March 2009

In This Issue:

• Message From The Secretary
• Message From The Chairperson
• Message from the Director
• Some Common Mistakes
• eNewsroom

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Message From The Secretary

With this economic downturn, many of us find ourselves struggling to use existing resources more frugally and to cut costs wherever possible.  This renewed focus on fiscal responsibility is happening across the board—at state agencies, in Florida’s business and professional community and even in our own homes.  At DBPR, we are focusing on cutting costs through increased efficiency.

Recently, we have targeted areas where we can increase efficiency for the department and for our licensees.  I would like to share some examples of our efforts with you. 

• We have reduced the time required to process exam scores for CPAs by more than half.  The National Association of State Boards of Accountancy is now transmitting scores as frequently as eight times per exam window, which is a three-month period. DBPR will now be able to provide eligible applicants with licensure packages more quickly, in approximately 30 days.

• We have removed the requirement that applicants submit corporate documents.  Before this change, documents from the Department of State had to be submitted by the licensee. Now, DBPR mines the documents directly from the Department of State system, thus reducing deficiencies and processing licenses faster.

• We have implemented computer-based testing for Farm Labor.  The Farm Labor Contractor registration examination, previously administered through the pencil and paper, is now offered via computer at multiple sites throughout the state.

A few months ago I sent a letter to all of our board chairs asking them to be mindful of the current budget times and to help us look for ways to save our licensees money and increase efficiency.  Many of our boards and licensees have risen to this challenge. 

Recently, the chair of the Board of Veterinary Medicine, Dr. Bob O’Neil, suggested that the board decline their statutorily authorized $50 daily board compensation.  The board agreed, and I would like to commend them on their dedication to public service.  In addition, our licensees, the Biscayne Bay Pilots Association, withdrew their application for a rate increase citing the distressed state of the economy and the possible impact to fellow stakeholders at the Port of Miami. 

It is inspiring to see what we can accomplish when we join together with a common purpose.  As we work through these tough times, I am confident we will be able to weather the storm with the support of one another.  I will continue to keep you informed about what the department and our partners are doing to support you.  You can find more information about our efforts by visiting MyFloridaLicense.com/dbpr/Accelerate_Florida.  I look forward to sharing our successes with you.

Sincerely,
Charles W. Drago
Secretary

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Message from the Chairperson Ralph McCoig

My name is Ralph McCoig, and I am honored to serve asChairperson of the Florida Real Estate Commission. I wish to publicly thank Commissioner S.W. Ellis for the hard work and leadership she provided to this Commission during her term as Chairperson and to congratulate Commissioner Roger Enzor for being elected as Vice Chairperson. Additionally, I want to recognize the dedication and enormous contribution that all the members of the Florida Real Estate Commission (FREC) provide to Florida's real estate industry.

According to FS 475.02 (1), four members of FREC must be licensed Florida real estate brokers, each of whom has held an active license for the five years preceding appointment; those present members are Ms. S.W. Ellis (real estate broker and immediate past Chair); Mr. Poul Hornsleth (real estate broker and past Chair); Mr. Roger Enzor (real estate broker and present Vice Chair); and Mr. Ralph McCoig (real estate broker and present Chair). One member must be a licensed broker or a licensed sales associate who has held an active license for the two years preceding appointment, that member is Mr. Richard DeNapoli, (real estate broker and Attorney). Two members of FREC must be persons who are not, and have never been, real estate brokers or sales associates; those members are Mr. Michael Guju (Attorney) and Mr. John Ruffier (Attorney). Together, these individuals represent over one hundred years of combined service to and expertise of the real estate profession.

As Commissioners, we are charged with the responsibility and duty of implementing and enforcing Florida Statue 475, Florida Statue 455, Florida Administrative Code 61J2 and periodically enacting bylaws and other rulings that will be of a benefit to licensees as well as consumers. These tasks are accomplished during public meetings held on the third Tuesday and Wednesday of each month.

Attendance at FREC monthly meetings is for one of five reasons. First, one may be an attorney, a friend, or a relative speaking on behalf of a Respondent or prospective Licensee. Second; one may be attending as part of a disciplinary requirement in which credit for attendance will be obtained provided all conditions as set forth in Florida Administrative Code 61J2 are satisfied. Third; one may be a Respondent in which a complaint against a Licensee was filed with the Division of Real Estate. An Investigative procedure was conducted and the results were reviewed by a Probable Cause Committee which recommended that the case be presented to the Florida Real Estate Commission. The Respondent will be provided an opportunity to present mitigation pertaining to his or her actions as stated in the administrative complaint. Fourth, one may be a prospective real estate broker or sales associate and the required Florida Department of Law Enforcement report or the Federal Bureau of Investigation report revealed illegal or unethical behavior. An opportunity to fully explain that activity and provide any mitigating circumstances is provided to the respective licensee. Lastly, one may be attending to gain a better understanding of the real estate profession and, if a real estate licensee, may receive continuing education credits for attendance.

