The Issue Whether disciplinary action should be taken against Respondents for alleged violation of Subsections 475.25(1)(a), (c), (d), and (i), F.S., Section 475.25(3), F.S., and Rules 21V-10.07 and 21V-12.06, F.A.C., as set forth in the Administrative Complaint, dated September 29, 1977. At the commencement of the hearing, counsel for the Petitioner announced that Respondent Walter L. Medlin is no longer registered with the Real Estate Commission, and that therefore he should be dismissed as a party Respondent. The request was granted by the Hearing Officer. Walter L. Medlin, as authorized representative of International Land and Investment Corporation, and Donna L. Allen, were advised of their rights in an administrative proceeding and they acknowledged that they understood the same.
Findings Of Fact Respondent International Land and Investment Corporation, Kissimmee, Florida, is registered with Petitioner as a corporate real estate broker and was so registered during the year 1975. At that time, Walter L. Medlin was registered with Petitioner as a real estate broker and also as president and active firm member of International Land and Investment Corporation. Respondent Thomas F. Wells, Kissimmee, Florida, is registered with Petitioner as a real estate broker and was so registered in 1975. Respondent Donna L. Allen, is registered with Petitioner as a real estate salesman and was so registered in 1975 with the firm of International Land and Investment Corporation. (Petitioner's Exhibits 2-4) During the month of August, 1975, Mrs. Mildred E. Bartlett, then residing in Hialeah, Florida, and her son, John B. Pate, visited Kissimmee, Florida, to make inquiries concerning the purchase of residential property in the area. At the time, Mrs. Bartlett was attempting to sell her residence in South Florida and was financially unable to purchase another residence until a sale had been effected. (Testimony of Bartlett, Pate) Respondent Wells showed Mrs. Bartlett and her son Lots 10 and 12 of a platted subdivision in Osceola County known as Neptune Shores. The two lots had homes constructed thereon which were approximately 75 percent completed. Prior to 1973, Wells and Medlin had purchased the property comprising the Neptune Shores Subdivision, and Wells had dedicated the plat of same on May 15, 1973, as the owner thereof. Lots 10 and 12 were thereafter sold to one Art Raska, who constructed the unfinished homes thereon, but thereafter defaulted on a mortgage on the property. The mortgage was foreclosed by the First Merritt Mortgage Corporation, Merritt Island, Florida, who thereby became the owner of a portion of the subdivision, including Lots 7, 10, and 12. International Land and Investment Corporation purchased a number of the lots at that time. At no time during Mrs. Bartlett's discussions with Wells and Medlin did they reveal their past and present interests in the Neptune Shores Subdivision, although she was furnished a copy of the plat. (Testimony of Bartlett, Pate, Raines, Medlin, Petitioner's Exhibit 5) Mrs. Bartlett expressed interest to Wells in purchasing Lots 10 and 12 as homes for herself and son, but told him that she would have no money to purchase the property until she sold her present house, and that therefore any purchase agreement would have to be contingent upon such a sale. Wells told her that he would check into the matter and ascertain the selling price. After returning home, Mrs. Bartlett received a telephone call from Wells during which he informed her that he would need $1,500.00 as earnest money in order that he could tell the mortgage company that he had an interested party and was holding money in his escrow account. On or about September 9, Wells wrote to her and enclosed an unsigned option contract between First Merritt Mortgage Corporation and herself which recited that for a consideration of $2,000.00 the purchaser could purchase Lots 10 and 12 for an additional sum of $44,000.00 on or before January 15, 1976. It further provided as follows: Seller will agree to cooperate with purchasers efforts to complete construction. This contract will be null and void and deposit returned if purchaser is unable to obtain the necessary permits by October 10, 1975. Evidence of a Certificate of Occupancy granted by Osceola County on either Lot 10 or Lot 12 shall extend the option period until March 1, 1976. The letter accompanying the proposed option agreement stated: "Please sign these if everything is in order and make the checks out to Thomas F. Wells, Broker, so I can deposit to an escrow account rather than have the mortgage company hold your money." The letter further stated that a "Judge owned Lots 14 and 15 for which he had paid $9,600.00 each, and that the price of Lot 11 would be $8,000.00. Although Mrs. Bartlett and her son contemplated completion of construction on the two houses which they intended to use for future residences, they had no intention of performing such work until they had purchased the property. After receipt of the option agreement, Mrs. Bartlett informed Wells that she did not want an option contract whereby she could lose her deposit if she were unable to purchase the property, but wished to have a contract of purchase and sale contingent upon the sale of her present residence. Wells told her that he would send her another contract with different wording, but did not do so. (Testimony of Bartlett, Pate, Petitioner's Exhibit 6, Respondent's Exhibit 1) During succeeding weeks, Wells urged Mrs. Bartlett to have the unfinished homes completed in order that she could qualify for a mortgage loan on Lost 10 and 12. Although she discussed this possibility with Wells, she ascertained through discussions with local financial consultants that this would be impossible due to her financial situation and that of her son. On September 21, 19975, Mrs. Bartlett and her son met with Wells and Medlin in Kissimmee. At the meeting, Mrs. Bartlett gave Medlin $200.00 for an option to purchase Lots 8, 9, and 11 in the Neptune Shores Subdivision for $6,600.00, $7,400.00 and $7,700.00, respectively, from International Land Investment Corporation by various dates in 1976. The option agreement, which was dated September 21, 1975, reflected a typewritten signature for