The Issue Whether the allegations of the Administrative Complaint are correct and, if so, what penalty should be imposed.
Findings Of Fact The Petitioner is the state agency responsible for regulation of licensed real estate salespersons in the State of Florida. At all times material to this case, the Respondent was a licensed real estate salesperson, holding Florida license no. 0566297. Most recently, the Respondent's license identifies her as a salesperson with Robert E. Bartlett at Bartlett Realty, 3500 First Avenue North, St. Petersburg, Florida 33701. From July 11, 1995, to September 27, 1996, the Respondent was employed by Century 21, Grant Realty of Florida, 6450 Seminole Boulevard, Largo, Florida 34642. Steve and Janice Perry (the Perrys) owned a house located at 12907 Hickorywood Lane, Largo, Florida. On or about June 5, 1996, the Perrys listed the house for sale through execution of an Exclusive Right to Sell Listing Agreement with the Respondent and Grant Realty. The Perrys were very anxious to sell the house and contacted the Respondent almost daily to determine whether there was activity on the listing. In time, the Respondent presented to the Perrys a written and signed offer (the "first offer") to purchase the property. The Perrys declined the offer, but proposed a counteroffer, and executed the document. The Respondent did not provide a copy of the offer or counteroffer to the Perrys. The Respondent eventually told the Perrys that the purchasers had been unable to obtain financing. The Respondent has no documentation of the first offer. The Respondent is unable to recall the names of the prospective buyers or of any agent representing the buyers. The files of Grant Realty contain no records related to the first offer. At some time after the first offer had failed to close, the Respondent presented a second written and signed offer to the Perrys. The Respondent indicated to the Perrys that she knew the second buyer. On the Respondent's advice, Mr. Perry amended the second offer, initialed the changes, and signed the document. Mr. Perry told the Respondent that if the amendments were not acceptable to the buyer, he would accept the original offer. The Respondent did not provide a copy of the second offer to the Perrys. The Respondent has no documentation of the second offer. The files of Grant Realty contain no records related to the second offer. The day following execution of the second offer, the Perrys inquired about the status of the matter. The Respondent told Mr. Perry that the buyer was part of an "investment group" and that the group was being contacted about the Perrys' amendments. The Perrys continued to contact the Respondent about the status of the second offer, but she offered little new information. The Respondent eventually told the Perrys that the prospective buyer thought she was being "too pushy" and was refusing to discuss the matter with her. The Respondent told the Perrys that the buyer's agent would handle the sale, but stated that it would be improper for the Perrys to contact the buyer's agent and declined to identify the agent. The Perrys continued to contact the Respondent and request information. She eventually indicated that the buyer's agent was "Dave," another Century 21 agent, and suggested it could be Dave Sweet, another Grant Realty agent. The Perrys contacted Dave Sweet. Mr. Sweet had no knowledge of the second offer and was unable to provide any information. At this point, the Perrys contacted the Respondent's employer and spoke with Karen Selby, a broker at Grant Realty. Ms. Selby was unaware of any offer on the property. Conrad Grant, owner/broker of the agency, was also unaware of any pending offer on the Perry property. Ms. Selby took possession of the Perry listing file. There was no documentation in the file suggesting that any offers were received. Ms. Selby questioned the Respondent about the second offer. The Respondent stated that the offer came from "John," a man who had come through an open house a few weeks earlier, that she'd prepared a written offer according to his direction but that he had not signed it, that Mr. Perry counteroffered, and that the counteroffer had been declined. The Respondent further told Ms. Selby that the buyer had been working with "Dave," an agent in another Century 21 agency. Ms. Selby asked for the full names of the buyer and the agent, but the Respondent was unable to provide them. Ms. Selby asked the Respondent to consult her notes or the open house sign- in sheet for the information. The Respondent was unable to provide any additional information related to the offer. Ms. Selby contacted the agency's attorney and arranged a meeting with the Respondent. During this meeting, the Respondent was again asked for, but was unable to provide, additional information related to the alleged offers. Subsequent to the meeting, the Respondent provided a name and telephone facsimile number for the alleged buyer. Using the phone number, Ms. Selby attempted to contact the buyer, identified as "Brian John Edridge." Ms. Selby received a response from a business which stated that no one by that name was involved in the business. Ms. Selby discussed the matter with Dave Sweet. Mr. Sweet told Ms. Selby he was not involved in the purported offer and had no information about the situation. The Respondent's employment at Grant Realty was terminated. There is no credible evidence that the "offers" presented by the Respondent to the Perrys were real. There is no credible evidence that the prospective "buyers" identified to the Perrys by the Respondent existed. There is no credible evidence that anyone identified as "Brian John Edridge," or any variation of the name, was involved in any prospective purchase of the Perry property. There is no credible evidence that an agent identified as "Dave" was involved in any prospective purchase of the Perry property. At the hearing, the Respondent testified in her own behalf. Her testimony lacks credibility and is rejected.