Rule 61B-41.003. Penalty Guidelines

The following penalty guidelines are established for each violation: |STATUTE/RULE |GENERAL DESCRIPTION |PENALTY per violation | | | |(Priors) | |PART I VACATION PLANS AND TIMESHARING | | | |Section 721.056, F.S.; |Developer’s supervisory duties |2,500(0), 3,500(1) | |Rule Chapters 61B-37; 61B-39; 61B-40, F.A.C. | |5,000(1+) | |Section 721.06, F.S.; |Purchase contracts |$2,500(0) | |Rules 61B-39.002; 61B-39.003; | |$3,500(1) | |61B-39.007, F.A.C. | |$5,000(1+) | |Section 721.06(4), F.S. |One to one ratio |$5,000 | |Section 721.065, F.S.; |Resale purchase contract |$1,000(0) | |Rule 61B-39.002, F.A.C. | |$2,000(1) | | | |$3,500(1+) | |Section 721.07, F.S. |Public offering statement rejection/revocation |$5,000/POS- | | |Use of unapproved |$5,000(0) | | |Public Offering Statement |$10,000(1+) | |Section 721.07(6), F.S. |Failure to deliver |$10,000 | |Section 721.07(5), F.S. |contents, maintenance |$2,500 | |Rules 61B-39.002; 61B-39.003; |POS-rejection/revocation | | |61B-39.004; 61B-39.007; 61B-39.008; 61B-40.003; 61B-40.004; 61B-40.006; | | | |61B-40.0061; 61B-40.0062, F.A.C. | | | |Section 721.075, F.S.; |Incidental benefits |$1,000(0) | |Paragraph 61B-39.007(6)(e), F.A.C. | |$2,000(1) | | | |$3,000(1+) | |Section 721.08, F.S.; Paragraphs |Escrow accounts; nondisturbance instruments; alternate |$5,000(0) | |61B-39.003(4)(c); 61B-39.005(5)(c); 61B-39.007(6)(e), F.A.C. |security arrangements |$7,500(1) | | | |$10,000(1+) | |Section 721.09, F.S. |Reservation agreements; escrows |$1,000(0) | | | |$2,000(1) | | | |$5,000(1+) | |Section 721.10, F.S. |Cancellation; termination |$5,000 | | | |$7,500 | | | |$10,000 | |Section 721.11(1), (5), F.S.; |Advertising materials and disclosures |$3,500(0) | |Subsection 61B-37.004(3), F.A.C. | |$5,000(1) | | | |$10,000(1+) | |Section 721.11(4), F.S.; |Misrepresentations; inducements; referrals |$2,500(0) | |Rule 61B-37.002, F.A.C. | |$5,000(1) | | | |$10,000(1+) | |Section 721.111, F.S.; |Promotional offers |$3,500(0) | |Rule 61B-37.004, F.A.C. | |$5,000(1) | | | |$10,000(1+) | |Section 721.12, F.S. |Sellers’ record keeping |$1,000(0) | | | |$2,000(1) | | | |$5,000(1+) | |Section 721.13, F.S.; Rules 61B-40.003; 61B-40.004; 61B-40.005; |Management; CAM license; books & records; lockout; quorum |$1,000(0) | |61B-40.006, F.A.C. | |$2,000(1) | | | |$5,000(1+) | |Rule 61B-40.0061, F.A.C. |Reserve funding |$2,000(0) | | | |$3,500(1) | | | |$5,000(1+) | |Section 721.13(2)(a), F.S.; and |Fiduciary Duty as separate and distinct from other violations|$10,000 | |Rule 61B-40.004, F.A.C. | | | |Section 721.13(3)(e), F.S.; and |Annual audit failure to arrange failure to file |$2,500(0) | |Rule 61B-40.007, F.A.C. | |$3,500(1) | | | |$5,000(1+) | | | |$2,500(0) | | | |$3,500(1) | | | |$5,000(1+) | |Section 721.13(3)(f), F.S. |Inspection of books |$2,500 | | |Receipts and disbursements |$1,000(0) | | | |$1,500(1) | | | |$2,000(1+) | |Sections 721.13(3)(i) and 192.037(6)(e), 721.15, F.S.; Rules 