Mrs. Bartlett, but she did not sign the same after being informed by Medlin that it was unnecessary for her to sign it. He scratched out her name on the contract and signed it himself as president of the corporation. The document was witnessed by Wells and Pate. Mrs. Bartlett was told by Medlin that he would hold the three lots in reserve for her in the event she wished to purchase them at a later date. Mrs. Bartlett had brought with her the proposed option contract previously sent to her by Wells, which provided for a $2,000.00 payment for the option to purchase Lots 10 and 12. She did not sign the contract, but gave him a check for $1,500.00 which Wells put in his escrow account on September 22. Mrs. Bartlett believed that this money was protected since it was to be placed in escrow; however, she acknowledged the fact that the $200.00 which she had given as an option on the other lots was an acceptable risk and that she did not mind losing that amount if the larger purchase of Lots 10 and 12 was not successful. Wells and Medlin both testified that Mrs. Bartlett was well aware that she was also risking the $1,500.00 and that she was concerned only about her ability to protect herself from being compelled to purchase the property in the event her present home did not sell or if she was unable to obtain mortgage financing on the new purchase. It is found from the evidence that their testimony is not credible in this respect. (Testimony of Bartlett, Pate, Medlin, Wells, Respondent's Exhibit 2) Medlin had previously contacted an official of the First Merritt Mortgage Corporation, but learned that it was not interested in taking Lots 10 and 12 off the market for an option agreement. He then negotiated a contract of sale and purchase of Lots 7, 10, and 12 from First Merritt Mortgage Corporation for a total price of $46,000.00 with an earnest money deposit of $4,000.00. It provided for closing on or before January 15, 1976. The contract was dated September 19, 195 and executed on that date by D. L. Allen on behalf of International Land and Investment Corporation. It was witnessed by Wells and Medlin. On September 23, 1975, it was executed by First Merritt Mortgage Corporation. The corporation also required that Medlin agree to guarantee performance by the buyer and he therefore signed the agreement in an individual capacity. The contract provided that no real estate commission would be paid on the transaction. Mrs. Bartlett was not informed at the September 21st meeting that these contract negotiations were pending. In late September, Wells told Mrs. Bartlett that the mortgage company wanted more earnest money and that an additional $2,500.00 would be necessary for this purpose. Mrs. Bartlett gave him a check for that amount, but later depleted her account before it cleared the bank because Wells had not provided her with a purchase contract. Wells showed Mrs. Bartlett a proposed option agreement D. L. Allen and herself which provided for a payment of $4,000.00 for the right to purchase Lots 10 and 12 on or before January 15, 1976, for the total sum of $46,000.00. It further provided as follows: "As a part of the consideration for the Seller having executed this Option: the Buyer agrees to diligently pursue the completion of the houses located on said property. All repairs or improvements will be made at no cost to the Seller and will provide the Seller with Lien Waiver at the completion of each improvement. All repairs or improvements will become the property of the Seller in the event this transaction is not completed." There was no signature block on the agreement for the purported purchaser of the option. Mrs. Bartlett had been told by Wells and Medlin at the September 21st meeting that "Mr." Allen was a "big investor" who would guarantee her commitments. In fact, Allen was Respondent Donna L. Allen who was then employed by International Land and Investment Corporation. On September 30, Wells wrote a check in the amount of $4,000.00 to Walter F. Medlin, Trustee, and on the same date Medlin wrote a check to First Merritt Mortgage Company in a like amount. Medlin's check was erroneously dated October 30, 1975. On October 3rd, the option contract was signed by D. C. Allen, and mailed to Mrs. Bartlett by Wells. On October 6, Wells' bank notified him that Mrs. Bartlett's check for $2,500.00 had been returned for insufficient funds. After various telephone conversations and a visit by Wells to Mrs. Bartlett's home, another check for $2,500.00 was sent to Wells on October 21, which he had converted to a cashier's check on October 24. The $2,500.00 represented funds that had been borrowed by Pate and given to his mother to transmit to Wells. Both Bartlett and Pate were under the impression that the additional payment would be placed in Wells' escrow account and retained until a sales contract was executed. (Testimony of Bartlett, Pate, wells, Medlin, Petitioner's Exhibit 1) In November, 1975, Mrs. Bartlett telephoned Wells and told him that she wanted a return of her money. Wells told her that he would have to consult with D. L. Allen because he had turned the money over to that individual in payment of the option that had been taken on the property. Thereafter, Allen executed an "amendment" to the agreement which was prepared by Medlin and witnessed by Medlin and Wells. The document stated in part that if the "buyer," on or before November 25, 1975, could not provide sufficient evidence as to the availability of funds to close the transaction on or before January 15, 1976, the option would terminate and funds paid by the buyer to Allen would be refunded out of proceeds of closing upon the sale of the property by Allen to a third party. By letter of November 21, 1975, Allen wrote to Bartlett referring to the option amendment and stating in part: "In view of your recent conversation with Mr. Tom Wells in which you indicated that you had no intention of accepting that Ammendment [sic] and considering that I have not received a copy of the Ammendment [sic] signed by you indicating your acceptance, I am hereby cancelling my offer to ammend [sic] the original Option. I also wish to remind you that in the event that you do not exercise that Option and comply with each and every part of that agreement there will