Findings Of Fact Respondent is a state certified general appraiser, holding license number RI 0000912. In late 1993 First Sarasota Mortgage Company hired the appraisal company for which Respondent worked to prepare a "small income property report." This was a short form appraisal report used for multifamily housing, up to seven attached units. Respondent visited the subject duplex to meet the borrower and inspect the property. He found the duplex in bad disrepair. The building was constructed in 1928. Forty or fifty years ago a prior owner removed a second story from the building, leaving it a single-story building. The interior walls are the original walls of the building, which is a legal nonconforming use in an area without other duplexes or similar properties. The building also suffered from a serious termite inspection. Respondent reported what he had seen to the loan officer at First Sarasota. He told her that the property had considerable deferred maintenance and was not as represented by the borrower to the bank. Contrary to the borrower's assurances, the building was infested with termites, either uninsured or underinsured, and not owner-occupied. The loan officer instructed Respondent to continue the appraisal and try to find comparables. After about two and one- half days of research over a five day period, during which time he kept the loan officer informed of his lack of progress, Respondent contacted the loan officer and told her what he had found. After searching in a 15 mile-radius Respondent had still been unable to find properties that did not require large adjustments due to the age or condition of the property. The loan officer agreed that the comparables were useless. Respondent asked her whether he should continue the project or stop. She said that she would talk to the borrower and get back to Respondent. The loan officer called Respondent the next day and said stop working on the project. The loan officer denied the loan application, evidently due to the inadequacy of the property to be mortgaged. Although the lender ordered the appraisal, the borrower had paid the lender in advance for the appraisal. Respondent went to his supervisor and explained that the borrower had already paid $450, and Respondent felt uncomfortable not giving him anything. Respondent suggested that they provide the lender with a letter of opinion based on their opinion of the worth of the property using a cost approach, omitting the market and income approaches due to the absence of comparables. The supervisor approved the issuance of a letter of opinion. A copy of the letter went to the borrower. Respondent did not hear from the borrower for some time after issuing the letter of opinion. Then the borrower asked for a formal appraisal report. Respondent offered a partial refund or the letter of opinion, but the borrower insisted on a formal appraisal report. which Respondent could not provide. The letter of opinion is on the letterhead of Respondent's employer and is dated October 4, 1993. Addressed to First Sarasota, the letter, which is signed by Respondent, describes the property and states: After a thorough inspection of the property, an intensive search of the Lee County Property appraisers tax records, the last three years of recorded sales taken from the Lee County REDI records, sales from the past two years taken from the Ft. Myers MLS and telephone interviews with local realtors and appraisers, it is our opinion that if an appraisal were to be per- formed on this property, the estimated fair market value of the subject property as of the date of inspection, 09/02/93, would be $65,000 to $75,000. The one-page letter explains in detail the calculations under the cost approach for the property, leading to a total value of $92,000 for land and building. A note adds that the cost approach was given little weight due to the magnitude of needed repairs, including repairs for termite damage. The final sentence of the letter states: "This is a letter of opinion only and is not meant to be misinterpreted or utilized as an appraisal." Twice, the letter disclaims being an appraisal report. The letter is accurate, reasonably detailed, and carefully conditioned. The main issue in the case is whether the letter of opinion is a permissible alternative to a formal appraisal report under the Uniform Standards of Professional Appraisal Practice (USPAP) that are incorporated into the disciplinary statutes. Statement of Appraisal Standards No. 7 was adopted on March 22, 1994, and is included in the 1995 USPAP. Statement No. 7 addresses the situations under which an appraiser may perform an assignment that calls for something less than, or different from, a formal appraisal, as required by USPAP standards. The commentary identifies the issue as follows: Throughout the history of real property appraisal practice, a perception has existed that certain types of transactions in the real estate market require something less than or different from a Complete Appraisal. The phrase something less than or different from in this context has meant a Limited Appraisal and a condensed report. To distinguish this type of assignment from a Complete Appraisal, different names have been created for this activity, including Letter Opinion of Value, Update of an Appraisal, Recertification of Value, and, more recently, Evaluation of Real Property Collateral. 