Findings Of Fact Respondent Murray Carter Harris was exclusively connected with International Land Brokers, Inc., as a real estate salesman, from October 3, 1974, to September 7, 1975. During the period of respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles, each with a telephone. The office complex has a regular telephone line and a WATS line. Attached to the walls of most of the cubicles most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. 1, together with the last page, were at one time posted on the walls of some of the cubicles. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc. manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salespersons had noted. Petitioner's composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc. was in business. As a general rule, a week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers, Inc. Property owners who listed their property paid International Land Brokers, Inc. a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc. began operations, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the sales person was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners, the salespersons worked from lists which International Land Brokers, Inc. had bought from unspecified individuals, or compiled from county tax records.
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the administrative complaint be dismissed. DONE and ENTERED this 19th day of July, 1977, in Tallahassee, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings Room 530 Carlton Building Tallahassee, Florida 32304 COPIES FURNISHED: Mr. Louis B. Guttmann, III, Esquire and Mr. Richard J. R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Mr. Jack B. Feiner, Esquire 2951 South Bayshore Drive Miami, Florida 33133
Findings Of Fact Respondent Charlene Touby was exclusively connected with International Land Brokers, Inc., as a real estate salesperson, from May 23, 1975, to September 30, 1975; and again from November 17, 1975, until the filing of the complaint (and for some time thereafter). During the first period of respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles, each with a telephone. The office complex has a regular telephone line and a WATS line. Attached to the walls of the cubicles most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. l, together with the last page, were at one time posted on the walls of some of the cubicles. By the time respondent began her second period of employment with International Land Brokers, Inc., Walker J. Pankz had joined the firm as a broker. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc. manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salespersons had noted. Petitioner's composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc., was in business. A week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers, Inc. Property owners who listed their property paid International Land Brokers, Inc. a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc. began operations, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the salesperson was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners, the salespersons worked from lists which International Land Brokers, Inc. had bought from unspecified individuals, or compiled from county tax records.
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the administrative complaint be dismissed. DONE and ENTERED this 12th day of July, 1977, in Tallahassee, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 COPIES FURNISHED: Mr. Louis B. Guttmann, III, Esquire and Mr. Richard J. R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Mr. Charles A. Finkel, Esquire 801 East Hallandale Beach Boulevard Hallandale, Florida 33009
Findings Of Fact Respondent Thomas Glenn Curtiss was exclusively connected with International Land Brokers, Inc, as a real estate salesman from January 13, 1975 to September 16, 1975. During the period of respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles, each with a telephone. The office complex had a regular telephone line and a WATS line. Attached to the walls of most of the cubicles most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. 1, together with the last page, were at one time posted on the walls of some of the cubicles. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc. manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salesperson had noted. Petitioners composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc., was in business. As a general rule, a week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers, Inc. Property owners who listed their property paid International Land Brokers, Inc., a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc. began operations, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the salesperson was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners the salespersons worked from lists which International Land Brokers, Inc. had bought from unspecified individuals, or compiled from county tax records.
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the administrative complaint be dismissed. DONE and ENTERED this 4th day of August, 1977, in Tallahassee, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Mr. Louis B. Guttmann, III, Esquire and Mr. Richard J. R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Mr. Neil Flaxman, Esquire 7800 Red Road Penthouse South South Miami, Florida 33143
Findings Of Fact Respondent Sheila Traub was exclusively connected with International Land Brokers, Inc., as a real estate salesperson, from June 3, 1975, to September 9, 1975. During the period of respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles, each with a telephone. The office complex had a regular telephone line and a WATS line. Attached to the walls of most of the cubicles most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. 1, together with the last page, were at one time posted on the walls of some of the cubicles. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc. manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salesperson had noted. Petitioner's composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc., was in business. As a general rule, a week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers Inc. Property owners who listed their property paid International Land Brokers, Inc., a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc., began operation, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the salesperson was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners, the salespersons worked from lists which International Land Brokers, Inc., had bought from unspecified individuals, or compiled from county tax records.