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is hereby recommended that the Department of Business and Professional Regulation, Division of Real Estate, enter a Final Order revoking the Respondent's real estate license. DONE AND ENTERED this 1st day of June, 1998, in Tallahassee, Leon County, Florida. WILLIAM F. QUATTLEBAUM 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 Filed with the Clerk of the Division of Administrative Hearings this 1st day of June, 1998. COPIES FURNISHED: James H. Gillis, Esquire 1415 East Robinson Street, Suite B Orlando, Florida 32801-2169 Christine M. Ryall, Esquire Division of Real Estate Department of Business and Professional Regulation Post Office Box 1900 Orlando, Florida 32802-1900 Lynda L. Goodgame, General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 Henry M. Solares, Division Director Division of Real Estate Department of Business and Professional Regulation Post Office Box 1900 Orlando, Florida 32802-1900
Findings Of Fact Respondent, at all times pertinent, was a registered real estate salesman holding license number 0314085. This license is currently under suspension as a result of disciplinary action by Petitioner. Respondent was, at all times pertinent, the President and a stock holder in D.S.A.E., Inc. D.S.A.E., in turn, was the owner (or co-owner with another corporation) of a tract of land located adjacent to U.S. Highway 27 in Broward County. Respondent, acting in his capacity as a real estate salesman, sought buyers for segments 1/ of the U.S. 27 property. He had made earlier sales of other property to Mrs. Lottie Kay and her son Michael Kay, and contacted the former in October, 1980, regarding the U.S. 27 property. The D.S.A.E. tract was zoned B-3 (business) on that portion which fronted U.S. 27. The rear segments were zoned A-1 (limited agriculture) and did not front U.S. 27. Initially, Respondent mentioned segments being offered for $60,000 and $24,000. However, Lottie Kay indicated that she could not afford the higher priced segments (which were zoned B-3). Lottie Kay asked Respondent to show her the property, and a visit to the general area was made. However, Respondent told her they could not get to the property which he said was located "on the other side of the construction." After visiting the area, she was not aware of the actual location of her property or of its character. 2/ She continued to believe that the property was "right on" U.S. 27. She based this belief on Respondent's original sales presentation rather than her visit to the area. The segment she purchased is about one quarter of a mile from U.S. 27. Lottie Kay was also confused as to the zoning on the property. She believed it was "commercial" and does not recall being told of the agricultural zoning by Respondent until about a year after the purchase. Her son, Michael Kay, who was present during a part of Respondent's initial sales presentation, heard only the B-3 zoning mentioned. Since he was not present throughout the discussion, he could have missed Respondent's reference, which he claims to have made, to the agricultural zoning on the back segments. On October 8, 1980, Lottie Kay, as buyer, contracted with Respondent on behalf of D.S.A.E. and a third party corporation, as sellers, to purchase "Tract 14" for $24,000 on an "agreement for deed." Under the terms of the contract, Lottie Kay paid $4,000 down and was to pay $215.59 per month thereafter beginning in November, 1980. Lottie Kay made the monthly payments through 1983. When she missed her first two payments in 1984, Respondent offered to reduce the contract price by $2,000 if she would resume monthly payments and make up the missing payments. Lottie Kay agreed to this modification of the contract, but discontinued further payments in April, 1984. Lottie Kay bought this property for speculation in reliance on Respondent's claim that its value would increase substantially in the immediate future. Respondent showed her newspaper clippings which supported his claim that the general area was one of future growth. He predicted her segment would be worth at least $30,000 in one year and stated that as to possible appreciation, "The sky's the limit." Respondent did not, however, point out that Lottie Kay's property could not be resold for any use other than agriculture since her segment was too small for even a home site under the existing zoning. Respondent also neglected to advise her that the property was underwater much of the year, and would have to be filled and probably permitted before any development could take place. The testimony of a real estate appraiser called by Petitioner established that the property was worth about $750 when purchased by Lottie Kay in October, 1980. 