be 'no liability to refund the money paid therefor.'" By a mailgram sent on November 24, 1975, Bartlett advised Wells that he had until November 28 to return the $4,000.00 being held in escrow which she had requested in a November 20 telephone conversation, or she would report the matter to the district attorney's office and the Real Estate Commission. Wells responded with a letter which stated that her deposit on the option contract was given to the seller as consideration for executing the option, and that he was willing to "make every effort I can to negociate [sic] the matter with Allen. Negociations [sic] seemed to be the only possible course of action for recovery of your money." On November 26, 1975, Allen wrote to Bartlett wherein she stated that since Bartlett had executed the option agreement whereby she had agreed to "deligently [sic] pursue" the completion of the houses located on the property, she had breached the terms of the option contract. It further stated that since she had made demands for reimbursement of the $4,000.00 payment, that such action could only be interpreted as abandonment of the agreement, and that she (Allen) therefore declared the option contract null and void and was retaining the $4,000.00 as partial consideration for having executed the agreement. This letter was also prepared by Medlin for Allen's signature. (Testimony of Bartlett, Wells, Medlin, Kimmig, Petitioner's Exhibit 1) Wells and Medlin had previously agreed that they would split a 10 percent commission on any sale of Lots 10 and 12. After executing the purchase agreement on the property with First Merritt Mortgage Corporation, it was agreed between Wells and Medlin that Wells would receive $1,000.00 as a real estate commission. Allen had originally funded the $4,000.00 deposit to be made on the property by Medlin. Medlin had told her that she would receive Lot 7 if the deal was completed; however, he intended to give her only an "interest" in the lot. She received her original $4,000.00 back in October, 1975, when she signed the option agreement. The reasonable market value of Lot 7 was $6,000.00 to $8,000.00. The purported purchase of the property by International Land and Investment Corporation was not consummated on or before January 15, 1976, and the $4,000.00 was forfeited. Mrs. Bartlett never received return of the $4,000.00 which she had transmitted to Wells. (Testimony of Bartlett, Wells, Medlin, Raines, Kimmig)
Recommendation That the registration of International Land and Investment Corporation as a corporate real estate broker be suspended for a period of two years, pursuant to Section 475.25(1)(a), Florida Statutes. That the registration of Thomas F. Wells as a real estate broker be suspended for a period of two years pursuant to subsections 475.25(1)(a), (c) and (i), Florida Statutes. That the registration of Donna L. Allen as a real estate salesman be suspended for a period of six months, pursuant to Section 475.25(1)(a), Florida Statutes. DONE AND ORDERED this 20th day of December, 1978, in Tallahassee, Florida. Thomas C. Oldham Hearing Officer Division of Administrative Hearings 530 Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: S. Ralph Fetner, Jr. Esquire Staff Attorney Florida Real Estate Commission Post Office Box 1900 Orlando, Florida 32802 International Land and Investment Corporation Walter L. Medlin Post Office Box 2252 Orlando, Florida 32802 Frank G. Finkbeiner, Esquire 341 N. Magnolia Avenue Orlando, Florida 32801 Donna L. Allen c/o Monarch Realty of Osceola Inc. 521 Vince Street Kissimmee, Florida 32741
Findings Of Fact The parties' pre-hearing stipulation filed on July 18, 1986, establishes the following: Respondent Charles A. Alario Sr. is now and was at all times material hereto a licensed real estate broker in Florida having been issue license number 0229080. Respondent Real Estate Services Unlimited, Inc. is now and was at all times material hereto a cor- poration licensed as a real estate broker in Florida having been issued license number 0209707. Respondent Real Estate Services Unlimited, Inc.'s broker license is currently "in limbo". At all times material hereto, Respondent Alario was officer of and qualifying broker for Respondent Real Estate Services, Inc. [sic] That a judgement was entered on December 14, 1984. That the judgement has not been satisfied. That the Respondents failed to maintain $37,000.00 of the money or any part thereof in their real estate brokerage trust account without the prior knowledge or consent of Rider, Opitz and Seale Realty, Inc. [This sub-paragraph reflects the parties' amendment on the record at hearing. T-24,2.5] Phyllis Bell was a real estate salesperson at Rider and Opitz, Inc. [previously called Rider, Opitz and Seale] from January 1979 through August 1980. (T-19). In early 1980, Ms. Bell had some dealings with Charles Alario and made some arrangements for a meeting regarding the listing of Palm Island, a property located in Charlotte County. (T-32-34) Charles Alario and Real Estate Services Unlimited represented a group of persons interested in purchasing this property. (T 31,32) On June 19, 1980, an agreement for sale and purchase of Palm Island was entered between Palm Island Partners, Ltd., seller, and Buck Creek Development Corporation, buyer. (Respondent's exhibit #8) Respondents did not have a co-buyer agreement with Rider and Opitz nor with Ms. Bell. (T-20,40,41) Charles Alario offered Phyllis Bell a referral fee to be paid to her broker of record. (T-41, Respondents' exhibit #6) This offer was refused and Rider, Opitz and Seale Realty demanded half the Palm Island sales commission: $145,100.00. (T-18,20,21, Respondent's exhibits #1 and #9) Rider, Opitz and Seale filed a civil action for the commission in 1982. Defendants were Real Estate Services Unlimited, Inc., Charles A. Alario and Knight Island Associates, Limited. (T-17, Petitioner's exhibits #4 and 5) A judgement was entered on December 14, 1984, dismissing Charles A. Alario and confirming the jury verdict of $37,000.00 against Real Estate Services, Unlimited, Inc. (Petitioner's exhibit #6) Real Estate Services Unlimited, Inc. has lawsuits for commissions against Buck Creek Development Corporation, whom it represented in sales other than the Palm Island parcel, and against Knight Island Associates, to whom the Palm Island contract for sale and purchase was assigned. (T-52-54)
