F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 627 2024
1 A bill to be entitled
2 An act relating to disclosure requirements for
3 prospective purchasers; amending s. 720.401, F.S.;
4 requiring prospective purchasers of a parcel subject
5 to association membership to be provided with certain
6 documents, in addition to the disclosure summary,
7 before executing a contract; authorizing prospective
8 purchasers to cancel their contract within a specified
9 timeframe under certain circumstances; specifying that
10 the 3-day cancellation period does not include
11 Saturdays, Sundays, and legal holidays; providing an
12 effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Subsection (1) of section 720.401, Florida
17 Statutes, is amended to read:
18 720.401 Prospective purchasers subject to association
19 membership requirement; disclosure required; covenants;
20 assessments; contract cancellation.—
21 (1)(a) A prospective purchaser parcel owner in a community
22 must be presented a disclosure summary before executing the
23 contract for sale. The disclosure summary must be in a form
24 substantially similar to the following form:
25 DISCLOSURE SUMMARY
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26 FOR
27 (NAME OF COMMUNITY)
28 1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
29 BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
30 2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
31 COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
32 COMMUNITY.
33 3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
34 ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
35 APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... YOU WILL ALSO
36 BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
37 ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
38 IF APPLICABLE, THE CURRENT AMOUNT IS $.... PER .....
39 4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
40 RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
41 ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
42 5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
43 LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD RESULT IN A
44 LIEN ON YOUR PROPERTY.
45 6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
46 FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
47 OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
48 APPLICABLE, THE CURRENT AMOUNT IS $.... PER .....
49 7. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
50 RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
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51 MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
52 8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
53 ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
54 SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
55 DOCUMENTS BEFORE PURCHASING PROPERTY.
56 9. THE PROSPECTIVE PURCHASER ACKNOWLEDGES THAT HE OR SHE
57 HAS BEEN PROVIDED A CURRENT COPY OF THE ASSOCIATION GOVERNING
58 DOCUMENTS, THE MOST RECENT ASSOCIATION YEAR-END FINANCIAL
59 INFORMATION, AND THE AGENDAS AND MINUTES FROM ALL ASSOCIATION
60 BOARD MEETINGS THAT TOOK PLACE IN THE 12 MONTHS IMMEDIATELY
61 PRECEDING THE EXECUTION OF THE CONTRACT FOR SALE THESE DOCUMENTS
62 ARE EITHER MATTERS OF PUBLIC RECORD AND CAN BE OBTAINED FROM THE
63 RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY IS LOCATED, OR
64 ARE NOT RECORDED AND CAN BE OBTAINED FROM THE DEVELOPER .
65 DATE: PURCHASER:
66 PURCHASER:
67 The disclosure summary must be supplied by the developer, or by
68 the parcel owner if the sale is by an owner that is not the
69 developer. Any contract or agreement for sale must shall refer
70 to and incorporate the disclosure summary and shall include, in
71 prominent language, a statement that the prospective purchaser
72 potential buyer should not execute the contract or agreement
73 until he or she has they have received and read the disclosure
74 summary required by this section.
75 (b) Each contract entered into for the sale of property
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76 governed by covenants subject to disclosure required by this
77 section must contain in conspicuous type a clause that states:
78 IF THE DISCLOSURE SUMMARY, CURRENT COPY OF THE ASSOCIATION
79 GOVERNING DOCUMENTS, MOST RECENT ASSOCIATION YEAR-END FINANCIAL
80 INFORMATION, AND AGENDAS AND MINUTES FROM ALL ASSOCIATION BOARD
81 MEETINGS THAT TOOK PLACE IN THE 12 MONTHS IMMEDIATELY PRECEDING
82 THE EXECUTION OF THIS CONTRACT, AS REQUIRED BY SECTION 720.401,
83 FLORIDA STATUTES, HAVE HAS NOT BEEN PROVIDED TO THE PROSPECTIVE
84 PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT
85 IS VOIDABLE BY THE PROSPECTIVE PURCHASER BUYER BY DELIVERING TO
86 THE SELLER OR THE SELLER'S AGENT OR REPRESENTATIVE WRITTEN
87 NOTICE OF THE PROSPECTIVE PURCHASER'S BUYER'S INTENTION TO
88 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
89 HOLIDAYS, AFTER RECEIPT OF SUCH DOCUMENTS THE DISCLOSURE SUMMARY
90 OR BEFORE PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY
91 PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. THE
92 PROSPECTIVE PURCHASER'S BUYER'S RIGHT TO VOID THIS CONTRACT
93 TERMINATES SHALL TERMINATE AT CLOSING.
94 (c) If the disclosure summary, current copy of the
95 association governing documents, most recent association year -
96 end financial information, and agendas and minutes from all
97 association board meetings that took place in the 12 months
98 immediately preceding the execution of a contract are is not
99 provided to a prospective purchaser before such the purchaser
100 executes a contract for the sale of property governed by
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101 covenants that are subject to disclosure pursuant to this
102 section, the prospective purchaser may void the contract by
103 delivering to the seller or the seller's agent or representative
104 written notice canceling the contract within 3 days , excluding
105 Saturdays, Sundays, and legal holidays, after receipt of such
106 documents the disclosure summary or before prior to closing,
107 whichever occurs first. This right may not be waived by the
108 prospective purchaser but terminates at closing.
109 Section 2. This act shall take effect July 1, 2024.
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Statutes affected: H 627 Filed: 720.401