1995 USPAP, page 73. Statement No. 7 proceeds to describe a "complete appraisal" and "limited appraisal" and a "self-contained appraisal report," "summary appraisal report," and "restricted appraisal report." Mentioning a provision that permits an appraiser to enter into an agreement that "calls for something less than, or different from, the work that would otherwise be required by the specific guidelines," Statement No. 7 explains: This provision goes on to permit limited departures from specific guidelines provided the appraiser determines the appraisal process is not so limited as to mislead the client and intended users of the report, the appraiser advises the client of the limitations and discloses the limitations in the report, and the client agrees that the limited service would be appropriate. 1995 USPAP, page 73. After an extended discussion of the types of appraisal reports and appraisals, Statement No. 7 concludes in part: Clarification of Nomenclature Various nomenclature has been developed by clients and client groups for certain appraisal assignments. The development of this Statement on Appraisal Standards is a response to inquiries about several types of appraisal assignments, and it is appropriate to clarify the meaning of these terms for future reference. The term Letter Opinion of Value has been used to describe a one-page letter sent to a client that stated a value estimate and referenced the file information and experience of the appraiser as the basis for the estimate. This type of service does not comply with USPAP, and should be eliminated from appraisal practice. . . . The Restricted Report is the minimum report format and replaces the concept of the Letter Opinion of Value. 1995 USPAP, page 75. The 1993 Uniform Standards of Professional Appraisal Practice, which was in effect at the time of the subject transaction, does not contain Statement No. 7 because the statement was not in effect at the time, nor at the time of the subject transaction. Appraisers have historically used letters of opinion and not been disciplined. Statement No. 7 represents an attempt, in 1994, to provide and clarification "for future reference." Nothing in Statement No. 7 nor the 1993 USPAP supplies Petitioner with any basis for disciplining Respondent for the use of the letter of opinion in 1993. The client in this case was First Sarasota, to which the borrower paid the appraisal fee. Respondent's letter is directed to the client, not the borrower. Nothing in the letter could possibly mislead the client or the borrower. The limitations of the letter are largely apparent in the letter itself. Perhaps most important, Respondent consistently kept the client informed about the project and disclosed for his client the abject condition of the property and misrepresentations of the borrower. Respondent's diligence in fact engendered the complaint from the borrower that resulted in this case. After the subject transaction the restricted appraisal report replaced the letter of opinion. Respondent discontinued use of letters of opinion since the October 4, 1993 letter. In October 1993, however, Petitioner could not discipline an appraiser for the use of a letter of opinion, at least under the facts of this case. The October 4, 1993 letter was not an appraisal report under either then-existing USPAP standards, but was a widely recognized alternative to a formal appraisal report. In October 1993, as is clear from the language of Statement No. 7, USPAP had not created the alternative of the restricted appraisal report and had not limited all communications from appraisers to one of three types of reports. There is absolutely no evidence that Respondent failed to use reasonable diligence in the preparation of an appraisal report.
Recommendation It is RECOMMENDED that the Florida Real Estate Appraisal Board enter a final order dismissing the Administrative Complaint against Respondent. ENTERED on December 21, 1995, in Tallahassee, Florida. ROBERT E. MEALE, 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 21st day of December, 1995. COPIES FURNISHED: Linda Goodgame, General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, FL 32399-0792 Steven W. Johnson, Senior Attorney Department of Business and Professional Regulation Division of Real Estate P.O. Box 1900 Orlando, FL 32802 Gary A. Berleue, pro se 13604 Wainwright Ave. Port Charlotte, FL 33953 Darlene F. Keller, Division Director Division of Real Estate 400 West Robinson Street Post Office Box 1900 Orlando, FL 32802-1900