Findings Of Fact The Petitioner Department of Professional Regulation, Division of Real Estate (hereafter Department), is a state governmental licensing and regulatory agency charged with the responsibility to prosecute complaints concerning violations of the real estate licensure laws of the State of Florida. The Respondent Melvin M. Lewis is now and was at all material times a licensed real estate broker in Florida holding license number 0052222. The Respondent Melvin M. Lewis' last known address is Melvin M. Lewis, Licensed Real Estate Broker, Inc., 633 N.W. 167th Street, North Miami Beach, Florida 33162. The Respondent Faye F. Lewis is now and was at all material times a licensed real estate salesman in Florida holding license number 0052101. The Respondent F. Lewis' last known address is Melvin M. Lewis, Licensed Real Estate Broker, Inc., 633 N.W. 167th Street, North Miami Beach, Florida 33162. The Respondent Larry B. Lewis is now and was at all material times a licensed real estate salesman in Florida holding license number 0052189. The Respondent L. Lewis' last known address is Melvin M. Lewis, Registered Real Estate Broker, Inc., 633 N.W. 167th Street, North Miami Beach, Florida 33162. The Respondent Cindy L. Morales is now and was at all material times a licensed real estate salesman in Florida holding license number 0123347. The Respondent Morales' last known address is Melvin M. Lewis, Licensed Real Estate Broker, Inc., 633 N.W. 167th Street, North Miami Beach, Florida 33162. The Respondent Melvin M. Lewis Licensed Real Estate Broker, Inc., is now and was at all material times a corporation registered as a real estate broker in Florida holding license number 0243694. The Respondent corporation last known address is Melvin M. Lewis, Licensed Real Estate Broker, Inc., 633 N.W. 167th Street, North Miami Beach, Florida 33162. At all material times, the Respondent M. Lewis was licensed and operating as a qualifying broker and officer for the corporate broker, Melvin M. Lewis Licensed Real Estate Broker, Inc. The Respondents M. Lewis, F. Lewis, L. Lewis and Morales, from May 4, 1977 to September 9, 1979, as sellers individually and/or in concert as owners, officers and directors of various corporations, including South Florida Property, Inc., and West Dade Acres, Inc., solicited and obtained through telephone and mail, 58 purchasers who entered into agreements for deed for one and one-fourth acre lots located within a sixty-acre parcel of land in Section 21, Range 37, Township 54, Dade County, Florida. On September 24, 1979, the Respondent Melvin M. Lewis, acting on behalf of South Florida Properties, Inc., a Florida corporation, entered into a deposit receipt contract, as purchasers with InterAmerican Services, Inc., by Lester Gottlieb, as sellers, for the purchase of 60 acres, more or less, more particularly described as: The N.W. 1/4 of the N.W. 1/4 of the N. 1/2 of the S.W. 1/4 of the N.W. 1/4 Section 21, Township 54, Range 37E, Dade County, Florida. The total purchase price of the parcel of land was $120,000.00. The purchase price was to be paid by a down payment of $1,520.00 and a first priority purchase money mortgage and note of $118,479.80. From May 4, 1977, to September 24, 1979, the Respondents had no ownership interest in the above described 60- acre parcel of land. The purchase and sale closed on April 22, 1982, as evidenced by a warranty deed wherein title to the 60-acre parcel more particularly described as: The N.W. 1/4 of the N.W. 1/4 of the N. 1/2 of the S.W. 1/4 of the N.W. 1/4 Section 21, Township 54, S., Range 37 E. lying and being in Dade County, Florida. was transferred to South Florida Properties, Inc., by Lester Gottlieb, President. The subject land lies in the East Everglades moratorium area and is subject to Dade County Ordinance 81-121 which is highly restrictive to owners of parcels or lots of land less than 40 acres. It is approximately ten miles west of Krome Avenue and is underwater on the average of nine months a year. As a result of its isolated location, it is accessible only by airboat. A building moratorium was enacted for the subject land in September, 1981, and is still in effect with no significant change planned for the reasonably foreseeable future. Upon discovering the increased restrictions on the 60-acre parcel, the Respondents demanded of InterAmerican Services, Inc., a refund of their purchase price. As a result, Respondents delivered a Quit Claim Deed dated October, 1982, from South Florida Properties, Inc., executed by Melvin Lewis, President. InterAmerican Services, Inc., delivered a satisfaction of mortgage to South Florida Properties, Inc. on December 7, 1982, which was executed by Lester Gottlieb, President. Although Respondents had on December 7, 1982, no ownership interest in the real property described in Paragraph 12 supra, they continued to collect payments from purchasers of the 1 1/4 acre lots. Respondents attempted to, and were successful in, having some of the purchasers of the 1 1/4 acre lots in the area described in Paragraph 12, supra, agree to exchange their "lots" for lots in a parcel of land more particularly described as portions of Sections 32, 33, 34, of range 37, township 55, Dade County, Florida, that was owned by Respondent Cindy Morales' company, West Dade Acres, Inc. These lots which were sold for approximately $7,500 each, were accessible only by airboat, were near the Everglades National Park and were incapable of being actually surveyed because of their isolated location. Several purchasers, in particular, Chester Herringshaw and Edward Gruber, refused to exchange their original "lots" and continued making payments to South Florida Properties, Inc. Respondent Cindy Morales deposited into the bank account of West Dade Acres, Inc., one or more of the payments made by Chester Herringshaw and/or Edward Gruber without authority or consent by them to do so. Respondents Cindy Morales and Melvin M. Lewis have failed to refund to Edward Gruber the money he paid for the purchase of real property and have failed to provide Edward Gruber clear title to the real property sold to him. To