3/ This valuation was based on the witness' study of nearby land sales over a period of years as well as his inspection of the area in which the Kay segment is located. Respondent attempted to establish a higher market value by producing various warranty deeds whereby he or his affiliates had sold similar segments to other buyers for amounts approximating that agreed to by Lottie Kay. These sales do not establish value but, rather, indicate the gullibility of other buyers in making such purchases. After she fell behind in her payments, Lottie Kay tried to resell her property through Respondent in reliance on his claim at the time of his initial sales presentation that he could resell it for her in one week. When requested to do so he was unable to produce any prospective buyer. Thus, there appears to be no real market for this property, other than that generated by Respondent in his initial sales campaign. Lottie Kay did not consult an attorney or have the land surveyed or appraised prior to contracting for the purchase. Rather, she trusted Respondent who she knew to be a real estate professional. She was also aware that he was an owner of the property, but still believed she could rely on his statements that the current market value of her segment was at least $24,000 and that future profits were assured. Respondent attacks the fairness of these proceedings on the alleged misconduct of Petitioner's investigator, who encouraged Lottie Kay to come forward after she (with the help of her son) had filed a complaint with Petitioner. The investigator made statements to the Kays which indicated his belief that Respondent was engaged in fraudulent land sales, and was a menace to the public. Although the investigator's statements to the Kays were gratuitous and inconsistent with his fact finding role, there is no indication that such statements resulted in any false testimony or other unreliable evidence. Respondent notes that Lottie Kay continued to make payments on her contract with Respondent even after she had filed a complaint with Petitioner and reasons that she must have considered the property a worthwhile investment. Lottie Kay demonstrated through her testimony and recitation of her dealings with Respondent that she is gullible and imprudent in financial matters. Thus, her continued investment of funds in this property indicated lack of prudence rather than an informed belief that the property had any substantial value.
Recommendation From the foregoing, it is RECOMMENDED that Petitioner enter a Final Order finding Respondent guilty of misrepresenting property value as charged in Count II of the Administrative Complaint, in violation of Subsection 475.25(1)(b), Florida Statutes, and suspending his license as a real estate salesman for a period of three years to begin upon completion of his current license suspension period. DONE and ENTERED this 3rd day of December, 1984 in Tallahassee, Florida. R. T. CARPENTER Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 3rd day of December, 1984.
Findings Of Fact Respondent Santaniello holds real estate broker license number 0186475, and was so licensed at all times relevant to this proceeding. Santaniello is the active broker for Respondent, Sunair Realty Corporation, which holds license number 0213030. Mr. Don M. and Mrs. Agnes C. Long own two lots in Port Charlotte which they purchased as investments. By letter dated June 8, 1981, Respondents forwarded a "Deposit Receipt and Contract for Sale and Purchase" on each of these lots to the Longs. The documents established that Anni Czapliski was the buyer at a purchase price of $1200 per lot. Respondent Sunair Realty Corporation was to receive the greater of $120 or ten percent of the felling price for "professional services." The letter and documents were signed by Respondent Santaniello. Anni Czapliski was Bernard Santaniello's mother-in-law at the time of the proposed sale. This relationship was not disclosed by Respondents and was not known to the Longs at the time they were invited to contract with Respondents for sale of the lots. The Longs rejected the proposed arrangement for reasons not-relevant here.
Recommendation From the foregoing findings of fact and conclusions of law it is RECOMMENDED that Petitioner enter a Final Order finding Respondents guilty of violating Subsection 475.25(1)(b), Florida Statutes (1979), and fining each $500. DONE and ENTERED this 16th day of April, 1982, in Tallahassee, Florida. COPIES FURNISHED: Salvatore A. Carpino, Esquire Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301 Robert J. Norton, Esquire Suite 408 First National Bank Building Punta Gorda, Florida 33950 Mr. C.B. Stafford Executive Director Board of Real Estate Post Office Box 1900 Orlando, Florida 32801 Frederick Wilsen, Esquire Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301 R.T. CARPENTER Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 16th day of April.
