale 2 in the Sales Comparison section of the Report. 17. There is no documentation in the work file to support the $5,000 Age adjustment to comparable sale 3 in the Sales Comparison section of the Report. 18. There is no documentation in the work file to support the $2,000 “half bath” adjustment to comparable sale 3 in the Sales Comparison section of the Report. A copy of the Respondent’s work file for the Report is attached hereto and incorporated herein as H:\FREAB\Tumer.552.doc 4 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint Administrative Complaint Exhibit 2. COUNT ONE 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 TWO Based upon the foregoing, Respondent is guilty of failing to disclose and display the appropriate designation in writing in all appraisal reports in violation of Rule 61J1-7.001(1) and (2) (c), Florida Administrative Code and Section 475.622, Florida Statutes and, therefore, in violation of Section 475.624(4), Florida Statutes. COUNT THREE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically the Record Keeping Section of the Ethics Rule, or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT FOUR Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, HAFREAB\Tumer.552.doc 5 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint specifically Standards Rule 1-1(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 FIVE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-4(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 SIX Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards 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 SEVEN Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 2-2(b) (viii), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. HAFREAB\Turner.552.doc 6 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint COUNT EIGHT 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 NINE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-4(h) (i) and (ii), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), 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, er 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 H:\FREAB\Turner.552.doc 7 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint 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 ofa 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 Section 455.227, Fla. Statutes and Florida Administrative Code Rule 61J31-8.002. HAFREAB\Turner.552.doe 8 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint SIGNED this OC; day of , 2008. and Professional Regulation Thomas O’Bryant, Jr., Director, Division of Real Estate ATTORNEY FOR PETITIONER . N 2 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/pa 9/08 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 H:\FREAB\Tumer.552.doc 9 FDBPR v. Chad Turner Case No. 2008011552 Administrative Complaint 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. H:\FREAB\Tumer.552.doc 10 ile No. 63053] Page #3 SUMMARY OF SALIENT FEATURES Subject Address 329 SW 30th Avenue Legal Description CAPE CORAL UNIT 54 BLK 3933 PB 19 PG 85 LOTS 27 + 28 City Cape Coral County Lee State FL Zip Code Census Tract Map Reference See addenda Sale Price $ 310,600 Date of Sale 12/20/2005 Borrower/Client Gary Raymond Bodie Lender Market Street Mortgage Size (Square Feet) 1,797 Price per Square Foot $ 172.84 _ Location Cape Coral Age Condition Total Rooms Bedrooms Baths Appraiser Chad Turner Date of Appraised Value March 6, 2006 Final Estimate of Value $ 358,000 ADMINISTRATIVE COMPLAINT exHisit +f PAGE [| oF Form SSD — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE YF the Appraisal tir (440) 1 ¢-Vouu he WY, DOV] Pale 4 A Bodie Uniform Residential Appraisal Report File # 63053 The purpose of this summary appraisal report is to provide the lender/cltent with an accurate, and adequately supported, opinion of the market value of the subject property. Property Adcress_ 329 SW 30th Avenue City Cape Coral a State FL Zip Code_ 33991 Borrower_ Gary Raymond Bodie Owner of Public Record Milagros Cornejo County Lee Legal Description CAPE CORAL UNIT 54 BLK 3933 PB 19 PG 85 LOTS 27 + 28 Assessor's Parcel #__17-44-23-C1-03933.0270 Tax Year_2005 RE Taxes$ 948.31 Neighborhood Name__ City of Cape Coral Map Reference See addenda Census Tract 0101.03 Occupant jj Owner (= Tenant_ x) Vacant Special Assessments $67.50 (]Pud HOAS N/A i Jperyear | | per month Ey Property Rights Appraised 3X! Fee Simple |_| Leasehold |_| Other (describe) Assignment Type _ [J Purchase Transaction [_| Refinance Transaction [_] Other (describe) wa. Lender/Client_ Market Street Mortgage