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the complaint be dismissed. DONE and ENTERED this 22nd day of September, 1977, in Tallahassee, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings Room 530 Carlton Building Tallahassee, Florida 32304 Filed with the Clerk of the Division of Administrative Hearings this 2nd day of September, 1977. COPIES FURNISHED: Mr. Louis B. Guttmann, III, Esquire Mr. Richard J.R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Ms. Sheila Traub c/o Dan Barrie 8975 Northeast 6th Avenue Miami Shores, Florida 33153
Findings Of Fact Respondent Paul V. Stephenson, III was exclusively connected with International Land Brokers, Inc., as a real estate salesperson, from October 18, 1974 until no later than February 12, 1975. During the period of respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles, each with a telephone. The office complex had a regular telephone line and a WATS line. Attached to the walls of most of the cubicles most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. 1, together with the last page, were at one time posted on the walls of some of the cubicles. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc. manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salesperson had noted. Petitioner's composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc., was in business. As a general rule, a week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers, Inc. Property owners who listed their property paid International Land Brokers, Inc., a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc., began operation, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the salesperson was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners, the salesperson worked free lists which International Land Brokers, Inc., had bought from unspecified individuals, or compiled from county tax records
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the administrative complaint be dismissed. DONE and ENTERED this 19th day of August, 1977, in Tallahassee, Florida. ROBERT T. BENTON,II Hearing Officer Division of Administrative Hearings Room 530 Carlton Building Tallahassee, Florida 32304 COPIES FURNISHED: Mr. Louis B. Guttmann, III, Esquire and Mr. Richard J.R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Paul V. Stephenson, III 4160 Northwest 79th Avenue Apartment l-G Miami, Florida 33166
Findings Of Fact Respondent Ben Weise was exclusively connected with International Land Brokers, Inc., as a real estate salesperson, from March 31, 1975, to April 23, 1975. During the period of respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles, each with a telephone. The office complex had a regular telephone line and a WATS line. Attached to the walls of most of the cubicles, most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. 1, together with the last page, were at one time posted on the walls of some of the cubicles. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc. manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salesperson had noted. Petitioner's composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc., was in business. As a general rule, a week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers, Inc. Property owners who listed their property paid International Land Brokers, Inc., a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc., began operation, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the salesperson was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners, the salespersons worked from lists which International Land Brokers, Inc., had bought from unspecified individuals, or compiled from county tax records.
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the complaint be dismissed. DONE and ENTERED this 31st day of September, 1977, in Tallahassee, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings Room 530 Carlton Building Tallahassee, Florida 32304 COPIES FURNISHED: Mr. Louis B. Guttman, III, Esquire and Mr. Richard J.R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Mr. Ben Weise Percent Urban Development and Sales, Inc. 340 West 46th Street Miami Beach, Florida 33140
Findings Of Fact Respondent, Store Realty Corporation (Store), a wholly owned subsidiary of Terra Investment Corporation (Terra) is a registered corporate real estate broker. Respondents Robert Pepper is president of Store, Donald Morton is a vice-president of Store and, at all times here involved, both were registered real estate brokers and Active Firm Members of Store. Terra entered into a brokerage agreement on December 8, 1975 (Exhibit 24), with Holly-by-the-Sea (Holly), a joint venture, which gave Terra exclusive right of sale of the land development project known as Holly-by-the-Sea. Holly is not a corporate entity and the project consists of a 4,000 acre tract located midway between Gulf Breeze and Ft. Walton Beach, bounded on the South by the Intracoastal Waterway and on the North by the eastern portion of Pensacola Bay. Store has been engaged in the sale of undeveloped land since its incorporation in 1970, and has generally conducted its operations by telephone sales solicitation to potential out-of-state buyers. During the period between its incorporation and the termination of its operations in 1977, Store has employed some 500 to 600 salesmen. In addition to being subject to Chapter 475, Florida Statutes, store, in selling undeveloped land, is regulated by the Division of Land Sales and Condominiums of the Department of Business Regulation of the State of Florida (Land Sales). Land Sales reviews all material proposed for use in selling undeveloped land and, upon approval, assigns an A.D. number. Using or mailing material not approved by Land Sales subjects violators to penalty of having its permit to sell undeveloped land revoked. Terra employed Store to conduct the sales of Holly property and, since the property was sold on a Contract for Deed with monthly payments, to maintain the records of payments and process delinquent accounts. Other brokers, viz, Urban Development and Sales (Urban), DKW Corporation and Land Masters all located at an address different