Findings Of Fact At all times relevant hereto, Respondent John V. Nink, Jr., was registered as a real estate broker (Exhibit 1). Exhibit 1 contains no license record for Respondents Leslie M. Nink and Greater Bay Realty, Inc. In Contract for Sale and Purchase executed April 22, 1985 (Exhibit 2), Sprinkle and Anders (sellers) agreed to sell a tract of land to Tampa Technology, Inc. (TTI) for $270,000 with $7500 down payment held by Greater Bay Realty and the contract was witnessed by John V. Nink. This contract was subject to six conditions shown on "Addendum A" to the contract, the only significant one being condition 6 which provides the contract is subject to buyer receiving approval for change in zoning to allow the construction of 56 units on the site. TTI is owned by Donald P. Fisher and John M. Cherry who have been partners in numerous real estate developments in the Hillsborough County area for more than 10 years. Fisher holds a license as a real estate broker and signed Exhibit 2 as President of TTI. Both of these complaining witnesses have been involved in the purchase and development of numerous tracts of land and are fully aware of the obligations of real estate contracts. Although denied by Fisher, Respondent provided Fisher with a copy of the deed admitted into evidence as Exhibit 6. Respondent had obtained an option to purchase this tract of land but was unable to finance the property on his own. To assist in the financing, he entered into an agreement with Sprinkle and Anders whereby they would provide financing and receive 75 percent interest in the property. Under the terms of this agreement, the property was deeded to Nink and simultaneously a deed from Nink to Sprinkle, Anders and Nink was executed. This is the deed admitted into evidence as Exhibit 6 and which was provided to Fisher when Exhibit 2 was executed. When TTI applied to the county for rezoning they learned only 52 units would be approved for building on the site to be purchased in Exhibit 2. At this time the contract was voidable by the buyer but they did not desire to void the contract. Instead, they proceeded with the rezoning and attempted to raise the acquisition and development financing needed to consummate the purchase and commence construction. Some six months after first approaching the zoning authorities, TTI was successful in getting this property rezoned to authorize construction of 52 dwellings on this property. TTI's owners requested the contract remain in effect to give them additional time to locate financing. By these acts, TTI waived the contract provision that the property be rezoned to authorize construction of 56 dwellings. The principals in TTI have had numerous business relations with Leslie Nink over the past 10 years. They were aware that the Ninks were minority owners of the property for which TTI contracted to purchase and they continued to pursue the acquisition of this property until in early 1987 they concluded that they were unable to raise the necessary financing. On February 19, 1987, TTI sent a letter to John Nink requesting refund of the $7500 escrow deposit, and on March 10, 1987, a similar letter was sent to Leslie Nink (Exhibit 5). Upon receipt of Exhibit 5, John Nink contacted the Florida Real Estate Commission to request adjudication of the escrow deposit of $7500 to determine if the seller or buyer was entitled to the deposit.
Findings Of Fact At all times pertinent to the matters involved herein; Petitioner held Florida real estate salesman's license number 0403224. Her license was listed with Century 21 ACR Equities; Inc., 4222 W. Fairfield Drive, Pensacola; on May 25; 1983. On March 4, 1985, Respondent listed her license with Century 21; Five Flags Properties; Inc., in Pensacola, without terminating her listing with ACR Equities. On March 22, 1985, Five Flags terminated her listing with that firm and on April 30; 1985, ACR Equities terminated her listing with that firm. On May 14; 1985; Respondent applied for a change of status to list her license with Old South Properties; Inc., in Pensacola. That firm terminated the association on July 9, 1985. On March 19; 1985; Emmison Lewis and his wife; Lillie Mae signed a handwritten sales agreement prepared by Respondent for the purchase of a piece of property located in Escambia County; for $33,000.00. The Lewises gave her a deposit of $500.00 by check made payable to Respondent and which bears her endorsement on the back. This check was made payable to Respondent because she asked that it be made that way. Several days later; Respondent came back to the Lewises and asked for an additional $1,500.00 deposit. This was given her, along with a rental payment of $310.00; in a $2,000.00 check on March 29, 1985. Respondent gave the Lewises the balance back in cash along with a receipt reflecting the payment of the $1,500.00. On that same date; Respondent had the Lewises sign a typed copy of the sales agreement which reflected that both the $500.00 deposit and the additional $1,500.00 were due on closing. This typed copy was backdated to March 19; 1985. Both the handwritten and typed copies of the sales agreement bear the signature of the Respondent as a witness. The sale was never closed and the Lewises have never received any of the $2;000.00 deposit back. On about four different occasions, Mr. Lewis contacted Respondent requesting that she refund their money and she promised to do so, but never did. They did, however, receive the $310.00 rent payment back in cash approximately two weeks later. On April 26, 1985, James E. Webster and his wife Pearlie signed a sales agreement as the purchasers of real estate with Respondent. This property had a purchase price of $31,900.00. At the time of signing, Mr. Webster gave Respondent $150.00 in cash and a check drawn by his wife on their joint account for $400.00. Due to Mrs. Webster's change of mind, the Websters did not close on the property. They requested a refund of their deposit and Respondent gave the Websters a check for $400.00 which was subsequently dishonored by the bank because of insufficient funds. The Websters called Respondent at home several times, but she was always out. Calls to the broker with whom her license was placed were unsuccessful. Finally, however, Respondent refunded the $400.00 to the Websters in cash. Respondent had listed her license with ACR Equities in May, 1983. At no time while Respondent had her license with Mr. Bickel's firm did she ever turn over to him as broker either the $2.000.00 she received from the Lewises or the $550.00 she received from the Websters. Mr. Bickel, the broker, was not aware of these contracts and did not question her about them. He terminated the placement of her license with his firm because he found out that in early March 1985, she had placed her license with another firm., Both sales agreements for the Lewises and that for the Websters had the firm name of ACR Equities printed on them as broker.
