Florida Community Association Manager Practice Exam

What consequence does a developer face for failing to file properly with the DBPR or pay fees?

1. They may be fined

2. They may be prohibited from offering the units for sale

3. They must provide additional disclosures

4. They can face legal action

The correct answer is: They may be prohibited from offering the units for sale

The correct consequence a developer faces for failing to file properly with the Florida Department of Business and Professional Regulation (DBPR) or pay necessary fees is the prohibition from offering the units for sale. This measure helps ensure compliance with state regulations designed to protect prospective buyers and maintain the integrity of the real estate market. When developers do not adhere to filing requirements or fail to pay their fees, they are seen as not meeting the legal obligations necessary to conduct business in Florida. The state takes these regulations seriously to prevent developers from misrepresenting properties, violating consumer protection laws, or creating situations that could lead to financial harm for buyers. Therefore, a developer who does not comply may face severe restrictions, including being unable to market or sell units until all obligations are satisfied. In contrast, while fines and legal actions could also result from improper filings, the immediate and direct consequence that effectively impacts a developer's ability to operate is the prohibition of sales. Additional disclosures typically pertain to transparency with prospective buyers rather than direct consequences of failing to register properly.