from Store were also employed to sell Holly property. None of these brokers was owned or controlled by Store, but promotional material on Holly was provided to them by Store. All material to prospective purchasers was mailed by Store and signed contracts were returned to Store who disbursed commissions to these other brokers who in turn paid their salesmen. No evidence was submitted that any non-A.D. approved material was mailed to any prospective purchaser. Ira Cohen was employed by Urban as a telephone salesman from April 1976, until the end of January, 1977, when Urban ceased operations. He solicited sales of Holly property from mid-1977, until Urban closed. He then applied for a similar job at Store, and was interviewed by Respondent Morton who asked Cohen to recite the pitch he would use to sell Holly property. When Cohen did so he was told by Morton that some of the material recited was not A.D. approved and could not be used. Cohen agreed to use approved material and was tentatively employed. Respondent Morton was the day supervisor at Store and his brother, Byron Morton, was night supervisor. Two telephone rooms were provided at Store with 16 phone booths in each room and a desk for the supervisor near the center of each room provided with capability to monitor the conversations of the salesmen. Only one supervisor was present for both rooms. In each booth was posted the A.D. approved pitch and drive script. The first evening Cohen was to begin work he asked Byron Morton if he could use certain non-A.D. approved material Donald Morton had previously told him he could not use. Byron communicated this information to Donald who contacted Pepper and obtained permission to fire Cohen. This was accomplished early that evening. The following morning Cohen returned to the Store office and contacted Willard Natof, a vice president of Terra and Store, to reapply for a job. At this tine Cohen pleaded for a job and Natof called in Donald Morton to ask if he could properly train and supervise Cohen so Cohen could be hired. Cohen promised to follow the approved script and was employed. For the first week, Cohen made front calls which are the initial contact with a prospective buyer to ask if he is interested in receiving material on the investment aspects of Holly property. Those who indicate interest are sent various A.D. approved literature on the project and a sales contract. After the customer has had time to receive this material the drive call is made in which the hard sell is presented. There is an A.D. approved script for both front and drive calls. During his tenure at Urban, Cohen obtained two or three scripts which were not A.D. approved. These scripts included statements that Monsanto and St. Regis were going to expand into the area, that the recreation park at Holly contained 5 tennis courts, that the land adjacent to Holly was unavailable for development, that the rising costs of land in the vicinity made Holly an excellent investment for the development of multifamily units, that an access channel to the Gulf had been approved, there was a new shopping mall in the near vicinity, there were two recreation beaches attached to the project, that paved roads run throughout the project, and that an investor could surely resell his property at a profit in the near future. As a matter of fact, Monsanto and St. Regis have installations within 35 miles of Holly but neither has any planned expansion in the vicinity of Holly, two tennis courts were constructed, the only paved roads are near the entrance to the project, one recreation beach is available, a new and excellent shopping mall is located some 13.5 miles distant, the county approved a bond issue to provide an access channel at Navarre Beach but no permit for such construction will be granted by the State or federal government, Land Sales will not approve a script that contains specific statements respecting resale of the property at a profit, and no county zoning has been established for the Holly tract. All of the scripts, both approved and unapproved, contained the information that the buyer could rescind his contract at any time within 90 days and his money would be refunded; that he had 6 months within which to visit the site and, if he was not satisfied with his purchase when seen, he could rescind his contract and his money would be refunded; and that, upon a visit to Holly, he would be provided with motel accommodations for two nights as well as transportation to view Holly and the surrounding area. While using the material in a non-A.D. approved script, Cohen contacted Arthur Lord, an NBC executive from Texas who entered into a contract for deed. Thereafter, Lord with an NBC television crew prepared a documentary on the various misrepresentations that had been made with refutation of the access channel at Navarre Pass from the U. S. Corps of Engineers, refutation of Monsanto and St. Regis expansions from each of these companies, and on site camera coverage of the project. This documentary, and excerpts therefrom, received national exposure, both in the Today Show and other national news shows on or about March 1, 1977. Thereafter, Lord cancelled his contract to purchase and his $60 initial payment was refunded. Immediately thereafter, Store was investigated by Land Sales, FREC, F.B.I., and the Consumer Affairs Division of the Florida Attorney General's office. When Store learned of Cohen's misrepresentation, Cohen was fired. Due to the adverse publicity generated by the TV exposure, Store ceased operations involving the sale of Holly land prior to the emergency suspension complaint and the brokerage agreement to sell Holly property has been rescinded. Store is still maintaining the payment records for the land that was sold. At all times here involved, numerous sales meetings were held by Store officers and brokers who stressed the importance of using only A.D. approved material. All material mailed by Store to prospective buyers was A.D. approved. Such A.D. approved material included a colored brochure showing pictorially the location of Holly with respect to the communities in the area, military bases, recreational