STATE OF FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION .» os FLORIDA REAL ESTATE APPRAISAL BOARD ‘Y wo FLORIDA DEPARTMENT OF.BUSINESS & PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, O+- l6{L2 PL Petitioner, v. CASE NO. 2008053109 RAUL BASALO, Respondent. / ADMINISTRATIVE COMPLAINT “The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Raul Basalo(“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 6412 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 13454 SW 289 H:\FREAB\basalo.109.doc 1 FDBPR v. Raul Basalo Case No. 2008053109 Administrative Complaint . Terrace, Homestead, Florida 33027. 4. On or about July 3, 2007, Respondent developed and communicated an appraisal report (Report) on a property commonly known as 1200 Brickell Bay Drive, #2024, Miami, Florida 33131 (Subject Property), valuing the Subject Property at $836,000. A copy of the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. The complainant, an employee of JP Morgan Chase/Chase Home Lending commissioned a review appraisal (Review) that valued the Subject Property at $640,000. A copy of the Review is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. . 6. Respondent, while orally denying having developed and communicated the Report, provided Petitioner's investigator with a copy of the letter Respondent sent to JP Morgan Chase Bank LTD on September 10, 2008, defending the Report. A copy of that letter is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 7. Respondent also replied to the complaint by letter to Petitioner’s investigator dated October 15, 2008, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. H:\FREAB\basalo. 109.doc 2 FDBPR v. Raul Basalo Case No. 2008053109 Administrative Complaint 8. Respondent committed the following errors or omissions in the Report: A) Respondent utilized, without explanation or analysis in the Report, Comparable Sales that increased in sales price between 2005 and 2007 by $477,075, $355,000, and $419,010 (Comparable Sales 1, 2, and 3, respectively) ; B) Respondent utilized Comparable Sales 2 and 3 without their having been MLS listed, thus Respondent was unable to verify information pertaining to the amenities, condition, and possible sales concessions of these comparables; Cc) Respondent use of Comparable Sale 1 is further suspect by its having been listed at $689,900 yet sold for $860,000 and Respondent failed to disclose or analyze the anomaly; D) Respondent failed to identify or utilize other available Comparable Sales more suitable to the Subject Property than the three Comparable Sales utilized; .. E) Respondent failed to analyze the impact on Subject Property valuation of the 17 active listings (same model as the Subject Property) in the Subject Project, ranging from $539,000 to $949,000; F) Respondent made extraordinary assumptions not subject to verification as to interior condition, improvements, and H:\FREAB \basalo. 109.doc 3 FDBPR v. Raul Basalo Case No. 2008053109 Administrative Complaint measurements due to lack of MLS documentation; G) Respondent failed to analyze the Subject Property sales history to reconcile the July 2007 valuation of $836,000 with the prior sale at $550,000 in November 2006; H) Respondent failed to obtain the MLS listing history on the Subject Property or reconcile the listing history with the value stated in the Report. 9. Respondent failed to keep a copy of the Subject Property work file. COUNT ONE 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 TWO Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically the Conduct Section of the Ethics Rule, or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. H:\FREAB\basalo. 109.doc. 4 FDBPR v. Raul Basalo : Case No. 2008053109 Administrative Complaint COUNT THREE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-1(a), (b) and (c), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) 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, specifically Standards Rule 1-4(a), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) 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 2-1(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) 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 2-2(b) (viii), or other provision of the H:\FREAB\basalo. 109.doc 5 FDBPR v. Raul Basalo . Case No. 2008053109 Administrative Complaint Uniform Standards of Professional Appraisal Practice (2006) 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 2-3, or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT EIGHT 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 NINE 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 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 HAFREAB\basalo. 