Homeowners' association disclosure summary

Common Elements summary — Section 720.405 is the HOA consumer-protection statute for parcel sales. Before a contract for the sale of a parcel becomes binding, the seller must give the buyer a "Homeowners' Association Disclosure Summary" in substantially the form prescribed by the statute — disclosing that the parcel is in an HOA, that there is a recorded declaration of covenants, that the buyer will be obligated to pay assessments, that assessments are subject to change, that there may be capital contribution charges at closing, that there are recorded restrictions on use of the property, and that the buyer should review the governing documents before closing. The buyer has a 3-day rescission right after receipt of the disclosure summary AND the governing documents. If the seller fails to deliver the summary at all, the buyer can void the contract at any time before closing. Real-estate brokers and sellers attempting to close without the disclosure summary face contract-rescission risk and potential damages. For boards and managers: the association is often asked to provide the governing-documents package for the disclosure. Charge a reasonable fee under 720.303(5) and produce promptly — slow document responses are a frequent source of broker complaints to DBPR.

Not legal advice. Click through to the official source for statutory text.