As Commissioners, we understand the importance to you and your business to continue to maintain and defend the integrity of Florida’s real estate profession. By upholding the legislation and rulings of our state, FREC will ensure the credibility of the Florida real estate profession, the trust between our licensees and the public, and the future viability of our state as one of the largest areas for homeownership and economic development in America.

On behalf of all the Commissioners, it is indeed our honor and privilege to serve you and to perform our utmost to enhance Florida’s real estate industry.

Cordially,

Ralph McCoig
Chairperson Florida Real Estate Commission

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Message from the Director Thomas O’Bryant

British statesman Benjamin Disraeli stated, “As a rule, he who has the most information will have the greatest success.” Upon this premise I would encourage you to look at the myriad of information that is available to you at the following Department of Business and Professional Regulation links:

 www.myfloridalicense.com – Do you know the status of your license? This is the Web site where you can find out important information regarding your license, renew your license and make many of the necessary changes to your license as required by license law.

http://www.myfloridalicense.com/dbpr/re/faq.html - We answer questions every day regarding license law, renewals and continuing education. Based on the most frequently asked questions the Division of Real Estate has developed FAQs to assist you in finding the answers. This link will take you to the FAQ page which will provide you with a plethora of information.

http://www.myfloridalicense.com/dbpr/re/FRECDARs.html - Do you want to educate yourself on staying out of trouble? This is the link on the FREC disciplinary actions taken over the last few years.

Finally, great information can be gleaned from your attendance at a FREC meeting. Not only are these meetings a great learning opportunity, but also you can earn continuing education credit. If you would like to attend a FREC meeting to receive continuing education, you are required to advise the Division of Real Estate seven days in advance of the of the meeting.

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Some Common Mistakes for Real Estate Sales Associates and Brokers to Avoid

There are some violations of the license law that come before the FREC on a very frequent basis.  I will outline some of them here:

Practice without a Valid and Current License.  475.42(1)(a), F.S.; 475.42(1)(c), F.S.; Rule 61J2-5.019, F.A.C.  Brokers, especially in the current economic environment, must be careful to ensure that their sales associates have registrations and licenses that are current.  It is as simple as doing a regular check at www.myfloridalicense.com.  The usual action of the Commission for practice without a valid and current license is to impose an administrative fine not to exceed $5,000 and a three year suspension to revocation.  For brokers employing sales associates who are not holders of a valid and current license, the usual action of the Commission is to impose an administrative fine not to exceed $5,000 and a 90-day to two year suspension.

Failure to Account and Deliver for Sales Associates. 475.25(1)(d)(1), F.S.; 61J2-14.009.  For Real Estate Sales Associates, this is perhaps the most common violation.  It usually is discovered during the course of investigating a complaint.  Every sales associate who receives any deposit, as defined in Rule 61J2-14.008, Florida Administrative Code, shall deliver the same to the broker or employer no later than the end of the next business day following receipt of the item to be deposited. Saturday, Sundays and legal holidays shall not be construed as business days. Receipt by a sales associate or any other representative of the brokerage firm constitutes receipt by the broker for purposes of paragraph 61J2-14.008(1)(d), Florida Administrative Code.  The usual action of the Commission for failure to account and deliver is to impose an administrative fine not to exceed $5,000 and up to a five year suspension.

Failure to Account and Deliver for Brokers.  475.25(1)(d), F.S. 61J2-10.032, F.A.C.  Conflicting demands on escrow deposits has become a frequent situation in today’s real estate market.  The Florida Statutes and Code are quite complicated here, and should be reviewed carefully.  If the licensee, in good faith, entertains doubt as to what person is entitled to the accounting and delivery of the escrowed property, or if conflicting demands have been made upon the licensee for the escrowed funds in her or his escrow or trust account, the licensee shall notify the commission within 15 days of such doubts or conflicting demands and shall within 30 days after the last demand or after having such doubt:

• Request that the commission issue an escrow disbursement order determining who is entitled to the escrowed property;
• With the consent of all parties, submit the matter to arbitration;
• By interpleader or otherwise, seek adjudication of the matter by a court (oftentimes, brokers employ attorneys to handle this for them); OR
• With the written consent of all parties, submit the matter to mediation. Review the F.A.C. for more info on this option.

If the licensee employs one of the options above within the proper timeframes and abides by the resulting order or judgment, no administrative complaint may be filed against the licensee for failure to account for, deliver, or maintain the escrowed property.

For violations for failure to account or deliver, it is the usual action of the Commission to impose an administrative fine not to exceed $5,000 and up to a 5 year suspension.

I hope this short recitation of a couple of the most common mistakes that Realtors make can help everyone to avoid having to make an appearance at our next meeting.  In the current economic situation, an administrative fine is the last thing a Realtor needs.  Good luck in business and in life.

All the best,

Richard DeNapoli
Florida Real Estate Commissioner

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e Newsroom

Check out DBPR's eNewsroom, your source for important Department news and information. Here, you can watch public service announcements, read news releases, and subscribe to and flip through our publications.

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