Terms Used In Florida Regulations 61B-21.003

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fiduciary: A trustee, executor, or administrator.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Statute: A law passed by a legislature.
  • Subpoena: A command to a witness to appear and give testimony.
    (1) Pursuant to section 718.501(1)(d)6., F.S., the division sets forth below disciplinary guidelines from which disciplinary penalties will be imposed upon affected parties guilty of violating chapter 718, F.S., and the rules promulgated thereunder. The purpose of the disciplinary guidelines is to provide notice to affected parties of the range of penalties which may be imposed for each count. Multiple counts of the violated provision or a combination of the listed violations will be added together to determine an overall total penalty. Nothing in this rule chapter shall limit the ability of the division to informally dispose of administrative actions or complaints by stipulation, settlement agreement, or consent order. Nothing in this rule chapter shall limit the division’s ability to seek judicial enforcement and remedies through the courts. The provisions of this rule chapter shall not be construed so as to prohibit or limit any other administrative, civil, or criminal action that may be brought, including notices to cease and desist.
    (2) Penalties will be assessed beginning with the middle of the specified range and adjusted up or down based upon any aggravating or accepted mitigating circumstances. The minimum total penalty to be assessed shall be calculated according to these guidelines or $500, whichever amount is greater. In no event shall a penalty of more than the statutory maximum be imposed for a single violation. A penalty range of $10 to $30 per unit are set forth for each violation. The absence of any violation from this rule chapter shall not be construed to indicate that the violation does not cause substantial harm or is not subject to a penalty. In any instance where the violation is not listed in this rule chapter, the penalty will be determined by consideration of the closest analogous violation.
Category
Statute or Rule
Description of Conduct/Violation
Accounting Records
718.111(12)(a)11., F.S.
61B-22.002, F.A.C.
Insufficient or incomplete accounting records.
Accounting Records
718.111(12)(a)11., F.S.
Failure to maintain separate accounting records for each condominium.
Assessing
718.112(2)(g), F.S.
Assessments not sufficient to meet expenses.
Assessing
718.112(2)(g), F.S.
Collecting assessments less frequently than quarterly.
Assessing
718.115(2), F.S.
Assessments not based upon the shares stated in the declaration of condominium or required by statute.
Assessing
718.115(4), F.S.
Assessments not properly apportioned among multiple condominiums.
Assessing
718.116(3), F.S.
Failure to charge interest on past-due assessments.
Assessing
718.116(9), F.S.
Developer or other owner improperly excused from paying assessments.
Board
718.110(4), F.S.
Improperly amending the declaration of condominium to change the proportion or percentage by which the unit owner shares the common expenses of the condominium and owns the common surplus of the condominium.
Board
718.111(4), F.S.
Improper use fee.
Board
718.111(7)(a), F.S.
Mortgaging or conveying association property without unit-owner approval.
Board
718.111(11)(h), F.S.
Failure to maintain adequate fidelity bonding.
Board
718.112(2)(a)1., F.S.
Compensating officers or members of the board without documentary authority.
Board
718.112(2)(i), F.S.
Improper transfer fees or security deposits.
Board
718.116(3), F.S.
Levying late fees without documentary authority.
Board
718.303, F.S.
Imposing fines without proper notice and opportunity for hearing. Imposing excessive fines. Improper suspension of voting rights without proper notices.
Board
718.112(2)(d)2., F.S.
Allowing ineligible person to run for board of administration.
Board
718.3026(1), F.S.
Failure to obtain competitive bids on contracts that exceed five percent of the association’s budget.
Budgets
718.112(2)(e), F.S.
Failure to propose/adopt budget for a given year.
Budgets
718.112(2)(f)1., F.S.
Failure to include a schedule of limited common element expenses in budget.
Budgets
61B-22.003(4)(a), F.A.C.
Failure to prepare a separate budget for each condominium operated by the association as well as for the association.
Budgets
61B-22.003(1)(e), (f), (g),
F.A.C.
Failure to include reserve schedule in the proposed budget. Failure to disclose converter-reserve funding.
Budgets
718.112(2)(f)2., F.S.
61B-22.005(3), (5), F.A.C.
Improper calculation of reserve requirements.
Commingle
718.111(14), F.S.
Commingling association funds with non-association funds.
Commingle
718.111(14), F.S.
61B-22.005(2), F.A.C.
Commingling reserve funds with operating funds.
Common Expenses
718.103(9), 718.115(1), F.S.
61B-23.003(3), F.A.C.
Using association funds for other than common expenses.