induce purchasers to enter into one or more of the 58 agreements for deed, the Respondents orally represented the 1 1/4 acre lots as valuable property, that the value would greatly increase in the near future, that the property was suited for residential and other purposes and that the purchase of the property was a good investment. The subdivisions established by the Respondents through corporations they controlled existed only on paper and were formed as part of a telephone sales operation to sell essentially worthless land to unsophisticated out-of- state buyers who believed they were purchasing potentially valuable land for investment and/or retirement purposes. The various corporations which were formed and dissolved by the Respondents, including South Florida Properties, Inc., and West Dade Acres, Inc., were attempts by the Respondents to shield themselves from liability for their fraudulent land sales activities. The Respondents collected the initial deposits and monthly payments in accordance with the agreements for deed, but the Respondents failed and refused to deliver warranty deeds as promised upon the full payment of the purchase price. The Respondents attempted to obtain the exchange of property agreements without fully and truthfully advising the agreement for deed purchasers of the quality of any of the property they were buying or exchanging. The Respondents allowed South Florida Properties, Inc., to become defunct without furnishing good and marketable warranty deeds as promised, and without returning the money received, or otherwise accounting for the money received to the various and numerous agreement for deed purchasers, notwithstanding the purchasers' demands made upon Respondents for accounting and delivery of the money paid. At the request of Respondent Larry Lewis, Randy Landes agreed to sign a document as President of Miami Kendall Estates, Inc. From that point on, Randy Landes did nothing else with or for the company and had no idea of what business Miami Kendall Estates, Inc., transacted. On November 15, 1982, Miami Kendall Estates, Inc., issued a warranty deed to Vernon Mead granting a parcel of real property to the grantee. Persons unknown executed the warranty deed by forging Randy Landes' name which forgery was witnessed by Respondents Faye Lewis and Cindy Morales and acknowledged by Respondent Melvin Lewis as a notary public. On September 24, 1982, the Respondent Larry B. Lewis unlawfully and feloniously committed an aggravated battery upon Carlos O'Toole by touching or striking Carlos O'Toole against his will by shooting him with a deadly weapon, to wit, a revolver, in violation of Subsection 784.045(1)(b), Florida Statutes. On December 8, 1982, Respondent Larry B. Lewis was convicted of a felony and adjudication was withheld. He was on probation for a period of ten years beginning December 8, 1982, by the Circuit Court of the Eleventh Judicial Circuit of Florida, in and for Dade County, Florida. Respondent Larry B. Lewis failed to inform the Florida Real Estate Commission in writing within thirty days after pleading guilty or nolo contendere to, or being convicted or found guilty of, any felony.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED: That the real estate license of all Respondents be revoked. DONE and ENTERED this 11th day of September, 1987 in Tallahassee, Florida. SHARYN L. SMITH Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 11th day of September, 1987. APPENDIX Case No. 86-3941 Petitioner's Proposed Recommended Order Paragraphs 1-29, 31 - accepted as modified. Paragraph 30 - rejected; it was not established what felony the Respondent Lewis was convicted of. Respondent's Proposed Recommended Order Paragraph 8 - Rejected. The evidence established that the corporations which the Respondents established and controlled sold the various properties. Paragraphs 9-13 - Accepted. Paragraph 14 - Accepted. Although sales were made prior to 1981, the land in question was essentially worthless when purchased. Paragraph 15 - Rejected. The moratoriums, vested rights provision offers virtually no protection to owners of the property. Paragraphs 16-17 - Rejected. The Respondents merely traded one set of undevelopable property for another. Paragraphs 18-19 - Rejected. Irrelevant. Paragraphs 20-21 - Rejected. Neither Mr. Herringshaw nor Mr. Gruber agreed to exchange their property. Paragraph 22 - Rejected. Contrary to the weight of the evidence. Paragraph 23 - Rejected. Contrary to the weight of the evidence. Paragraph 24 - Accepted. Paragraph 25 - Rejected. The corporations were formed by the Respondents to receive monies for these fraudulent land schemes. Paragraph 26 - Rejected. Contrary to the weight of the evidence. Paragraph 27 - Rejected. See No. 25. Paragraphs 28-30 - Rejected. Contrary to the weight of the evidence. Paragraphs 31-38 - Rejected. Contrary to the weight of the evidence. Paragraphs 39-42 - Accepted. Paragraphs 43-46 - Rejected. COPIES FURNISHED: James H. Gillis, Esquire Department of Professional Regulation Division of Real Estate Post Office Box 1900 Tallahassee, Florida 32802 Herman T. Isis, Esquire ISIS & AHRENS, P.A. Post Office Box 144567 Coral Gables, Florida 33114-4567 Tom Gallagher, Secretary Dept. of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32399-0750 Harold Huff, Executive Director Division of Real Estate Post Office Box 1900 Orlando, Florida 32802
Findings Of Fact Respondent Joseph R. Fida, III, was exclusively connected with International Land Brokers, Inc., as a real estate salesperson, from July 3, 1975, to November 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. On November 3, 1975, Walter J. Pankz joined International Land Brokers, Inc., as a real estate 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 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 administrative complaint be dismissed. DONE and ENTERED this 12th 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. Joseph R. Fida, III 19801 S.W. 110th Court Apartment 806 Miami, Florida 33157
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. /
The Issue Whether the Respondent is guilty on six counts of charging an advance fee for the listing of time-share estates for sale, in violation of Section 721.20(4), Florida Statutes.