Address 14421 Metropolis Ave, Suite 102, Fort Myers, FL, 33912 {s the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? DX Yes =] No Report data source(s) used, offering price(s), and date(s), Public Record, MLS, Purchase Agreement. | Xi did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. The purchase agreement appears to be a valid arms length transaction. There is no evidence of any fraudulent exchanges made within this sates transaction. . Contract Price $_ 310,600 Date of Contract 12/20/2005 __!s the property seller the owner of public record? _[X}Yes_[_]No Data Source(s) aucitovPurchase Agreement z {s there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? (1 Yes No If Yes, report the total dollar amount and describe the items to be paid. See attached addenda. Note: Race and the racial composition of the neighborhood are not appraisal factors. ae teristics Lees using: OnesUnit Hous i zi Location [_] Urban _O<) Suburban Rurat Property Values DX? Increasing _{_} Stable Declining PRICE AGE | One-Unit 25 % Pe Built-Up [< Over 75% [ ) 25-75% Under 25% | Demand/Supply Qj Shortage (J In Balance Over Supply | $ (000) (yrs) | 2-4 Unit 5% Fe Growth ><) Rapid Stable Slow Marketing Time [X} Under 3 mths [_)3-6mths [_] Qver6 mths | 300 Low New | Multi-Family 5% Fa Neighborhood Boundaries The subject neighborhood is bounded by Embers Pkwy to the north, Chiquita 600 High 30 {Commercial 5% F4 Bivd. to the east, Pine Island Road to the south, and Burnt Store Road to the west. 325 Pred. 10 {Other 60 % Neighborhood Description See Attached Addenda Market Conditions (including support for the above conclusions) General market conditions within the subject are average. Once listed, most homes sell within three to six months. Demand for the neighborhood is steady due to locational convenience. Conventional and FHA/VA financing is the norm. Seller paid concessions are generally negotiable items. Dimensions 80 x 125 Area_.22 Acres Shape_Rectangular View Residential Specific Zoning Classification R1B. Zoning Description Residential Single Family Zoning Compliance {Xj Legal_[_} Legal Nonconforming (Grandfathered Use) [_] No Zoning [_] legal (describe) Is the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? Edi Yes [J No If No, describe Utilities Public Other {describe) Public Other (describe) Off-site Improvements - Type Public Private Electricity Od Water LJ] wen Street_Concrete Kl faa] Gas None Sanitary Sewer (] Dd) Septic Alley None ial ] FEMA Special Flood Hazard Area [X] Yes_[_] No. FEMA Flood Zone AG FEMA Map # 1250950020C. FEMA Map Date_ 9/18/1985 Are the utilities and off-site improvements typical for the market area? Bd Yes £ } No_ if No, describe ‘Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? (_tYes EX}. No_ tf Yes, describe The subject's site is a typical conforming site for the area. No adverse conditions were noted. No sutvey was conducted. The subject's well and septic are typical for the subject area. Units D<] One [7] One with Accessory Unit [<] Centrat Air Conditioning PatioDeck Lanai [X] Porch Entry Camort_—_# of Cars Finished [J Heated individual Other Pool Other EX] Att (Det. (] Built-in liances [X] Refrigerator [Xx] Range/Oven [X! Dishwasher | | Disposal Microwave [_] Washer/Dryer _[X) Other (describe) Sprinkler system Finished area above grade contains: 7__Rooms 3. Bedrooms 2_Bath(s) 1,797 Square Feet of Gross Living Area Above Grade Additional features (special energy efficient items, etc.). Insulated windows. Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). No functional or external obsolescence is noted. The subject is newly constructed home. This report assumes that the lot is buildable and will be approved by locat officials. Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes [J No_ if Yes, describe No functional or external obsolescence is noted, The subject is newly constructed home. This report assumes that the lot is buildable and wit! be approved by local officials. Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.