Recommendation Based on the foregoing findings of fact and conclusions of law; it is RECOMMENDED that Respondent's license as a real estate salesman in Florida be revoked. DONE and ORDERED this 23rd day of May, 1986, in Tallahassee; Florida. ARNOLD H. POLLOCK, Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 23rd day of May, 1986. COPIES FURNISHED: Arthur R. Shell, Esquire p. O. Box 1900 Orlando, Florida 32802 Ralph Armstead; Esquire P. O. Box 2629 Orlando; Florida 32802
The Issue Whether disciplinary action should be taken against the Respondents for alleged violation of Subsections 475.25(1)(a) (1977), 475.25(1)(b) (1979), 475.25(1)(c) (1977), and 475.25(1)(d) (1979), Florida Statutes, as set forth in the Administrative Complaint, dated May 1, 1980. At the commencement of the hearing, Counsel for Respondent Marie Bonello announced that his client, who was present, was ill and 78 years of age and unable to testify, and moved to continue the hearing. The continuance was denied, but the parties agreed to allow her Counsel to file a deposition subsequent to the hearing and to hold the case open until her deposition could be filed. By letter dated August 13, 1980 Counsel for Marie Bonello stated that he anticipated a restitution settlement with complaining witness Marlene Jacobs and requested further delay in closing the case. Counsel for Respondent Gloria Campione agreed to the delay by letter dated September 25, 1980. On October 8, 1980 Counsel for Petitioner requested that a recommended order be entered, and on October 31, 1980 notified the Hearing Officer that a transcript would be ordered and a proposed recommended order would be filed by Petitioner. A transcript was filed December 8, 1980. No deposition, proposed orders, or memorandum showing restitution were filed by the parties subsequent to the hearing except Counsel for Respondent Campione filed a legal memorandum and a proposed recommended order, which were considered in the rendition of this order.
Findings Of Fact Respondent Marie Bonello was registered with Petitioner as a real estate salesperson and also as President and Treasurer of Bonne Realty Corporation and was so registered during the time pertinent to this hearing in the year 1978 (Petitioner's Exhibit 23). Respondent Bonne Realty Corporation was licensed under Corporate Certificate No. 0196358-6 by the Florida Real Estate Commission to transact real estate business and was so registered during the time pertinent to this hearing. Respondent Gloria Campione is registered as a real estate salesperson and was so registered In 1978 and at all times material to this case was either employed by or was working with Respondent Bonello and the Respondent Bonne Realty Corporation. In May of 1978 one Marlene Jacobs contacted Gloria Campione, a salesperson in Archer Real Estate, Inc., in regard to the purchase of a home in Broward County, Florida. Ms. Campione showed Ms. Jacobs several homes in the area and on or about June 9, 1978 showed her some substantially completed model homes in the Deer Run subdivision. On June 11, 1978 a Deposit Receipt and Contract for Sale and Purchase was drawn for Lot 155 of the Deer Run project on which a residence was to be constructed for Ms. Jacobs and Ms. Jacobs made an initial deposit of $1,000 (Petitioner's Exhibits 3 and 9; Transcript, page 74). Archer Real Estate, Inc. and Bonne Realty Corporation were indicated as Brokers and Marlene Jacobs as the buyer. That evening Respondent Campione and another salesperson, Shannon Brisbon, who had a contract with a buyer for the same Lot Number 155, Deer Run, had a meeting with the builder/owner of the subdivision (Respondent's Exhibit 2). The builders, Frank Sepe and Lou Gonzalez, decided to accept the contract negotiated by salesperson Brisbon rather than the contract between Ms. Jacobs and Respondent Campione because Ms. Brisbon's clients would have more money to pay on the property at closing. Respondent Campione later notified Ms. Jacobs that Lot 155 was not available to her but a similar house could be built on a similar lot. Shortly thereafter Ms. Jacobs met with Respondent Campione, Ms. Bonello, and the builders and modified the original contract in ink to reflect a change in lots. Ms. Jacobs paid the balance of the deposit for a total of $5,000 and gave it to Respondent Campione. No construction was commenced. In September of 1978 Respondent Bonello contacted Ms. Jacobs and said she desperately needed money at once and wanted Ms. Jacobs to write two checks prior to the closing of the real estate transaction. Ms. Jacobs, without notifying Respondent Campione, drew two checks dated September 8, 1978, one to Respondent Marie Bonello in the amount of $3,478.03 and one to Mr. and Mrs. Wm. Maki in the amount of $5,521.97. No receipt was given for those checks. In October of 1978 Ms. Campione learned that Ms. Jacobs had drawn the two checks in the total amount of $9,000 and had given one to Respondent Bonello and one to the Makis, whom she was informed held a mortgage on a shopping center owned or partially owned by Respondent Bonello. Respondent Campione was alarmed, fearing her client Ms. Jacobs would lose the unsecured money, and forthwith procured a promissory note and a