Findings Of Fact Respondent is a corporation organized under the laws of Arkansas and was authorized by the Florida Secretary of State to transact business in the State of Florida from November 1991 through December 1997. Respondent's main office is now located in Mountain Home, Arkansas. Respondent's credit card terminals are in Arkansas. Respondent has an escrow and operating account in Mountain Home, Arkansas. Respondent hired Jack McClure to open and operate its Florida office. Jack McClure held a Florida real estate broker's license. National Resort Mart conducted business from its Florida office in Kissimmee, Florida, until McClure's death in December 1997. Respondent opened and maintained escrow and operating accounts in Florida from 1992 through 1997 for its Florida business. The Florida office was limited to the activities of time-share real estate sales. The Respondent did not list time- shares, nor collect any advance fees for listing time-shares at its Kissimmee, Florida, branch office. Global Title Company of Naples, Florida, conducts the closings for Respondent for the majority of their Florida time- share sales. Respondent advertised its Florida office in its direct mail brochure, sent to Florida time-share owners, with the statement: "Our Orlando office is situated only seven miles from Disney World." Ms. Valnecia Williams of Madison, Florida, owns a time- share unit at Cypress Point Resorts in Central Florida. Williams received a mailed "brochure" from Respondent's home office which advised her that Respondent was in the business of buying and selling time-shares. Based on the Respondent's direct mail flyer, Williams called the Kissimmee, Florida, telephone number to find out information related to her listing. Apparently, the call was automatically switched to the home office. She received some initial information. Several weeks later she called the Respondent's Arkansas office and talked to a different salesperson. Williams agreed to list her time-share, Cypress Pointe Resort, Unit 5206, Week 37, with Respondent on March 5, 1997, at an asking price of $12,9000 in an open listing for a period of a year. Consideration was in the form of a seven percent of gross sale of the unit, or a $750 minimum commission, to be paid to Respondent at the closing of the sale. Respondent charged an advance fee of $439 from Ms. Williams of Madison, Florida, at the time she listed her Florida time-share period at Cypress Point Resort for sale with Respondent. Williams authorized Scott Fisher, Respondent's salesperson in Arkansas to charge the refundable advertising and marketing fee of $439 to Williams' USAA Federal Savings Bank charge card. Williams was not pleased with the service provided by Respondent and, on or about July 28, 1997, demanded a refund from the Respondent. Sometime within the next two months Respondent complied with the request and refunded the fee by crediting Williams' charge card with the same amount. Kim Collins of Faith, North Carolina, owns a time-share unit at Westgate Lakes, Orlando, Florida. Collins received brochures from Respondent's home office seeking a listing for her time-share unit in Florida, approximately one year later. Collins called Respondent at an "800" number which was automatically forwarded to Respondent's main office in Arkansas. Eventually, Collins decided to use Respondent's services and borrowed the money from her mother to pay the advance fee and sign the listing contract. Respondent collected an advance fee from Mr. and Mrs. Richard Collins of Faith, North Carolina, of $439 at the time they listed their Florida time-share period at Westgate Lakes, Orlando, for sale with Respondent, by mail and check to the Respondent's main office in Arkansas. Collins' time-share has been listed for sale with Respondent since July 1, 1996. Dan Coffey of Jacksonville, Florida, owns a time-share unit at Orange Lake in Central Florida. Coffey received a brochure from Respondent's home office and called for more information. Coffey agreed to list his unit for sale with Respondent on October 14, 1996, at a negotiable price of $12,900. Respondent collected an advance fee from Mr. and Mrs. Daniel Coffey of Jacksonville, Florida, of $439 at the time they listed their Florida time-share period of Orange Lake Resort, Orlando, Florida, for sale with Respondent. In like manner, Respondent collected an advance fee from Mr. and Mrs. Rick Rogers of Maumee, Ohio, at the time they listed their Florida time-share period with Respondent. Respondent also collected an advance fee from Mr. and Mrs. Donald Gordon of Pensacola, Florida, at the time they listed their Florida time-share period with Respondent. Respondent collected an advance fee from Mr. and Mrs. William Budai of Duquesne, Pennsylvania, of $539 at the time they listed their Florida time-share period at Westgate Villas, Kissimmee, Florida, for sale with Respondent. The contract signed by each complainant was titled "Listing Agreement." The Listing Agreement between the time- share owner of the Florida unit and Respondent was for the listing of their time-share for sale for a percent of gross sale of the unit to be paid at the closing, with an advance fee payable immediately. All transactions between the owners and Respondent were made through the Respondent's home office in Arkansas. No advance fee was collected within the boundaries of the State of Florida. Complainants Collins and Coffey did not receive refunds of the advance fees they paid to Respondent.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes, enter a final order that: Finds Respondent guilty of six violations of Section 721.20(4), Florida Statutes. Respondent pay a penalty of $10,000 per violation for each of the six violations, to be paid within thirty (30) days of the entry of the final order. That Respondent refund $439 each to Kim Collins and Daniel Coffey, to be paid within thirty (30) days of the entry of the final order. That Respondent cease and desist from collecting advance fees for the listing of time-share periods for Florida residents and/or Florida time-share units. DONE AND ENTERED this 20th day of May, 1999, in Tallahassee, Leon County, Florida. DANIEL M. KILBRIDE Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 20th day of May, 1999. COPIES FURNISHED: Mary Denise O'Brien, Esquire Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 James H. Gillis, Esquire James H. Gillis Associates, P.A. 8424 Pamlico Street Tallahassee, Florida 32817-1514 William Woodyard, General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 Philip Nowick, Director Division of Florida Land Sales, Condos, and Mobile Homes Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792