The Issue Whether Respondent committed the violations alleged in the Administrative Complaint? him? If so, what disciplinary action should be taken against
Findings Of Fact Respondent is now, and has been since September 23, 1991, a Florida-licensed real estate salesperson (holding license number 0579778). On September 30, 1993, his license became "involuntary inactive." His license was reactivated effective November 22, 1994, and remained active through September 30, 1995. Respondent's license is currently in "involuntary inactive" status. In January of 1994, Respondent was hired to (and thereafter did work) as a real estate salesperson for 4% Realty, Inc. (4%). The decision to hire Respondent was made by Frank Eckert, 4%'s broker. At no time did Respondent advise Eckert that he (Respondent) did not have an active real estate salesperson's license. On January 26, 1997, and January 27, 1997, Respondent provided $500.00 to 4% (in the form of two checks made out to 4%, one, dated January 26, 1994, in the amount $300.00 and the other, dated January 27, 1994, in the amount of $200.00). The $500.00 represented a deposit made by Respondent in connection with a proposed real estate transaction involving Respondent (as the buyer) and Mark Solowitz (as the seller). By letter dated March 3, 1994, Respondent notified Solowitz that, as of January 26, 1994, there was “on deposit in 4% Realty, Inc., Escrow account a total sum of $500.” The real estate transaction between Respondent and Solowitz was never finalized. After the transaction failed to close, Eckert returned Respondent’s $500.00 deposit to Respondent. On or about October 12, 1994, Respondent applied and interviewed for a salesperson position in the Weston office of Prudential Florida Realty (Prudential). The interview was conducted by Dorothy McCullough, the branch manager of Prudential's Weston office. Respondent made certain statements during the interview with which McCullough was "not comfortable." At the conclusion of the interview, McCullough told Respondent that she would "get back to him" and "let him know" of her decision. At no time did McCullough hire Respondent or authorize him to use Prudential's forms or stationary or to act as an agent for Prudential. On or about October 13, 1994, Respondent submitted to First Atlantic Realty (First Atlantic), on behalf of prospective tenants, an offer to lease property (located at 3350 Ivy Way in Miramar) listed by First Atlantic. Respondent purported to be acting as a representative of Prudential. When McCullough discovered what Respondent had done, she telephoned him to make sure that he understood that he had not been, nor would he be, hired by her to work for Prudential. Subsequently, First Atlantic's broker, Roger Herman, learned that the prospective tenants on whose behalf Respondent had submitted the offer had already moved into the rental property notwithstanding that their offer (which was "extremely weak") had not been accepted.3 Herman thereupon went to the rental property "to find out what was going on." He attempted to communicate with the prospective tenants, but was unsuccessful because they spoke ”very little English." He then telephoned the police. Upon arriving on the scene, the police spoke with the prospective tenants and persuaded them to vacate the premises. On or about October 24, 1994, Respondent submitted to First Atlantic, on behalf of the same prospective tenants, another offer to lease the property at 3350 Ivy Way. On this occasion, however, Respondent was acting as a salesperson in the employ of 4%. Herman responded to this second offer by contacting the Department by telephone and discussing the situation with a Department representative. During the discussion, Herman was advised by the Department representative that Respondent did not possess an active salesperson's license. Herman then telephoned Eckert and informed him of Respondent's licensure status. After speaking with Herman, Eckert telephoned the Department and received confirmation that Respondent did not have an active salesperson's license. Eckert then contacted Respondent and advised him that his employment with 4% was terminated.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Commission issue a final order finding Respondent guilty of the violations described in Conclusion of Law 41 of this Recommended Order and revoking his real estate salesperson's license for having committed said violations.DONE AND ENTERED this 28th day of April, 1997, in Tallahassee, Florida. STUART M. LERNER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (904) 488-9675 SUNCOM 278-9675 Fax Filing (904) 921-6847 Filed with the Clerk of the Division of Administrative Hearings this 28th day of April 1997.
The Issue The issue in this matter is whether the Florida Real Estate Commission may deny Petitioner’s application for a license as a real estate sales associate, and, if so, whether it is appropriate to do so based on the underlying facts.