}? Bel yes [J No_ Hf No, describe No adverse environmenta! conditions were observed by your appraiser or brought to your appraiser's attention. Please refer to the Statement of Limiting Conditions. Freddie Mac Form 70 March 2005 Page 1 of 6 Fannie Mae Form 1004 March 2005 ADMINISTRATIVE COMPLAINT. Form 1004 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE _ EXMHIBIT # . se 2 oF File No. 6305. Page #5. Uniform Residential Appraisal Report Flew 69088 There are 20__compatable properties currently offered for sale in the subject neighborhood ranging in price from $ 275,000 to$ 575,000 There ate 20__comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $_275,000 to$_ 575,000 FEATURE. SUBJECT COMPARABLE SALE # 1 j COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address 329 SW 30th Avenue 3406 SW 2nd Street 3313 SW 3rd Lane 1546 NW 28th Avenue Cape Coral, FL 33: Cape Coral, FL 33991 Cape Cora, FL 33993 Cape Coral, FL 33993 Proximity to Subject E .5+/- miles NW 0.34/- miles W 1+/- miles N Sale Price $ 310,601 Sale Price/Gross Liv. Area $172.84 sq.tt. Data Source(s) 361,800) 339,500 196.28 sq.ft. 171.39 sq.ft. : 164.65 sq.ft}: Exterior Inspection Exterior Inspection Exterior Inspection of Comparables E Gross Adj. 7.5 %|$ 375,600|Gross Adj. 5.0 %/$ 358,660/Gross Adj 2.8 %{$ 339,850 LBS did did not research the sale or transfer history of the subject property and comparable sales. If not, explain Verification Source(s} _ MLS / County Property Appraise_|MLS / County Property Appraiser |MLS / County Property Appraiser VALUE ADJUSTMENTS _ DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment, Sales or Financing Conventional Conventional Conventional Concessions Unavailable Unavailable Unavailable Date of Sale/Time [: 42/28/2005, §/25/2005 7/19/2005 Location Cape Corat Cape Coral Cape Coral Cape Coral Leasehold/Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Site .22 Acres :22 Acres _ .22 Acres .22 Acres View Residential Residential/Canal -15,000/ Residential Residential Design (Styie) Ranch Colonial Ranch Ranch Quality of Construction Stucco Stucco Stucco Stucco Actuat Age New 14 +7,500/6 +7,500|5 +5,000 Condition New > Average Good Good Above Grade Total [Bdrms.| Baths | Total |Bdrms.| Baths Total |Bdrms.| Baths Total |Bdrms.; Baths Room Count 7 3 2 7 3 2 7 3 2 7 312.1 -2,000 Gross Living Area 1,797 sq.ft. 1,987 _squft. -1,900| 2.111 sqft. -3,140 2,062_ sq.ft -2,650 Basement & Finished Slab Slab Slab Stab Rooms Below Grade N/A N/A N/A N/A x Functional Utility _ Average Average Average Average Fe} Heating/Cooling FA/CAG FAICAC FA/CAC FA/CAC be} Energy Efficient ttems Ins. Windows __|Ins. Windows ins. Windows ins. Windows. fq Garage/Carport 2-Car Attached _|2-Car Attached 2-Car Attached : 2-Car Attached $ Porch/Patio/Deck Stoop/Patio Stoop/Patio Stoop/Patio Stoop/Patio 5-4 Pool(s), ect. None None In-Ground Poo! -7,500! None = Land Features None Dock -5,000; None None & fl Not Adjustment otal Lt &- |s i440, (i+ &- |s 3140] K+ Cl- [s 350 g Adjusted Sale Price SNetAd. = 3.7% NetAd. 09 % NetAd. = 0.4. % Fi My research did] did not reveal any prior sales ot transfers of the subject property for the three years prior to the effective date of this appraisal. Data Source(s) Public Record research [_] did _[<) did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale. Data Source(s) Public Record Report the results of the research and analysis of the prior sale of transfer history of the subject property and comparable sales (report additional prior sales on page 3). (TEM. SUBJECT | COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 Date of Prior Sale/Transfer See subject No arms length transfers No arms length transfers No arms length transfers Price of Prior Saie/Transter property history within 3 years within 3 years within 3 years Data Source(s) addenda. Public Record [Public Record Public Record Effective Date of Data Source(s) 3/6/2006 2/11/2006 - 3/6/2006 3/6/2006 Analysis of prior sale or transfer history of the subject property and comparable sales Other than the sales listed, there have been no prior transfers. See subject property history addenda. Summary of Sales Comparison Approach The Sales Comparison Analysis indicated an adjusted value range of $339,850 to $375,600. All sales are taken the subject's neighborhood, they are considered reliable indicators of value in you appraiser's opinion. Due to lack of more recent similar recorded Sales_in the subject's immediate area within a 6 month transfer period, your appraiser has expanded the search parameters beyond the desired 6 months for those sales, which most closely share similar livability, marketabitity, size and overall utility, So as to compare the closest buyer alternatives. After an extensive search of the subject's and surrounding markets areas, the comparables chosen are considered to be appropriate indicators of value. Indicated Value by Sales Comparison Approach$ _358,000 Indicated Value by: Sales Comparison Approach $ 358,000 See attached addenda. Cost Approach (if developed)$ 310,523. Income Approach (ifdeveloped)$ N/A ILIATION This appraisal is made “as is”,