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.; Rule Chapters 61B-37; 61B-39; 61B-40, F.A.C. Developer’s supervisory duties 2,500(0), 3,500(1) 5,000(1+) Section 721.06, F.S.; Rules 61B-39.002; 61B-39.003; 61B-39.007, F.A.C. Purchase contracts $2,500(0) $3,500(1) $5,000(1+) Section 721.06(4), F.S. One to one ratio $5,000 Section 721.065, F.S.; Rule 61B-39.002, F.A.C. Resale purchase contract $1,000(0) $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; 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. POS-rejection/revocation Section 721.075, F.S.; Paragraph 61B-39.007(6)(e), F.A.C. Incidental benefits $1,000(0) $2,000(1) $3,000(1+) Section 721.08, F.S.; Paragraphs 61B-39.003(4)(c); 61B-39.005(5)(c); 61B-39.007(6)(e), F.A.C. Escrow accounts; nondisturbance instruments; alternate security arrangements $5,000(0) $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.; Subsection 61B-37.004(3), F.A.C. Advertising materials and disclosures $3,500(0) $5,000(1) $10,000(1+) Section 721.11(4), F.S.; Rule 61B-37.002, F.A.C. Misrepresentations; inducements; referrals $2,500(0) $5,000(1) $10,000(1+) Section 721.111, F.S.; Rule 61B-37.004, F.A.C. Promotional offers $3,500(0) $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; 61B-40.006, F.A.C. Management; CAM license; books & records; lockout; quorum $1,000(0) $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 Rule 61B-40.004, F.A.C. Fiduciary Duty as separate and distinct from other violations $10,000 Section 721.13(3)(e), F.S.; and Rule 61B-40.007, F.A.C. Annual audit failure to arrange failure to file $2,500(0) $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; 61B-40.005; 61B-40.006; 61B-40.0061; 61B-40.0062, F.A.C. Assessments; guarantees, common expenses; billing $1,000 (0) $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.; Paragraph 61B-39.007(6)(f), F.A.C. Insurance disclosure $10,000 $1,000 Section 721.17, F.S. Transfer of interest $5,000 Section 721.18(1), F.S. Exchange programs Failure to provide written documents $5,000(0) $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.; Section 721.20(4), F.S. Solicitor licensing Advance fees $10,000 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.; Rule 61B-39.003, F.A.C. Subordination instruments $10,000 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 rejection/revocation Use of unapproved $5,000/POS $5,000(0) $10,000(1+) Section 721.55, F.S.; Rules 61B-39.002; 61B-39.005; 61B-39.007; 61B-39.008, F.A.C. Public offering statement contents, maintenance $5,000 Section 721.551, F.S.; Rules 61B-39.002; 61B-39.006; 61B-39.007; 61B-39.008, F.A.C. Failure to deliver public offering statement $10,000 Section 721.552, F.S.; Subsection 61B-39.007(9), F.A.C. Change in component site accommodations & facilities $5,000 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.; Paragraph 61B-39.005(5)(e), F.A.C. Management rejection/revocation $5,000/POS- 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.