facilities and distances to larger southeastern United States cities; a copy of a newspaper clipping saying the County had approved a bond issue to open Navarre Pass; copy of a newspaper article about the opening of the Santa Rosa Mall; a copy of a newspaper article about the part of Florida between Pensacola and Jacksonville; a public offering statement filed by Holly; pictorial highlights of scenes at Holly; a property report with notice of disclaimer by interstate land sales registration, HUD; a copy of newspaper article regarding Florida growth; a copy of a newspaper article regarding the Panhandle of Florida; and sample Contracts for Deed. Land Sales investigators visited Store, and other so engaged, at frequent intervals to observe the operation and to see that only authorized material was being used. During the six months immediately preceding the sale to Lord and the resulting TV exposure, the investigators found only one other incidence of unauthorized material at Store or heard any unauthorized comments made in phone conversations. This was made by Arthur Levy, a salesman who had come to Store from urban the same time as Cohen. When the Land Sales investigator told the supervisor about Levy's use of unauthorized material, Levy was fired. At the hearing Levy acknowledged that he had been told he would be fired if unauthorized material was used in his sales presentation and that he had attended sales meetings where all salesmen present were told they would be fired if non-A.D. approved material was used. All witnesses who testified regarding their purchase of Holly lots and who gave notice of cancellation were refunded payments they had made. Some of these received a refund after they had visited the property and exchanged lots even though the contract did not provide for refund after that time. Nine depositions were admitted of persons buying lots at Holly upon telephone representation. Sharp was contacted by a salesman not working for Store and induced to buy upon the representation that the land could be resold at a profit. He had made one payment when he saw the Today show, and cancelled his contract. His money was refunded. Winebarger also bought a lot upon the representation of a salesman not working for Store that the land could be sold at a profit. He signed his contract with the intent to cancel the contract within 90 days if he could not resell at a profit. When he cancelled his money was refunded. Clements had no dealings with a Store salesman. He bought upon the representation that the property would appreciate in value and received no information that would lead him to suspect fraud. He considered the information received regarding Holly property to be fairer than that received from any other interstate land sales company who had contacted him. Perkins bought a lot upon the representation that he could sell the land for more than he paid and that Monsanto was expanding into the area. After visiting the property he exchanged his lot for another, made one additional payment before he cancelled the contract and received a refund of his payments. DuPont and wife were told Monsanto was expanding, bought a lot for investment purposes, inspected the property, exchanged lots and, prior to seeing the TV program, thought they had made a good investment. After seeing the TV program they cancelled their contract and received a refund. Beaudoin bought a lot upon representations that Monsanto, St. Regis and Westinghouse were coming into the area and that it was a good investment. He too, visited the property, exchanged lots, and, after seeing the TV program cancelled his contract and received a refund. He had previously bought land in other developments in Florida. Pyle was told that the canal was going through at Navarre pass which convinced him the property would be a good investment. When he cancelled his contract his money was refunded. Helsel bought upon the representation that the canal was going through. He visited the site after the TV exposure and like what he saw. He contacted the Department of Business Regulations and was told Navarre Pass was not going through. He then went back to Holly, cancelled his contract and his payments were refunded. For several years prior to Store ceasing operations, bulletin boards at Store held memos advising the salesmen to use only A.D. approved material in their pitches and that failure to do so would result in them being fired. Monitoring equipment was available in Respondent Pepper's office in addition to that available to the supervisor who was on duty at all times sales were being made. Officers at Store as well as many of the salesmen considered Holly to be the best property they had ever had in their inventory to sell by telephone solicitation. No evidence was presented that any salesman told a prospective customer that Bankers Life Insurance Company held a mortgage on Holly. However, when Store ceased selling Holly property the records were given to Magna Corp. which is owned by Bankers Life. The Holly representative at the site works for Magna. Store's Director of Customer Services who contacts delinquent buyers of Holly property very rarely received any complaints that they had been induced to buy by misrepresentation or by a salesman's use of material not in an approved script. The thrust of their complaints with delinquency was personal financial problems in making the payments. All salesmen who testified were told by Respondents to use only the material contained in the approved script. The primary function of the supervisor was to be available in case a prospective buyer started asking questions the answers to which were not contained in material that had received A.D. approval and to stop the salesmen from responding even if the response was true. No evidence was presented that prospective buyers were told no blacks were buying land. Some buyers were told there were few blacks in the area and no evidence was presented that this was not true. Those buyers who bought for investment purposes and visited the site considered they had made a good investment prior to seeing or learning of the TV program on Holly.