Findings Of Fact Respondent Elfred Lozada was exclusively connected with International Land Brokers, Inc., as a real estate salesperson, from November 17, 1975, until on or after November 1, 1976. Shortly before respondent began his 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 began work for International Land Brokers, Inc., as a real estate 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 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 administrative complaint be dismissed. DONE and ENTERED this 31st 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 Filed with the Clerk of the Division of Administrative Hearings this 31st day of August, 1977. 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 Elfred Lozada 1850 North East 142nd Street Apartment 6G North Miami, Florida 33161
Findings Of Fact At all times material to these proceedings, the Respondent Mitchell was a licensed real estate salesman, having been issued license number 0364014 through the Division of Real Estate. The Department is the agency charged with the responsibility to prosecute charges of violations of Chapter 475, Florida Statutes, by real estate salesman who are licensed in Florida. In December 1982, while on vacation in Fort Lauderdale, Mr. Fernando Canepa accepted an invitation to take a complimentary tour of Lehigh Acres from a representative of Lehigh Corporation. Lehigh Corporation is owner of a large residential development within the community of Lehigh Acres, Florida. The community is in an undeveloped area of Lee County, Florida. A predecessor development company of Lehigh Corporation began development of Lehigh Acres as a planned community, in the early 1950's. By August 31, 1979, approximately 110,047 out of 129,000 lots had been sold within the community by the developers. The purpose of the complimentary tour, which includes a trip to the Everglades, a tour of Lehigh Acres, a promotional film and a free lunch is to sell real estate lots in this isolated and independent community. Mr. Fernando Canepa was aware of the tour's purpose when he accepted the invitation. Mr. Canepa had heard of Lehigh Corporation in Venezuela, his country of residence during 1982. As he was interested in purchasing real property in the United States, he had made the decision to visit the residential development for the possible purchase of property prior to leaving Venezuela on his vacation. A close friend of Mr. Canepa who resides in Peru, had also discussed a purchase of real estate in the United States with Mr. Canepa prior to his vacation. Mr. Ricardo Sahurie verbally authorized Mr. Canepa to seek out property in Lehigh Acre for him if Mr. Canepa believed that a purchase in that community would be a good idea. The two friends agreed that if land purchases were made, the two lots would have to be next to each other. During his tour of Lehigh Acres on January 5, 1983, Mr. Canepa was introduced to the Respondent. The Respondent was the real estate salesman assigned by Lehigh Corporation to handle lot sales within the development to members of that particular tour group. When Mr. Canepa spoke with the Respondent about a lot purchase, he was concerned about two matters: the market value of the lots and the security of his investment. Mr. Canepa was informed by the Respondent that the price for each of the two lots he wanted to purchase were $12,499.00 and $11,999.00, respectively. The prices were non-negotiable as the market value placed upon each lot was determined by the lot control department within Lehigh Corporation. Prior to the signing of Agreements for Deed on a lot for himself and a lot for Mr. Sahurie, Mr. Canepa was given the opportunity to read the Public Offering Statement on the development which had been prepared by Lehigh Corporation. On page two of the statement, potential buyers were advised of many of the inherent risks involved in a land purchase. Potential buyers were warned that land values may not increase, and that resale of lots within Lehigh Acres may be difficult or impossible. As part of the sales transaction, the Respondent was required to contemporaneously certify that he made no representations to Mr. Canepa which were contrary to the information contained in the Public Offering Statement. Mr. Canepa was given a copy of this certification, along with specific instructions to notify the Office of Interstate Land Sale Registration and the Division of Florida Land Sales and Condominiums if representations were made to him which are contrary to those in the statement. In addition, Mr. Canepa was given seven days to cancel the Agreement for Deed signed by him on January 5, 1983. Mr. Canepa chose to continue with the purchase of the lot he selected, and recommendations were made to his friend Mr. Sahurie to continue with his purchase. The two purchasers agreed between themselves to hold onto the lots for a few years for speculation purposes. A decision to build upon the lots or to sell them could be made at a later date. This plan had been discussed with the Respondent, who had voiced his approval of the plan prior to the purchase of the lots by Mr. Canepa. The Respondent discussed the recent growth in the Southwest Florida region, and the recent increases in lot valuations when Mr. Canepa informed him of his intentions. These discussions reaffirmed Mr. Canepa's confidence in his decision to purchase the lots in the development, in spite of reminders by the Respondent that future land values are unforeseeable. On September 15, 1987, Mr. Canepa returned to Lehigh Acres and learned that the lots had not increased in value. Model home plans were obtained from Lehigh Corporation, and a resale agent was contacted to assist Mr. Canepa and Mr. Sahurie in their future plans for the property. During discussions with the real estate agent, Mr. Canepa was informed that the lots could be resold for a price between $2,500.00 to $3,000.00. When the agent was asked how much Mr. Canepa could have purchased a resale for in 1983, Mr. Canepa was told that he could have purchased a resale lot for around $2,000.00. The price requested by Lehigh Corporation for each lot is based upon a number of factors such as the costs of advertising, engineering, and development, as well as the cost of the land itself. Lehigh Acres has been a development project since 1952. During some of the earlier phases of the project, lots were sold for $500.00. Purchasers of land from the earlier phase are able to resell their vacant lots at a profit for price within the $2,000.00 price range. As an individual lot owner's expenses and motivations are different than the development corporation's expenses and motivations, lots could be obtained for less money from many individual lot owners in 1983 through 1987.
