What is the Florida HOA disclosure summary?

What does the disclosure summary say?

Section 720.401(1)(a) requires a form substantially similar to the statutory "Disclosure Summary for (Name of Community)." It tells the buyer that:

• Membership in the homeowners' association is mandatory.
• Recorded restrictive covenants govern the use and occupancy of properties in the community.
• The buyer must pay association assessments, which may change, plus any special assessments, with current amounts filled in if applicable.
• The buyer may also owe special assessments to the municipality, county or a special district.
• Failing to pay association assessments could result in a lien on the property.
• There may be rent or land-use fees for recreational or other commonly used facilities.
• The developer may have the right to amend the covenants without owner approval.
• The form is only a summary; the buyer should read the covenants and governing documents, which are recorded in the county records or available from the developer.[1]

Who provides it, and when?

The developer provides it on a sale by the developer, and the selling owner provides it on a resale. It must be presented before the buyer signs the contract. The contract must refer to and incorporate the summary and must state, in prominent language, that the buyer should not sign until receiving and reading it.[1]

What if you didn't get it before signing?

Every contract for property subject to this disclosure must include a conspicuous clause stating that if the summary wasn't provided before signing, the buyer may void the contract by delivering written notice to the seller or the seller's agent or representative within 3 days after receiving the summary or before closing, whichever occurs first. The right can't be waived, and it ends at closing.

Because the window is short, keep a dated record of when you received the summary, and talk to a Florida real-estate attorney before relying on the cancellation right.[1]

Does it apply to condos and to communities with several associations?

Section 720.401 does not apply to associations regulated under chapter 718 (condominiums), 719 (cooperatives), 721 (timeshares) or 723 (mobile home parks), or when disclosure is already made under those chapters. Condo buyers instead receive the resale documents required by section 718.503 and a 7-day review period.

Under chapter 720, a homeowners' association is one in which membership is a mandatory condition of owning a parcel and unpaid assessments may become a lien. Many communities have more than one association, so also request the estoppel certificate, which must list every other association the parcel belongs to, plus any transfer fees, open violations, and approval or right-of-first-refusal requirements.[1][2][3][4]