new building contract dated October 4, 1978 from Respondent Bonello reflecting the receipt of the original $5,000 deposit plus the $9,000 in the two unsecured checks. The promissory note and contract were signed by Respondent Bonello upon the insistence of Respondent Campione. The contract showed a total of $14,000 deposit to be used for construction (Petitioner's Exhibits 1, 4 and 7). Still no construction was started. Respondent Bonello did not deny the allegations in the complaint either at the hearing or by deposition. The evidence and the testimony of Ms. Jacobs and Respondent Campione show that Respondent Bonello was a party in her capacity as President and Treasurer of the broker Bonne Realty Corporation, as a principal on a promissory note drawn to secure monies deposited by the buyer in furtherance of a real estate transaction and was a witness on many documents pertaining to the proposed real estate sale. It is the finding of the Hearing Officer that Respondent Bonello participated in all transactions pertaining to the proposed sale of a lot on which a house was to have been constructed for the buyer Ms. Marlene Jacobs. Money was obtained from the buyer by Respondent Bonello and was not to be used and was not used for construction of Ms. Jacob's home as she was led to believe. It is the further finding that Respondent Bonello signed a promissory note to Marlene Jacobs to secure the monies she had obtained from the buyer but only at the request of Respondent Campione. In November, 1978, when it appeared that no house was to be built, Ms. Jacobs discovered that Respondent Bonello had not only contracted to sell her lot to other persons but had used the deposit money in the shopping center Respondent Bonello was constructing for herself (Transcript, page 25). Ms. Jacobs has demanded the $14,000 she paid to Respondents Bonello, Campione and Bonne Realty Corporation, but no money has been received and Ms. Jacobs has been forced to seek recompense through the courts (Petitioner's Exhibits 14 and 15). After Respondent Campione had first showed the property in Deer Run to her client, Ms. Jacobs, and had negotiated the contract offer between Marlene Jacobs, buyer and Archer Real Estate, Inc. aid Bonne Realty Corporation, Co- Brokers and Frank Sepe as Seller Respondent Campione moved her license and worked exclusively with Respondent Marie Bonello. Archer Real Estate, Inc. is not involved in this case. At the hearing evidence was entered indicating that Bonne Realty (corporation was in existence and licensed at the time the foregoing complaint was filed and at the time of the subject transaction. Respondent Marie Bonello was listed as the President, Treasurer and 50 percent shareholder and broker for the corporation.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is hereby RECOMMENDED: That a final order be entered finding Respondent Marie Bonello guilty of the charges alleged in the Administrative Complaint, and suspending her for a period of two (2) years; That a final order be entered suspending the registration of Bonne Realty Corporation for two (2) years and until compliance with a lawful order imposed in the final order of suspension; That a final order be entered dismissing the complaint against Respondent Gloria Campione. DONE ad ORDERED this 19th day of December, 1980, in Tallahassee, Leon County, Florida. DELPHENE C. STRICKLAND Hearing Officer Division of Administrative Hearings 101 Collins Building Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 19th day of November, 1980. COPIES FURNISHED: Frederick H. Wilsen, Esquire Department of Professional Regulation 2009 Apalachee Parkway Tallahassee, Florida 32301 Alan J. Werksman, Esquire Suite 404, Interstate Plaza 1499 West Palmetto Park Road Boca Raton, Florida 33432 Robert M. Arlen, Esquire 2700 North East 14th Causeway Pompano Beach, Florida 33062
Findings Of Fact James W. Collins was first licensed in Florida as a real estate salesman in 1978 and has been continuously so licensed since that time. At all times relevant hereto, he was licensed as a real estate salesman. On January 14, 1983, Respondent pleaded nolo contendere to three counts of grand theft, adjudication of guilt was withheld and he was placed on probation for five years. Conditions of probation included residing in the Department of Corrections for 300 days and making restitution. On January 14, 1983, Respondent Pleaded nolo contendere: to uttering a forged instrument (using a stolen credit card), adjudication of guilt was withheld and he was placed on five years probation to run concurrently with the probation noted in Finding 2. On January 14, 1983, Respondent pleaded nolo contendere to five counts of forgery, involving the same stolen credit cards in 3 above, adjudication of guilt was withheld and he was sentenced to the same five years probation and conditions of probation as in 2 and 3 above. In an application for licensure as a real estate broker sworn to on June 20, 1984, Respondent answered question 8, which asks if applicant has ever been arrested or charged with the commission of an offense, "No." In the addendum to this application which also contains the signature of Respondent, he answered the rephrased question 8, "No."