Recommendation Based upon the foregoing, it is RECOMMENDED: That a Final Order be entered finding Respondent Mitchell not guilty of the charges filed in Case No. 88-4690, and that these charges be dismissed. DONE and ENTERED this 8th day of August, 1989, in Tallahassee, Leon County, Florida. VERONICA E. DONNELLY Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904)488-9675 Filed with the Clerk of the Division of Administrative Hearings this 8th day of August, 1989. APPENDIX TO RECOMMENDED ORDER IN CASE NO. 88-4690 The Respondent's proposed findings of fact are addressed as follows: Accepted. See HO #1. Rejected. Irrelevant. Rejected. Irrelevant. Rejected. Irrelevant. Rejected. Irrelevant. Accepted. See HO #3. Rejected. Irrelevant. Accepted. See HO #9. Accepted. See HO #9. Accepted. Accepted. Accepted. Accepted. See HO #10. Rejected. Irrelevant. Accepted. See HO #4. Accepted. See HO #6. Accepted. See HO #8, and #13. Accepted. Accepted. Accepted. Accepted. See HO #4. Accepted. See HO #4 and #6. Rejected. Irrelevant. Accepted. See HO #8. Accepted. Accepted. See HO #5. Accepted. Accepted. Accepted. See HO #8 and #9. Rejected. See HO #11. Rejected. Improper summary. See HO #11. Accepted. See HO #8. Accepted. See HO #9. Accepted. See HO #9 and #10. Rejected. Argumentative and irrelevant. Accepted. See HO #12. Accepted. See HO #12. Rejected. Irrelevant. Rejected. Irrelevant. Rejected. Irrelevant. Rejected. Closing argument. Conclusionary. COPIES FURNISHED: Arthur R. Shell, Jr., Esquire Department of Professional Regulation, Division of Real Estate 400 West Robinson Street Post Office Box 1900 Orlando, Florida 32801 John C. Coleman, Esquire Coleman & Coleman 2300 McGregor Boulevard Post Office Box 2089 Fort Myers, Florida 33902 Darlene F. Keller, Director Division of Real Estate 400 West Robinson Street Post Office Box 1900 Orlando, Florida 32801 Kenneth E. Easley, Esquire General Counsel Department of Professional Regulation 1940 North Monroe Street, Suite 60 Tallahassee, Florida 32399-0792
Findings Of Fact Respondent David Fredric Wolk was exclusively connected with International Land Brokers, Inc., as a real estate salesman, from June 9, 1975, to September 8, 1975. During the period of respondent's employment, Jeffry 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 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 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 forgoing, it is RECOMMENDED: That the administrative complaint be dismissed. DONE and ENTERED this 8th 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 Jr. R. Parkinson, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 Mr. Jack Feiner, Esquire Suite 345 Ingraham Building 25 Southeast 2nd Avenue Miami, Florida 33131
The Issue Whether Richard H. White violated Section 475.25 (1)(a), and (2), Florida Statutes.
Findings Of Fact Richard H. White is a registered real estate salesman. White was employed by International Land Services Chartered, Inc. for over one year as a listing representative or closer. He received commissions for his work from International Land Sales Chartered, Inc. The testimony and depositions introduced by the Florida Real Estate Commission against White indicate that the deponents and witness were called by an individual who identified himself as Ed or Bill White or Mr. White, an employee of International Land Services Chartered, Inc. This caller represented that International Land Services Chartered, Inc. could sell the individuals' property in Florida, that the sales of real property in Florida were booming, that there were foreign investors interested in purchasing Florida real estate, and that International Land Services Chartered, Inc. would advertise their property for sale in a catalogue which was distributed to real estate brokers in the United States and overseas. The caller further represented that International Land Services Chartered, Inc. would sell the property through its advertising effort. No evidence was introduced that any of these representations were false. There were no representations made by the caller that the caller had made sales, that there were prospects already interested in the individuals' property, or that the property was worth a given price based upon similar sales by the caller. White testified that he had seen the catalogue prepared by International Land Services Chartered, Inc. and that to the best of his knowledge, these were distributed to brokers in the United States and overseas. There is evidence in the record to support the fact that International Land Services Chartered, Inc. prepared listings and distributed them to brokers. There is no evidence in the record that International Land Services Chartered, Inc. did not produce such a catalogue. Mr. White stated that Mr. Shackett, the broker for International Land Services Chartered, Inc., told him that there had been sales, but discouraged White's further inquiry by telling him that he had been hired to obtain listings and was not entitled to any commission from sales and that matters relating to sales was none of his business. White's testimony was supported by the testimony of others who received similar responses from Mr. Shackett. The testimony of White and others was uncontroverted. The only evidence that Richard White was the caller who contacted the witnesses called against him, was the caller's use of the last name White and the testimony of Richard White that he was the only person named White working for the company.
Recommendation Based upon the foregoing findings of fact and conclusions of law, the Hearing Officer recommends that the Florida Real Estate Commission take no action against the registration of Richard H. White as a real estate salesman. DONE and ORDERED this 7th day of April, 1978, in 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
