DIVISION OF REAL ESTATE Bureau of Enforcement

License Efficiently Regulate Fairly

3613

COMPLAINTS Fiscal Year 2016-2017 Fiscal Year 2015-2016 Real Estate = 3751 Appraisal =206 Unlicensed = 690 Total = 3957 Fiscal Year 2016-2017 Real Estate = 3470 Appraisal = 143 Unlicensed = 732 Total = 3613

Disciplinary Proceedings Section 455.225(1)(a) Florida Statutes The department shall cause to be investigated any complaint that is filed before it if the complaint is: Written Complaint Signed by the Complainant Legally Sufficient

A complaint is legally sufficient if it contains ultimate facts that show that a violation of this chapter, of any of the practice acts relating to the professions regulated by the department, or of any rule adopted by the department or a regulatory board in the department has occurred. In order to determine legal sufficiency, the department may require supporting information or documentation.

Anonymous Complaints The department may investigate if: Written Complaint Legally Sufficient Substantial Reason to believe allegations are true

Investigation Gather all pertinent facts Research records Interview involved parties Audit bank accounts Written report

Failure to Self-Report Advertising Salesperson Operating as a Broker Criminal Conviction Failure to Self-Report Advertising Salesperson Operating as a Broker Escrow

61J2-10.025 Reasonable person would know they are dealing with a licensee Must include the name of the brokerage firm Must not be false, misleading or deceptive If name used, must include at least the last name Internet advertisement to include brokerage name adjacent to or immediately above or below contact information

Sales Associate No funds in their own name Turn over funds to their broker by close of next business day Failure to identify escrow agent (name, address and telephone number)

Broker Deposit within 3 days Perform Escrow Verification Reconcile Escrow Account Shortages Overages Failure to properly reconcile escrow account

Audits and Inspections

61J2-14.012(2) Once monthly, a broker shall cause to be made a written statement comparing the broker’s trust liability with the reconciled bank balances of all trust accounts.

Reconciliation Minimum Information Date reconciliation undertaken Date used for reconciliation Name of bank Name of account Account number Account balance Deposits in transit Outstanding checks by date and number Itemized list of broker’s trust liability Other items necessary to reconcile the account Explanation for differences between trust liability and bank balance required Corrective action Broker’s certificate of review and signature

A $100 B $100 C $100 Net Balance = $300 Liability = $300

A $100 B -$100 C $100 Net Balance = $100 Liability = $200

What if violations are found? Notice of Non Compliance Failure to sign reconciliation when account balances Failure to indicate the name or address of the escrow agent Failure to perform escrow verification responsibilities Failure to stop interest from accruing

Citations Failure to maintain office - $500 Failure to maintain sign - $100 Failure to immediately deposit trust funds (not more than 3 days late) - $200 Advertisement issues - $500 2nd Offense failure to indicate escrow agent on contract - $200 2nd Offense failure to perform escrow verification - $200 Failure to properly reconcile escrow account when account balances - $500

Shortages Overages