The Issue Whether Murray Alter violated the provisions of Section 475.25(1)(a), and (2), Florida Statutes.
Findings Of Fact Murray Alter is a registered real estate salesman. Alter was employed by International Land Services Chartered, Inc. from 1974 to 1976 and received commission payments during that time from International Land Sales Chartered, Inc. Alter was a listing representative or "closer". Alter identified a letter signed by him to William Carey Hansard and stated that he (Alter) sent people he had contacted such letters. Hansard testified that Alter stated to him that Hansard's property could be sold easily. Hansard did not attribute any other representations to Alter and indicated that he had talked mostly with other salesmen. Hansard said Alter told him the primary means of selling the property would be by advertisement in a catalogue sent by International Land Services Chartered, Inc., to U.S. and foreign brokers. The deponents indicated that they had been contacted by a person who identified himself as Murray Alter. The McKays stated that the person identifying himself as Alter did not represent to them that International Land Services Chartered, Inc., had made other sales of property or that the company had ready buyers. They stated that the person identifying himself as Alter stated that their property would be easy to sell because there was a boom in Florida real estate. The McKays stated that the person who identified himself as Alter represented that International Land Services Chartered, Inc., would advertise their property in a catalogue which would be sent to U.S. and foreign brokers. Icard stated the person who identified himself as Alter contacted him, but did not represent that International Land Services Chartered, Inc. had made other sales or that the property could be sold immediately, or that the property could be sold at several times its price. Alter denied making any false representations to any of the persons whom he contacted. Alter explained his duties with International Land Services Chartered, Inc.
Recommendation Based upon the foregoing facts and conclusions of law, the Hearing Officer recommends to the Florida Real Estate Commission that no action be taken against the registration of Murray Alter as a real estate salesman. DONE and ORDERED this 7th day of March, 1978, Tallahassee, Florida. STEPHEN F. DEAN Hearing Officer Division of Administrative Hearings Room 530 Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Manuel Oliver, Esquire Charles Felix, Esquire Florida Real Estate Commission 400 West Robinson Street Orlando, Florida 32801 Ronald L. Fried, Esquire 2699 S. Bayshore Drive Suite 400C Miami, Florida 33133 ================================================================= AGENCY FINAL ORDER ================================================================= FLORIDA REAL ESTATE COMMISSION FLORIDA REAL ESTATE COMMISSION Petitioner, PROGRESS DOCKET NO. 2770 DADE COUNTY vs. DOAH CASE NO. 77-197 MURRAY ALTER, Respondent. /
Findings Of Fact Respondent Charlene Touby was exclusively connected with International Land Brokers, Inc., as a real estate salesperson from May 23, 1975, to September 30, 1975; and again from November 17, 1975, to April 15, 1976. During the period of respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles each with a telephone. The office complex had a regular telephone line and a WATS line. Attached to the walls of most of the cubicles most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. 1, together with the last page, were at one time posted on the walls of some of the cubicles. By the time respondent began her second period of employment with International Land Brokers, Inc., Walter J. Pankz had joined the firm as a broker. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc. manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salesperson had noted. Petitioner's composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc., was in business. As a general rule, a week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers, Inc. Property owners who listed their property paid International Land Brokers, Inc., a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc., began operations, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the salesperson was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners, the salespersons worked from lists which International Land Brokers, Inc., had bought from unspecified individuals, or compiled from county tax records.