Findings Of Fact The Commission is the state agency charged with licensing real estate sales associates in Florida. See § 475.161, Fla. Stat. On January 21, 2016, Petitioner applied to the Commission for a license as a real estate sales associate. In her application, Petitioner dutifully divulged that on December 12, 2002, the Commission revoked her real estate broker’s license. On August 16, 2016, the Commission issued a Notice of Intent to Deny notifying Petitioner that it denied her application for a sales associate license. The Commission denied Petitioner’s application based on its finding that Petitioner’s broker’s license was previously revoked by the Commission in 2002. At the final hearing, Petitioner explained the circumstances that led to her broker’s license revocation. In 2000, a Commission investigator audited her real estate trust account. The audit uncovered information that Petitioner failed to timely transfer a $1,000 deposit and properly reconcile her escrow account. Petitioner disclosed that a sales contract she was handling required the buyers to deposit $1,000 with her as the broker. The sale fell through, and the buyers did not close on the house. In May, 2000, the buyers demanded Petitioner transfer the deposit within 15 business days. Petitioner, however, did not forward the deposit out of her escrow account until four months later in September 2000. Based on this incident, the Commission alleged that Petitioner failed to account for delivered funds; failed to keep an accurate account of all trust fund transactions; failed to take corrective action to balance her escrow account; and filed a false report in violation of sections 475.25(1)(d)1, 475.25(1)e, 475.25(1)(l), 475.25(1)(b) and Florida Administrative Code Rule 61J2-14.012(2). Based on the charges, the Commission ordered Petitioner’s real estate broker’s license permanently revoked. Petitioner stressed that she did not steal the buyers’ money. Her mistake was in not timely transferring the deposit from her trust account. Petitioner asserted that she simply lost track of the funds. At the final hearing, Petitioner accepted full responsibility for her mismanagement. At the final hearing, Petitioner expressed that she first entered the Florida real estate industry in 1982 when she became a licensed real estate sales associate. In 1987, she obtained her broker's license. She subsequently purchased a Century 21 franchise. She conducted her real estate business until 2002 when her broker’s license was revoked. Petitioner explained that she is not seeking another broker’s license from the Commission. Instead, she is just applying for another sales associate license. Petitioner described the difference between a sales associate and a broker.5/ Petitioner stated that a sales associate works directly under, and is supervised by, a broker. The sales associate interacts with prospective buyers and sellers, negotiates sales prices, and accompanies clients to closings. Regarding financial transactions, however, the broker, not the sales associate, processes all funds related to a real estate sale. The broker, not the sales associate, transfers funds into and out of escrow accounts. In other words, the error Petitioner committed as a broker in 2000 could not happen again if she was granted a sales associate license. Petitioner further testified that during the time she worked as a sales associate, she was involved in the sale of approximately 100 houses. Petitioner represented that she never received any complaints or criticisms from any of her clients. Petitioner relayed that she became motivated to return to the real estate business following her husband’s death in 2015. Petitioner expressed that she was very good at selling houses. Real estate is her passion. She voiced that she eats, sleeps, walks, and talks real estate. Despite her misstep in 2000, Petitioner declared that she is a very honest and hardworking person. She just wants another chance to work in the profession that she loves. Currently, Petitioner works for a charitable organization. She helps administer and manage the charity’s finances. Petitioner represented that she has never failed to meet her financial responsibilities. She has always accounted for all of the funds for which she is entrusted (approximately $8 million since she began working for the charity over 20 years ago). No evidence indicates that Petitioner has committed any crimes or violated any laws since her broker’s license was revoked in 2002. At the final hearing, Petitioner presented three witnesses who testified in favor of her receiving a sales associate license. All three witnesses proclaimed that Petitioner is trustworthy, of good character, maintains high moral values, and is spiritually strong. The witnesses, who know Petitioner both personally and professionally, opined that she is honest, truthful, and has an excellent reputation for fair dealing. All three witnesses declared that the public would not be endangered if the Commission granted Petitioner’s application for licensure. Petitioner also produced six letters of support. These letters assert that Petitioner is an honorable and trustworthy person. Based on the competent substantial evidence presented at the final hearing, the preponderance of the evidence provides the Commission sufficient legal grounds to deny Petitioner’s application. Consequently, Petitioner failed to meet her burden of establishing that she is entitled to a license as a real estate sales associate. However, as discussed below, Petitioner demonstrated that she is rehabilitated from the incident which led to the revocation of her broker’s license in 2002. Therefore, the Commission may, in its discretion, grant Petitioner’s application (with restrictions) pursuant to sections 475.25(1) and 455.227(2)(f).
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, the Florida Real Estate Commission has the legal authority to deny Petitioner’s application for licensure. However, based on the underlying facts in this matter, it is RECOMMENDED that the Florida Real Estate Commission enter a final order granting Petitioner’s application for a license as a real estate sales associate. DONE AND ENTERED this 10th day of May, 2017, in Tallahassee, Leon County, Florida. S BRUCE CULPEPPER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 10th day of May, 2017.