Conflict of Interest
718.112(2)(p), F.S.
Contracting with a service provider owned by a board member.
Conflict of Interest
718.3027(1), (2), (4), F.S.
Failing to properly disclose a conflict of interest.
Converter Reserves
718.618(3)(b), F.S.
Improper use of converter reserves.
Debit Card
718.111(15), F.S.
Use of an association debit card for any association expense.
Elections
718.112(2)(d), F.S.
61B-23.0021(2), F.A.C.
Failure to hold an annual election.
Elections
718.112(2)(d)4., F.S.
Failure to use ballots or voting machines.
Elections
61B-23.0021(8), F.A.C.
Failure to provide space for name, unit number, or signature on outer envelope.
Elections
718.112(2)(d)4.a., F.S.
61B-23.0021(4), F.A.C.
Failure to provide, or timely provide, first notice of election.
Elections
61B-23.0021(3), F.A.C.
Improper nomination procedures in election.
Elections
61B-23.0021(2), F.S.
Election not held at time and place of annual meeting.
Elections
61B-23.0021(6), F.A.C.
Failure to provide candidate with a receipt for written notice of candidacy.
Elections
718.112(2)(d)4.a., F.S.
61B-23.0021(7), (8), F.A.C.
Failure to provide, or timely provide, second notice of election or omitting ballots, envelopes, or candidate information sheets.
Elections
718.112(2)(d)4., F.S.
61B-23.0021(5), F.A.C.
Ballot included a candidate who is ineligible. Ballot not including an eligible candidate.
Elections
61B-23.0021(8), F.A.C.
Voters allowed to rescind or change their previously cast ballots.
Elections
61B-23.0021(8), F.A.C.
Second notice of election and accompanying documents included comments by board about candidates.
Elections
61B-23.0021(10)(a), F.A.C.
Ballots not counted by impartial committee.
Elections
718.112(2)(d)4., F.S.
61B-23.0021(7), F.A.C.
Association altered or edited candidate-information sheets.
Elections
61B-23.0021(10)(a), F.A.C.
Inner envelopes not placed in separate receptacle before being opened.
Elections
61B-23.0021(9), F.A.C.
Ballots not uniform. Ballots identify voter. Ballot contained space for write-in candidate.
Elections
61B-23.0021(10), F.A.C.
Outer envelopes not checked against list of eligible voters.
Elections
61B-23.0021(10)(a), (b),
F.A.C.
Counting ineligible ballots.
Elections
61B-23.0021(10), F.A.C.
Failure to count properly cast ballots.
Elections
61B-23.0021(10), F.A.C.
Outer envelopes opened prior to election meeting.
Outer envelopes not opened in presence of unit owners.
Elections
61B-23.0021(10)(a), F.A.C.
Not counting ballots in the presence of unit owners.
Elections
61B-23.0021(10)(b), F.A.C.
Failure to notice meeting to verify outer envelope information.
Elections
61B-23.0021(10)(c), F.A.C.
Failure to timely hold a runoff election.
Elections
61B-23.003(7)(f), F.A.C.
Improperly permitting a developer to vote for a majority of the board.
Elections
61B-23.0021(10)(a), F.A.C.
No blank ballots available at election meeting.
Estoppel Certificate
718.116(8), F.S.
Failure to timely provide an estoppel certificate or failure of the certificate to contain all required components.
Final Order
718.501(1)(d)6., F.S.
Failure to comply with final order of the division.
Fiduciary Duty
718.111(1)(a), F.S.
Violating a fiduciary duty.
Investigation
718.501(1)(n), F.S.
Failure to reasonably cooperate with an investigation.
Property
718.111(7)(a), F.S.
Failing to get approval for acquisition, conveyance, lease, or mortgage of association real property.
Property
718.111(9), F.S.
Improper purchase of unit at a foreclosure sale.
Records
718.111(12)(a), F.S.
Failure to maintain official records.
Records
718.111(12)(c), F.S.
Requiring a unit owner to pay a fee for access to association records.
Records
718.111(12)(b), F.S.
Failure to maintain records within 45 miles, or within the county, of the condominium property.
Records
718.111(12)(b), (c), F.S.
Failure to timely provide access to records.
Failure to allow scanning or copying of records.
Records
718.111(12)(f), F.S.
718.501(1)(d)6., F.S.
Failure of outgoing board or committee member or relinquish all official records and property of the association in his or her possession or under their control to the incoming board within 5 days after the election.
Reporting
718.111(13), F.S.
Failure to timely provide annual financial report or statements.
