Violations And Penalties
VIOLATIONS AND PENALTIES
FREC authority
Violations and penalties
Penalties issued by court of law
FREC authority The Commission has the authority to set guidelines for penalties to be imposed on a licensee who violates Florida’s real estate laws, specifically Chapter 455 and Chapter 475, as well as the FREC Administrative Code. Because the Commission’s jurisdiction is limited to the practice of real estate in Florida, it may only impose administrative penalties related to that practice. Criminal and Section 6: Violations of License Law, Penalties and Procedures to Real Estate 121
civil penalties must come from the courts. Restitution to an injured party is a civil matter and, therefore, cannot be granted by the FREC.
The FREC is authorized to carry out the following actions:
deny a license application Grounds for application or licensure denial include errors on the application, failure to meet the application or licensure qualifications, failure to pay applicable fees, lack of required character, acts that would warrant suspension or revocation of a license, caught cheating on the licensure examination.
refuse to renew a license Grounds for refusing to renew an existing license are much the same as those for denying the license application
reprimand Similar to a notice of noncompliance, a letter of reprimand may be issued to a licensee who has violated real estate law or code.
issue notice of noncompliance As established by the Commission, violations of certain statutes and rules are considered minor violations These laws are those that do not result in economic or physical harm or negatively affect the health, safety, or welfare of the public or create a threat of harm. First-time violators of these laws can receive a notice of noncompliance that identifies the law violated and contains instructions on how and by when to correct the violation. The law gives these violators 14-days to correct the violation. Failure to correct the violation can result in the licensee receiving a citation or being further disciplined. Administrative Code 61J2-24.003 contains the list of these statutes and rules and can be found online at http://www.myfloridalicense.com/DBPR/servop/testing/documents/Printable_LawBook.pdf
impose an administrative fine Fines range from $100 to $5,000 per violation for certain violations.
122 Principles of Real Estate Practice in Florida
impose probation In addition to other disciplinary penalties, the Commission may place a licensee on probation. The Commission will designate the time period and conditions it deems appropriate. Standard probationary conditions may include requiring the licensee to complete a prelicense or postlicense course, to successfully complete the state-administered examination, and/or to be periodically interviewed by a DBPR investigator. Brokers on probation may have their licenses placed on a broker associate status or be required to file escrow account status reports with the Commission or with a DBPR investigator at prescribed intervals.
issue citations Citations are issued for specific violations that do not pose a substantial threat to the public health, safety, and welfare. DBPR investigators and FREC may issue a maximum citation of $500. Citations must be paid or disputed within 30 days. If disputed, the matter will be forwarded for a formal hearing before an administrative law judge.
suspend a license Based on disciplinary guidelines and associated penalties, a license may be suspended for law and code violations for up to 10 years.
revoke a license Based on disciplinary guidelines and associated penalties, this penalty is intended to permanently remove the violator from the practice of real estate; however, further language in the law states that the FREC may approve an application from a previously revoked licensee if “because of lapse of time and subsequent good conduct and reputation, or other reason deemed sufficient, it appears to the commission that the interest of the public and investors will not likely be endangered.” Regardless of this language in the law, the FREC maintains its policy not to license previously revoked licensees.
revoke without prejudice If the license was issued by mistake or inadvertence of the Commission, it can be revoked or canceled without prejudicing a later application by the same individual.
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mediation Violations that are economic in nature and involve disputes are subject to being referred to mediation for resolution. Such violations include: a broker’s failure to maintain an office or entrance sign, failure to register a branch office, and failure to pay a licensee the amount of commission designated in a civil judgment.
Violations and
penalties Florida Administrative Code contains an exhaustive list of actions that constitute real estate law violations and the penalties for first and subsequent violations. The list may be found online at
http://www.myfloridalicense.com/DBPR/servop/testing/documents/Printable_LawBook.pdf.
| The following are examples of violations and associated penalties from that list. Violation | First Violation | Subsequent Violations |
| Fraud, misrepresentation, and dishonest dealing | administrative fine and 30-day suspension to revocation | administrative fine and 6-month suspension to revocation |
| False, deceptive or misleading advertising | administrative fine and 30 to 90-day suspension | administrative fine and 90-day suspension to revocation |
| Culpable negligence or breach of trust | administrative fine and 30-day suspension to revocation | administrative fine and 6-month suspension to revocation |
| Failure, as a broker, to deposit any money in an escrow account immediately upon receipt until disbursement is properly authorized;. as a sales associate, to place any money to be escrowed with his registered employer | administrative fine and 30-day suspension to revocation | administrative fine and suspension to revocation |
| Failure to report in writing to the Commission within 30 days after the licensee is convicted or found guilty of, or entered a plea of nolo contendere or guilty to, regardless of adjudication, a crime in any jurisdiction. | administrative fine and suspension to revocation | administrative fine and suspension to revocation |
| Collection, by a sales associate, of any money in | administrative fine and suspension to revocation | administrative fine and suspension to revocation |