Findings Of Fact Petitioner, Jules Lipp, was a candidate on the real estate broker's examination given on September 24, 1984, in Miami, Florida. The test is administered by respondent, Department of Professional Regulation, Division of Real Estate (Division), and requires a score of 75 to pass. The broker's licensing examination is developed by respondent and based on reference books authorized and published by the Division, although individual real estate schools may publish their own materials. However, the Division is not responsible for any materials published by real estate schools which may deviate from or differ with the authorized reference books from which the questions are drawn. The instructions on the examination require the candidates to choose the most correct answer. Whenever questions include a negative word, that word is underlined to emphasize and highlight the negative response desired. The questions on the examination are reviewed prior to the administration of the examination by a validation committee consisting of an attorney, a Real Estate Commission member, the Division education director, and the Division examination development specialist. On an undisclosed date petitioner received notice that he had failed the examination. After receiving no satisfaction at a review session with Division personnel in Orlando, he requested a formal hearing to challenge questions 4, 5, 12, 16, 18, 22, 50, 55, 59, 71, and 74 on the examination. During the course of the hearing, he limited his challenge to questions 5, 16, 18, 50, 71, and 74. Other than his own testimony, petitioner offered no evidence to show that his answer to the above questions were the most correct. Indeed, uncontroverted expert testimony clearly established that petitioner's answers were incorrect, that the challenged questions were drawn from the authorized reference books, and were not "unclear" and "ambiguous" as petitioner contended.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED that no change be made to petitioner's grade on the real estate broker's examination. DONE and ORDERED this 12th day of March, 1985, 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 March, 1985. COPIES FURNISHED: Mr. Jules Lipp 5300 N.W. 77th Court Miami, Florida 33166 Drucilla E. Bell, Esquire 130 North Monroe Street Tallahassee, Florida 32301
The Issue The issue in this case is whether the Respondent, German H. Rodriguez, committed the violation alleged in the administrative complaint; and, if so, what penalty should be imposed.
Findings Of Fact Petitioner is the state agency charged with the responsibility of regulating and disciplining real estate licensees in the State of Florida. At all times material to the allegations of this case, Respondent has been licensed as a real estate broker, license number 0434907. On March 20, 1995, Respondent submitted a license renewal form to the Petitioner which resulted in the automatic issuance of a renewed license for two years, ending March 31, 1997. The license renewal form provided, in pertinent part: I hereby affirm that I have met all of the requirements for license renewal set forth by the Department of Business and Professional Regulation and/or the professional regulatory board indicated on the reverse side of this notice. I understand that, within the upcoming licensure period, if my license number is selected for audit by the Department and/or professional regulatory board, I may be required to submit proof that I have met all applicable license renewal requirements. I understand that proof may be required by the Department of Business and Professional Regulation and/or professional regulatory board at any time and that it is my responsibility to maintain all documentation supporting my affirmation of eligibility for license renewal. I further understand that failure to comply with such requirements is in violation of the rules and statutes governing my profession and subjects me to possible disciplinary action and, further, that any false statements herein is in violation of section 455.227 Florida Statutes, subjecting me to disciplinary action as well as those penalties provided below. I affirm that these statements are true and correct and recognize that providing false information may result in disciplinary action on my license and/or criminal prosecution as provided in section 455.2275, Florida Statutes. When Respondent executed the renewal form he did not have documentation supporting his eligibility for license renewal. Specifically, Respondent did not have a course report documenting completion of the required 14 hour continuing education course. The course report that Respondent later received from an approved real estate school noted that Respondent had started the course June 1, 1995, and had finished it June 26, 1995. Respondent knew that the 14 hour continuing education course was required by the Department for license renewal. Further, Respondent knew that the course was to be completed before the renewal came due. Respondent maintains that he intended to complete the course before the renewal because he had, in fact, requested a correspondence course from an approved real estate school, had completed the course work, and had filled out the answer sheet. Unfortunately, according to Respondent, the envelope was misplaced and he failed to timely mail the answer form to the company for scoring. Therefore, Respondent did not get credit for the work until June, 1995, when he completed the work again. As chance would have it, Respondent was selected for audit in August, 1995. By this time he had completed the continuing education course work as required by the Department for license renewal but, as indicated above, did so after the renewal form had been submitted. In response to the audit, Respondent represented that he had completed the work prior to renewal but, through inadvertence, had not gotten the course credit until after the renewal period. Respondent did not successfully complete 14 hours of continuing education prior to submitting the renewal form. Respondent has been a licensed real estate broker for ten years during which time he has never been disciplined. At the time of the renewal, Respondent was not using his real estate license and was in an inactive status.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Florida Real Estate Commission enter a final order finding Respondent violated Section 475.25(1)(m), Florida Statutes, and imposing a reprimand with an administrative fine in the amount of $1,000.00. DONE AND ENTERED this 9th day of April, 1997, in Tallahassee, Florida. J. D. PARRISH Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (904) 488-9675 SUNCOM 278-9675 Fax Filing (904) 921-6847 Filed with the Clerk of the Division of Administrative Hearings this 9th day of April, 1997. COPIES FURNISHED: Henry M. Solares Division Director Division of Real Estate 400 West Robinson Street Orlando, Florida 32802-1900 Lynda L. Goodgame General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 Christine M. Ryall, Esquire Department of Business and Professional Regulation Division of Real Estate 400 West Robinson Street Tallahassee, Florida 32802 Frederick H. Wilsen, Esquire Gillis & Wilsen 1415 East Robinson Street, Suite B Orlando, Florida 32801 German H. Rodriguez 703 Southwest 89th Avenue Plantation, Florida 33324
The Issue Should the Florida Real Estate Appraisal Board (the Board) take action against Respondent, a licensed real estate appraiser (appraiser), for violations set forth in Chapter 475, Part II, Florida Statutes (1995)?