61B-40.004; |Assessments; guarantees, common expenses; billing |$1,000 (0) | |61B-40.005; 61B-40.006; 61B-40.0061; 61B-40.0062, F.A.C. | |$2,000 (1) | | | |$5,000 (1+) | | |Failure to pay Assessments on Developer owned units |$10,000 | |Section 721.15(8), F.S. |Commingling |$5,000 | |Section 721.165, F.S.; |Insurance disclosure |$10,000 | |Paragraph 61B-39.007(6)(f), F.A.C. | |$1,000 | |Section 721.17, F.S. |Transfer of interest |$5,000 | |Section 721.18(1), F.S. |Exchange programs |$5,000(0) | | |Failure to provide written documents |$10,000(1+) | |Section 721.18(5), F.S. |Unfair deceptive act or practice |$5,000(0) | | | |$10,000(1+) | |Section 721.20(1), F.S. |Broker licensing |$5,000 | |Section 721.20(2), F.S.; |Solicitor licensing |$10,000 | |Section 721.20(4), F.S. |Advance fees | | |Section 721.26(7)(a), F.S. |Exchange Company Deceptive act or practice |$5,000(0) | | | |$10,000(1+) | |Section 721.27, F.S. |Managing entity fees to statutory late fee |$1,000 in addition | |PART II VACATION CLUBS | | | |Section 721.53, F.S.; |Subordination instruments |$10,000 | |Rule 61B-39.003, F.A.C. | | | |Subsection 61B-39.005(7), F.A.C. |Security arrangements |$3,000(0) | | | |$5,000(1) | | | |$10,000(1+) | |Section 721.54, F.S. |Multisite term |$5,000 | |Section 721.55, F.S. |Public Offering Statement |$5,000/POS | | |rejection/revocation |$5,000(0) | | |Use of unapproved |$10,000(1+) | |Section 721.55, F.S.; Rules 61B-39.002; 61B-39.005; 61B-39.007; |Public offering statement contents, maintenance |$5,000 | |61B-39.008, F.A.C. | | | |Section 721.551, F.S.; Rules 61B-39.002; 61B-39.006; 61B-39.007; |Failure to deliver public offering statement |$10,000 | |61B-39.008, F.A.C. | | | |Section 721.552, F.S.; |Change in component site accommodations & facilities |$5,000 | |Subsection 61B-39.007(9), F.A.C. | | | |Sections 721.552(1)(b), (2)(g), F.S. |Fiduciary duty |$10,000 | |Section 721.553, F.S. |Portrayal of component sites |$1,000(0) | | | |$2,000(1) | | | |$5,000(1+) | |Rule 61B-37.002, F.A.C. |misrepresentations |$2,500(0) | | | |$3,500(1) | | | |$5,000(1+) | |Sections 721.56(1), (2), F.S.; |Management rejection/revocation |$5,000/POS- | |Paragraph 61B-39.005(5)(e), F.A.C. | | | |Section 721.56(3), F.S.; |Escrow accounts |$3,000(0) | | | |$5,000(1) | | | |$10,000(1+) | |Paragraph 61B-39.007(6)(e), F.A.C. |amendment disclosures |$1,000 | |Section 721.56(5), F.S.; |Reservation system |$5,000 | |Subsection 61B-39.005(7), F.A.C. |filing |$2,500 | |Section 721.56(6); |Developer duties |$10,000 | |Subsection 61B-39.005(7), F.A.C. |filing |$2,500 | |Section 721.57, F.S. |Multisite disclosures |$5,000 | |Section 721.58(1), F.S. |Filing fee |rejection | |Section 721.58(2), F.S. |Managing entity fees to statutory late fees |$1,000 in addition | NOTE: The designation of (0) means no prior violations; (1) means one prior violation; and (1+) means more than one prior violation. Rulemaking Authority 721.26(6) FS. Law Implemented 721.26(5)(e) FS. History–New 2-4-98, Amended 10-12-17.