109.doc 6 FDBPR v. Raul Basalo Case No. 2008053109 Administrative Complaint 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 HAFREAB\basalo. 109.doc 7 FDBPR v. Raul Basalo Case No. 2008053109 Administrative Complaint certificate holder to complete and pass additional appraisal education courses; publication; restriction of practice; injunctive or mandamus relief; imposition of a cease and desist notice; 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 (8 day of _ Déeemy » 2008. ATTORNEY FOR PETITIONER of Professional Rei, sonn NSD snaanvod Sute \ Estate 7 Senior Attorney _ Division of Rea Fla. Bar No. 273694 : Division of Real Estate te Kade A phe ae mmm ” Legal Section ‘ 400 W. Robinson Street, N801 ns JAVON OS cnmeninn Ra sae Orlando, Florida 32801-1757 i ils (407) 481-5632 (407) 317-7260 - FAX PCP: MR/CK 12/08 : H:AFREAB\basalo. 109.doc 8 FDBPR v. Raul Basalo Case No. 2008053109 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. H:\FREAB\basalo. 109.doc 9 AVPRAGAL SUITS . FileNo 0707035 _Paye #3 INVOICE FILE HUMBER ‘APPRAISAL SOLUTIONS 0707036 RAUL BASALO 12217 SW 125 COURT SUITE #22 MIAME, 33185, ‘TRANSCONTINENTAL LENDING GROUP 2101 BRICKELL AVENUE MIAMI, FL 33130 invoice Date Loan Number Case dumber =| tax 0 dumber Contact Phone 07/11/2007 Purchaser/Borrower OMAYRA GONZALEZ z Propey Addess, 1200 BUCKELL axY ORIVE . sino. 2024 z City tan Subdivision THE CW6 AT BRICKELL BAY PLAZA _ = County ADE ' Stile AL ZipCode 33431 s ‘egal Descimion THE Guus AT BRICKEL GAY PLAZA CONDO UNIT 2026 UNDIY 0.217908 I IN COMMON ELEMENTS - ‘Appraisal Fee Amount . $__ ____ $350.00 ‘Mail or Handing Fee _. tL os Additional Charge No.1 . — os - Py dona Charge No.2 — 3 _ 3 Audsilional Charge No 3 $ - 2 Sates tax ( %) . . [ee 2 . Total Amountot noice $350.00 Comments APPRAISER HAS COLLECTED FEE AT TIME OF INSPECTION invoice Date Appraisal Date toan Humber Client's Phone o7uay2007 AMOUNT DUE ‘TRANSCONTINENTAL LENDING GROUP 210) BRICKELL AVENUE MIAMI, FL 33130 S____. $380.00 I) APPRAISAL SOLUTIONS: RAUL BASALO, 32217 SW 129 COURT SUITE #22 MIAMI, FL 33186 TERMS - Balance du eno recap of hatice,Plaae staat parton wt yor payment. Tak ou! Fan roe Unie Sims Sea Conpany TO) SEP BTET wo GE RPSRTS CO AW MINIS TRALIVE COMPLAINT ARPIWEAL SOWATONS % Fie No 0707036 fae #2 Property Address: 1200 BRICKELL BAY DRIVE MIAME, FL 33131 Prepared For: “TRANSCONTINENTAL LENDING GROUP 210% BRICKEL, ENE sta, 33130 Prepared As Of: o7ro3y2007 ‘APPRAISAL SOLUTIONS 12217 SW 129 COURT SUITE #22 MIAMI, FL 33186 ‘Fu prtuced by Unie Systems Sotwait Company (00) SEE-BTE7 we wiciens a ADMINISTRATIVE COMPLAINT ExXHiBiT 4] reps Sours f 1 Coonzatez 2 Fil Wo O7O7O36 Page #3 Report ra 0707036 gr purpose otis sumerary appraisal sep isto provide the lender/clien! wih an acount and adequately supported, pion oe Rae Soa [Prope Aéess 1200 BRICKELL BAY DRIVE Uni # 2024 City MAM Stale FL Zip Code 33131 Batrower OMAYRA GONZALEZ Owner of Pubic Record FABIAN RODRIGUEZ County BADE L20ei Descriovon THE CLUB AT BRICKELL BAY PLAZA CONDO LUNTT 2024 UNDIV 0,21790% INT IN COMMON ELEMENTS. ] Assessors acel # 01-4135-086-6200 Tax Yer 2006 RE Wes $ 7018.85 | i Name_THE CLUS AT BRICKELL BAY PLAZA” Phase # i Wap Relxence BVAT5 Census tach 67.0: 73 occupa SXJOwne [FTesant[ [Vaca Specal assesmians Fa HOA § $30.00 [Jer year [ipermonth Fropeiy Rigs Appraised [Fee Simple [“[Ceasehold [Joiner (desc Assignment Tyoe DX Purcase hansacion Refinance Yensacin [oe (describe) } crdey/Chent TRANSCONTINENTAL LENDING GROUP CONTRACT NEIGHBORHOOD Swe TYPICAL FOR AREA Density MEDIUMVAVG View LIMITED BAY VIEW . Specic Zoning Cassilcalion Of - CONDOMINIUM Zoning Descritiog CONDOMINIUM _ Zoning Complance Bq vega soning Do he og egdaons pam bulge esi? [Yes [TN I {NoZoning me aa _ vie Svbjec pope 3s improved (or as proposed per plans and specications] the presen uae? Beles (TN Oesciibe tA Pubiic “Other (desctibe) ‘Of ste Improvements — Type Public Private 8 fa ‘Water ‘Siteel PAVED ASPHALT iw is T NONE NOTED. ‘Santary Sewer Alley NONE NOTED i im ia il Flond Haz Aves? DX] Yes [_] No FEMA Flood Zone AE, FEMA Map # 120650 0151) FEMA Map Oiie 03/02/1994 __] ive He unliies and of-site morovements typical forthe markel aiea? Bd] Yes [| No No, describe. Pus te ay adverse Se Conon o ede acos (eases, ences, enoemena codons and vs, RETF [ [ves Baines, desenbe Lyolormation FARES NETH jESTIMIX Oetacned [] Row or Townhouse [] Garden [“[Mcvise DQ] on_| Senate Despipton <7. Buber 8 hrs Other (describe) Te “EPs = Propet nese RIES! Exterior Walls CBS [# of Lins: ‘# of Phases 643, # of Planned Phases NAT + of Elevators 6 Fool Sutace BUG # of Units Completed 643] # of Units 643] # of Planned Unis [X