Findings Of Fact Stipulated Facts: Respondent is a state-licensed appraiser. On or about January 9, 1997, Respondent, Fred Catchpole, and Rhonda Guy developed and communicated an appraisal report for property commonly known as 693 Broad Street, Pensacola, Florida 32819. In developing the subject property appraisal report, the Cost Approach and the Sales Comparison Approach were utilized. Additional Facts: Eventually the circumstances concerning the Uniform Residential Appraisal Report (the Report) at the 693 Broad Street, Pensacola, Florida, property (the Property) came to Petitioner's attention upon a complaint. On February 13, 2001, the complaint was made. The complaint was made by Daniel Alvin Ryland, a Florida-licensed appraiser who has provided appraisal services in Escambia and Santa Rosa counties in Florida. The investigation of the complaint covered the period February 20, 2001, through December 26, 2001. Benjamin F. Clanton was the principal investigator. At present, he is an investigator supervisor for Petitioner. He has held that position since 2002. Mr. Clanton started investigating appraisal cases in 1995, when he retired from the Birmingham Police Department in Birmingham, Alabama. In that year, he was employed by the Alabama Real Estate Appraisal Board. While there, he took three courses: the Appraisal of Real Estate, a 45-hour course; the Basic How to Appraise, a 25-hour course; and Uniform Standards of Professional Appraisal Practices (USPAP), a 16-hour course. He took an update in USPAP in 1997, a four-hour course. Mr. Clanton continued with Appraisal Institute courses or courses involving appraisal principles and procedures, basic income capitalization, residential case studies and a national USPAP course and other updates. As part of the investigation, Mr. Clanton interviewed Respondent Harrison. Mr. Clanton sought documentation from the Respondent in the interest of the recreation of the Cost Approach in the Report. Mr. Clanton asked for the work files supporting the Report. Respondent provided work files. Discrete information concerning recreation of the Cost Approach was not received by Mr. Clanton. From his observations related to the Cost Approach within the Report, Mr. Clanton describes problems with the calculations of the Cost Approach where the stated effective age in the comments on the Cost Approach was 25 years. That calculated to be significantly different, in his understanding, than the number used in the depreciation in the Cost Approach. The Report reflected a remaining economic life of 35 years and a total life expectancy of 60 years. He refers to the Report's statement of the effective age of the Property as 15 years. In his testimony, Mr. Clanton describes the age life depreciation method leading to establishment of the effective age but he was never qualified as an expert to allow consideration of the testimony on the age life depreciation method or other issues related to the Cost Approach. Therefore, no further facts are found on that topic. When interviewed by Mr. Clanton, Respondent Catchpole in DOAH Case No. 06-3389PL acknowledged that there were errors in the Cost Approach formulations attributed to Respondent Harrison. The nature of any errors was not explained. Without that explanation they become inconsequential. More particularly, the Property neighborhood is slightly north of Interstate 10 in Pensacola, Florida, west of Pine Forrest Road, to the west side of Highway 29, and south of Alternate 90. The Property is located in what is referred to as the Ensley area. The Property is one of the largest residences in the Ensley area, in particular in Ensley Gardens. Immediately off of Highway 29 are rows of commercial buildings. Behind those rows is a railroad track. The Property is about 200 feet from the railroad track. An Escambia County utilities substation, pumping station, is located north of the Property. The Escambia County public utilities facility is about 200 feet from the Property. The Property is located north of Broad Street. The Property is on a large lot. Homes across from the Property on Broad Street are located on smaller lots. The property is not in a Planned Unit Development (PUD). The area of the subject property is not homogenous, in that the homes vary widely in quality, design, age and size. By choice of the appraiser, the Sales Comparison Approach was used in determining the appraisal for the Property. There were three comparable sales. At the time the Report was written the Property was 27 years