Reporting
61B-22.006(1), F.A.C.
Failure to timely prepare annual financial statements using fund accounting. Failure to prepare annual financial statements on accrual basis.

Reporting
61B-22.006(1), F.A.C.
Failure to prepare annual financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Failure to have reviewed or audited annual financial statements prepared by a Florida-licensed CPA.
Reporting
61B-22.006(2), F.A.C.
Failure to include one or more components of the annual financial statements (incomplete).
Reporting
61B-22.006(3)(a)1., 6.,
F.A.C.
61B-22.006(6), F.A.C.
Failure to make significant reserve fund disclosures in annual financial statements or annual financial report.
Reporting
61B-22.006(3)(a)7., F.A.C.
61B-22.006(6), F.A.C.
Failure to include converter reserve disclosures in the annual financial statements or annual financial report.
Reporting
61B-22.006(4), F.A.C.
Failure to include reserve fund disclosures and/or revenues, expenses, and changes in fund balances for each condominium and the association in the annual financial statements of a multi-condominium association.
Reporting
61B-22.006(5), F.A.C.
Failure to show developer assessments separately from other assessment revenues in the annual financial report (statement).
Reporting
61B-22.006(3), F.A.C.
61B-22.006(6)(c), F.A.C.
Failure to include the special assessments disclosures in the annual financial statements or annual financial report.
Reporting
61B-22.006(6)(e), F.A.C.
Failure to separately present revenues and expenses for each condominium and the association in the annual financial report of a multi-condominium association.
Reporting
61B-22.006(3)(e), F.A.C.
Guarantee disclosures incomplete or missing from annual financial statements.
Reporting
61B-22.004(5), F.A.C.
Improper calculation of guarantor‘s final obligation.
Reporting
718.111(13)(b), F.S.
61B-22.006(6)(a), F.A.C.
Annual financial report not prepared on a cash basis.
Reporting
718.111(13)(b), F.S.
Annual financial report does not include specified receipt or expenditure items.
Reporting
61B-22.006(3)(d), F.A.C.
61B-22.006(6)(d), F.A.C.
Annual financial statements or annual financial report does not disclose revenues and expenses related to limited common elements.
Reporting
718.111(13)(a), F.S.
Providing lower level of annual financial reporting than required based on the number of units and annual revenues.
Reserves
718.112(2)(f)2., F.S.
61B-22.005(6), F.A.C.
Failure to fund reserves in a timely manner. Failure to fully fund reserves.
Reserves
718.112(2)(f)2., F.S.
61B-22.005(8), F.A.C.
Failure to follow proper method to waive or reduce reserve funding.
Reserves
718.112(2)(f)3., F.S.
61B-22.005(7), F.A.C.
Using reserve funds for other purposes without proper unit owner approval.
Special Assessment
718.116(10), F.S.
Using special assessment funds for other purposes.
Special Assessment
718.116(10), F.S.
Special assessment notice does not state purpose of assessment.
Website
718.111(12)(g), F.S.
Failing to include required documents on website.
    (3) When either the Petitioner or Respondent is able to demonstrate aggravating or mitigating circumstances to the division or hearing officer in an enforcement action by clear and convincing evidence, the division or hearing officer shall be entitled to deviate from the above guidelines in imposing or recommending discipline.
    (a) Aggravating circumstances may include, but are not limited to, the following:
    1. Filing or causing to be filed any materially incorrect document in response to any division request or subpoena.
    2. Financial loss to parties or persons affected by the violation.
    3. Financial gain to parties or persons responsible for the violation.
    4. The disciplinary history of the association.
    5. The harm caused to unit owner(s) or other persons or entities.
    6. The violation occurred for a long period of time.
    7. The length of time between violations
    8. The association impeded the division’s investigation or authority.
    (b) Mitigating circumstances may include, but are not limited to, the following:
    1. The violation or harm was related to a natural or manmade disaster.
    2. The violation caused no harm to unit owner(s) or other persons or entities.
    3. The association took affirmative or corrective action before it received the division’s written notification of the violation.
    4. The association expeditiously took affirmative or corrective action after it received the division’s written notification of the violation.
    5. The association cooperated with the division during the investigation.
    (4) In addition to the penalties established in this rule chapter, the division reserves the right to seek to recover any other costs, penalties, attorney’s fees, court costs, service fees, collection costs, and damages allowed by law.
Rulemaking Authority 718.501(1)(d)6., (f) FS. Law Implemented 718.501(1)(d)6. FS. History—New 6-4-98, Amended 9-3-13, 12-5-18.