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the administrative complaint be dismissed. DONE and ENTERED this 5th day of August, 1977, in Tallahassee, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Mr. Louis B. Guttmann, III, Esquire, and Mr. Richard J.R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Mr. Charles A. Finkel, Esquire 801 East Hallandale Beach Boulevard Hallandale, Florida 33009
Findings Of Fact Respondent Kermit Marcus was exclusively connected with International Land Brokers, Inc., as a real estate salesperson, from January 9, 1976, to September 9, 1976. Until approximately two months before respondent's employment, Jeffrey Kramer, a real estate broker, was president and active firm member of International Land Brokers, Inc. One of the corporation's offices consisted of two rooms. The front room contained Mr. Kramer's desk, a secretary's desk, file cabinets, a duplicating machine, and a reception area. The back room was divided into six cubicles, each with a telephone. The office complex had a regular telephone line and a WATS line. Attached to the walls of most of the cubicles most of the time were portions of a packet of papers that was mailed to certain prospects. Pages two through five of composite exhibit No. 1 together with the last page, were at one time posted on the walls of some of the cubicles. On November 3, 1975, Walter J. Pankz, a real estate broker, began work for International Land Brokers, Inc. Between the hours of six and half past ten five nights a week and at various times on weekends, salespersons in the employ of International Land Brokers, Inc., manned the telephones in the cubicles. They called up property owners, introduced themselves as licensed real estate salespersons, and inquired whether the property owner was interested in selling his property. When a property owner indicated an interest in selling, the salesperson made a note of that fact. The following day, clerical employees mailed a packet of papers to the property owners whose interest in selling the salesperson had noted. Petitioner's composite exhibit No. 1 contains the papers mailed to one prospect. The contents of the materials which were mailed out changed three or four times over the year and a half that International Land Brokers, Inc., was in business. As a general rule, a week or so after the initial call to a property owner who proved interested in selling, a salesperson placed a second telephone call to answer any questions about the materials that had been mailed, and to encourage the property owner to list the property for sale with International Land Brokers, Inc. Property owners who listed their property paid International Land Brokers, Inc., a listing fee which was to be subtracted from the broker's commission, in the event of sale. When International Land Brokers, Inc., began operation, the listing fee was $200.00 or $250.00, but the listing fee was eventually raised to about $300.00. In the event the same salesperson both initially contacted the property owner and subsequently secured the listing, the salesperson was paid approximately 30 percent of the listing fee. If one salesperson initially contacted the property owner and another salesperson secured the listing, the one who made the initial telephone call was paid approximately $20.00 and the other salesperson was paid between $75.00 and $90.00 or thereabouts; when more than one salesperson was involved the sum of the amounts paid to the salespersons represented about 35 percent of the listing fee. In telephoning property owners, the salespersons worked from lists which International Land Brokers, Inc., had bought from unspecified individuals, or compiled from county tax records. Respondent telephoned Robert Findlay of Elmwood Park, Illinois, three times before Mr. Findlay decided to list property he owned with International Land Brokers, Inc. Mr. Findlay sent the firm a check for three hundred fifty dollars ($350.00), as respondent had requested. Respondent told Mr. Findlay that the money would be credited against a 10 percent commission, in the event of sale, and "would be for the advertising, making up the listing and so forth, and their work towards the selling of it." Petitioner's exhibit No. 19, p. 6. Later respondent received in the mail what purported to be a proof of a page in a catalogue on which respondent's property was listed, although the property was incorrectly described.
Recommendation Upon consideration of the foregoing, it is RECOMMENDED: That the complaint be dismissed. DONE AND ENTERED this 29th day of September, in Tallahassee, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings Room 530 Carlton Building Tallahassee, Florida 32304 COPIES FURNISHED: Mr. Louis B. Guttmann, III, Esquire Mr. Richard J.R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Mr. Kermit Marcus 1362 Northeast 116th Street Miami, Florida 33161