The Issue At issue herein is whether Respondents' real estate licenses should be revoked or suspended or whether they should be otherwise disciplined for failure to comply with the provisions of Section 475.25(1)(a) Florida Statutes (1977) by failing to disclose a fire-damaged attic to the purchasers of a house.
Findings Of Fact At all times pertinent hereto, Respondents Maureen Ann O'Malley and Frederick E. Lewis held real estate license numbers 0065689 and 0052102 respectively. Respondent O'Malley was employed as a broker-salesman by Respondent Lewis, who operated under the trade name of Lewis Realty with offices in Atlantic Beach, Florida. On or about May 17, 1979, Respondent O'Malley negotiated a contract for the sale of a house owned by Respondents to James E. and Gloria Gipson, husband and wife (Respondents' Exhibit No. 1). The house was located at 825 Plaza Drive, Atlantic Beach, Florida, and the total purchase price was $28,500. In November, 1965, a fire had occurred in the attic of the Gipson's house causing damage to the electrical wiring, and leaving portions of the rafters and attic floor in a charred and blackened condition. However, no structural damage occurred. Shortly after the fire, some of the trusses in the roof were reinforced with two by fours in order to insure the structural integrity of the premises. The house has been sold on a number of occasions since the fire occurred, and before the Respondents purchased the house in early 1979, the most recent sale was 4 or 5 years earlier. The attic is a small space between the roof and the ceiling, and is reached by climbing a ladder and crawling through an opening in the ceiling. It is too small to stand in, cannot be used for living purposes, and its value is limited to storing boxes, suitcases and the like. Prior to the closing, the Gipsons were advised by O'Malley to inspect the property, and if any problems existed, they would he corrected at Respondents' expense. The Gipsons visited the house on at least one occasion before the closing, and were given the keys for the purpose of measuring curtains and installing a television antenna. However, at no time did they inspect the attic, or were they apprised by the realtor of the fact that a fire had occurred. The attic was finally inspected by Mr. Gipson several days after the house was purchased. He found portions of the attic charred, and covered with ashes and soot. Upon being advised by the Gipsons of the attic condition, O'Malley had a contractor check the attic for structural damage. There being none, she then offered to provide cosmetic repairs by spraying it with silver paint, and laying plywood strips on the floor. However, this was unsatisfactory to the Gipsons. Respondent O'Malley did not disclose the attic condition to the Gipsons because (a) she considered the matter to be "immaterial", particularly since there was no structural damage to the attic, (b) the house had been sold on several occasions since the fire, and (c) she was not aware of any prior complaints. Respondent Lewis had only limited contact with the Gipsons, and was not involved in the negotiation of the sale of the house.