old. Comparable sale one was two years old. Comparable sale two was 12 years old. Comparable sale three was 9 years old. The Property site was 120 feet by 260 feet according to the Report. This was larger than the comparable sales sites. Respondent, in providing information from the work file related to the Report, included information from a Multiple Listing Service (MLS) for January 1997 from the Pensacola Association of Realtors. In reference to comparable sale one, the MLS refers to the location as Creekside Oaks Subdivision, a luxury home under construction and a Parade Home entry. It refers to a sprinkler system, pantry, cathedral ceilings, security alarm, two+ closets in the master bedroom, separate shower in the master bedroom, an open patio, laundry/utility room, on a golf course, with a two-car garage. It has a whirlpool for the master bedroom bath. It has double pane glass. In relation to comparable sale two, the MLS refers to soaring cathedral ceilings with a fireplace in living room and screen porch, a hot tub and gorgeous yard with pool. The pool is described as an in-ground pool. There is a reference to a unique atrium, an inside laundry, walk-in closets, sprinkler systems, laundry/utility room and security alarm. The MLS pertaining to comparable sale three refers to the Kings Road Subdivision in Cantonment, whereas the Report refers to the location as Pensacola. In relation to comparable sale three on Kings Road in Cantonment, that neighborhood has deed restrictions limiting the type of homes and the size of homes. It has a public sewer. It has underground utilities. It has a concrete curb and gutter. The house is described as having a fireplace, sprinkler system, screen porch, high ceilings, security alarm, two-car garage, with a garden tub in the master bath. It refers to a laundry inside. There is a pool. The Report in the section under the Comparable Sales Approach, under the sales comparison analysis that refers to design and appeal described the Property and the comparables as ranch/average. The Property and the comparable sales properties were all described as suburban-average as to location. The sites were described as average for the Property and inferior for the comparables with a $3000 positive adjustment in each comparable sale to compensate for the difference. The Property did not have a pool. Two of the comparable sales had pools. Mr. Clanton asked the Respondent to provide him with a second appraisal report on the Property. Respondent agreed to provide it and mailed it to Mr. Clanton. A second appraisal report was not received by Mr. Clanton. Nothing more is known about a second appraisal report. In the appraiser certification signed by Respondent as appraiser and signed by Respondent Catchpole, DOAH Case No. 06- 3389PL, as supervisory appraiser, under item 8 it was stated: "I have personally inspected the interior and exterior areas of the subject property . . . ." Within item 8 to the appraisers certification, it went on to say that there was a personal inspection of " . . . the exterior of all properties listed as comparables in the appraisal report " Respondent in this case did not inspect the interior of the Property as part of the appraisal, by contrast to an awareness of the exterior. Respondent Catchpole, DOAH Case No. 06-3389PL, served as the supervisory appraiser and as such did not inspect the Property in any respect. Respondent Fred R. Catchpole, DOAH Case No. 06-3389PL, reviewed comparable property data in relation to the sales comparison analysis but was not involved in the selection process in choosing comparable sales. The form used in preparing the Report is referred to variously as Freddie Mac Form 70 6/93 and Fannie Mae Form 1004 6/93. In the Report in the section involving subject matter, Fred and Juanita Hicks were listed as borrowers and the current owner of the Property. The property rights being appraised were under the heading "fee simple." There was a reference to a lender/client as Home Star Mortgage Lending. The results of the Report did not lead to any direct harm to a consumer, in particular, the listed borrowers, Fred and Juanita Hicks.
Recommendation Upon consideration of the facts found and the conclusions of law reached, it is RECOMMENDED: That a final order be entered dismissing the Administrative Complaint against Respondent. DONE AND ENTERED this 30th day of May, 2007, in Tallahassee, Leon County, Florida. S CHARLES C. ADAMS 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 30th day of May, 2007.