Recommendation From the foregoing findings; fact and conclusions of law, it is RECOMMENDED that Maureen Ann O'Malley be found guilty of violating Section 475.25(1)(a) Flrida Statutes (1977), by reason of failure to disclose to or buyers a fire-damaged attic in a residence located at 825 Plaza Drive, Atlantic Beach, Florida. It is further RECOMMENDED that Respondent O'Malley be given a private reprimand. It is further RECOMMENDED that the charges against Respondent Frederick E. Lewis be dismissed. DONE and ENTERED this 12th day of February, 1981, in Tallahassee, Florida. DONALD R. ALEXANDER Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 12th day of February, 1981. COPIES FURNISHED: S. Ralph Fetner, Jr., Esquire Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301 Myron S. Dunay, Esquire 912 American Heritage Life Building Jacksonville, Florida 32202 Ms. Maureen Ann O'Malley 1195 Mayport Road Atlantic Beach, Florida 32233 Mr. Frederick E. Lewis c/o O'Malley Real R:tote 1195 Mayport Road Atlantic Beach, Florida 32233
Recommendation The Hearing Officer, based upon the foregoing Findings of Fact and Conclusions of Law, recommends that the Real Estate Commission accept the application of Harry A. Yeargin. DONE and ORDERED this 16th day of September, 1976 in Tallahassee, Florida. STEPHEN F. DEAN, Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Randy James Schwartz, Esquire Florida Real Estate Commission 2699 Lee Road Winter Park, Florida 32789 W. O. Birchfield, Esquire 3000 Independent Square Jacksonville, Florida 32202
Findings Of Fact Testimony established that during late December, 1975, Land Re-Sale Service, Inc., a Florida corporation, filed application with the Commission, seeking registration as a corporate real estate broker. That application revealed that Respondent Frank Viruet was to become the Active Firm ember Broker, and Vice President of the company; that Carol Bauman was to become Secretary-Treasurer and that Lee Klein was to become President and Director of the company. Testimony reveals that Carol Bauman is the wife of the Respondent Bernard Bauman; that Lee Klein is the sister of Carol Bauman and that Jeffrey Bauman is the son of Bernard Bauman. Subsequent to the filing of the above referenced corporate application for registration, the name was changed to Noble Realty Corporation and shortly thereafter to Deed Realty, Inc., and that at each such change, new application for corporate registration was filed with the Commission. Evidence also revealed that the officers and Active Firm Member Broker remained as stated and therefore for all legal purposes, the above corporate entities are one and the same. Turning to the complaint allegations in Count One, according to the certificates of the Commission's Chairman, dated December 3, which was offered in evidence by Petitioner and admitted without objection, during the period of November 1, 1975 through the date of said certificate (December 3, 1976), which covers the material dates of the complaint herein, no registration was issued to or held by the above three named corporations. This was further confirmed by testimony of Bernard Bauman who was to have become a salesman associated with the above entities and by Frank Viruet, the broker, who was to have become the Active Firm Member Broker for the above entities. Approximately December 2, 1975, Land Re-Sales Service, Inc., entered a written lease for office premises known as Room 212, Nankin Building, which is located at 16499 N.E. 19th Avenue, North Miami Beach, covering the period January 1, through December 31, 1976. (A copy of the lease was entered into evidence by stipulation of the parties.) The unrebutted testimony of Petitioner Reagan was that he observed, during his investigation of this cause, a building directory on the ground floor entrance to the Nankin Building displaying the name Noble Realty Inc., and a similar display on the building directory on the second floor. Petitioner's witness, Peter King, representative for Southern Bell Telephone Company testified that based on records received, three phones were installed in said room 212, Nankin Building on December 27, 1975, in the name of Land Re-Sale Service, Inc. and that from January 2, 1976 through January 16, 1976, approximately 575 calls were made from the above phones during evening hours to out-of-state numbers. Bernard Bauman and Jeffrey Bauman admitted to having made phone calls to out-of-state numbers for purposes of soliciting real estate sales listings, but both were unable to recall nor did they have records to substantiate how many calls they made. Bernard Bauman testified that approximately four listings were obtained with an advance fee of $375.00 for each listing. He further testified that upon being advised by the investigator with the Commission that the operation was in violation of the licensing law, by reason that no registration had been issued to the applicant company and that all who were engaging in real estate activities for said company were in violation of the licensing law. Thereafter the premises were closed and as best as can be told, all real estate activities ceased. This was further confirmed by Petitioner Reagan. The evidence respecting Count two of the administrative complaint established as stated above that Respondents Bernard and Jeffrey H. Bauman solicited real estate listings with representations to property owners that the listings would in fact be published and disseminated to brokers nationwide. However, both Baumans admitted that their listings were never published or otherwise disseminated to brokers. According to Bernard Bauman's testimony, no monies received were ever returned. There was no evidence to show that Respondent Bernard Bauman knew at the time of soliciting that no bona fide effort would be made to sell properties so listed with Noble Realty Corporation.
Recommendation Based on the above findings and conclusions of law, it is therefore recommended that the registration of Bernard Bauman be revoked. DONE and ENTERED this 12th day of January, 1977, in Tallahassee, Florida. JAMES E. BRADWELL, Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304
