Florida Senate - 2024 SB 1234 By Senator Rodriguez 40-01617-24 20241234__ 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: 18 720.401Prospective 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 26 DISCLOSURE SUMMARY 27 FOR 28 (NAME OF COMMUNITY) 29 30 1.AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL 31 BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS ASSOCIATION. 32 2.THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE 33 COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS 34 COMMUNITY. 35 3.YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE 36 ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF 37 APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... YOU WILL ALSO 38 BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE 39 ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. 40 IF APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... 41 4.YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE 42 RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL 43 ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE. 44 5.YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS 45 LEVIED BY A MANDATORY HOMEOWNERS ASSOCIATION COULD RESULT IN A 46 LIEN ON YOUR PROPERTY. 47 6.THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES 48 FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN 49 OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS ASSOCIATION. IF 50 APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... 51 7.THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE 52 RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION 53 MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS. 54 8.THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE 55 ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU 56 SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING 57 DOCUMENTS BEFORE PURCHASING PROPERTY. 58 9.THE PROSPECTIVE PURCHASER ACKNOWLEDGES THAT HE OR SHE 59 HAS BEEN PROVIDED A CURRENT COPY OF THE ASSOCIATION GOVERNING 60 DOCUMENTS, THE MOST RECENT ASSOCIATION YEAR-END FINANCIAL 61 INFORMATION, AND THE AGENDAS AND MINUTES FROM ALL ASSOCIATION 62 BOARD MEETINGS THAT TOOK PLACE IN THE 12 MONTHS IMMEDIATELY 63 PRECEDING THE EXECUTION OF THE CONTRACT FOR SALE THESE DOCUMENTS 64 ARE EITHER MATTERS OF PUBLIC RECORD AND CAN BE OBTAINED FROM THE 65 RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY IS LOCATED, OR 66 ARE NOT RECORDED AND CAN BE OBTAINED FROM THE DEVELOPER. 67 68 DATE: PURCHASER: 69 PURCHASER: 70 71 The disclosure summary must be supplied by the developer, or by 72 the parcel owner if the sale is by an owner that is not the 73 developer. Any contract or agreement for sale must shall refer 74 to and incorporate the disclosure summary and shall include, in 75 prominent language, a statement that the prospective purchaser 76 potential buyer should not execute the contract or agreement 77 until he or she has they have received and read the disclosure 78 summary required by this section. 79 (b)Each contract entered into for the sale of property 80 governed by covenants subject to disclosure required by this 81 section must contain in conspicuous type a clause that states: 82 83 IF THE DISCLOSURE SUMMARY, CURRENT COPY OF THE ASSOCIATION 84 GOVERNING DOCUMENTS, MOST RECENT ASSOCIATION YEAR-END FINANCIAL 85 INFORMATION, AND AGENDAS AND MINUTES FROM ALL ASSOCIATION BOARD 86 MEETINGS THAT TOOK PLACE IN THE 12 MONTHS IMMEDIATELY PRECEDING 87 THE EXECUTION OF THIS CONTRACT, AS REQUIRED BY SECTION 720.401, 88 FLORIDA STATUTES, HAVE HAS NOT BEEN PROVIDED TO THE PROSPECTIVE 89 PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT 90 IS VOIDABLE BY THE PROSPECTIVE PURCHASER BUYER BY DELIVERING TO 91 THE SELLER OR THE SELLERS AGENT OR REPRESENTATIVE WRITTEN 92 NOTICE OF THE PROSPECTIVE PURCHASERS BUYERS INTENTION TO 93 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 94 HOLIDAYS, AFTER RECEIPT OF SUCH DOCUMENTS THE DISCLOSURE SUMMARY 95 OR BEFORE PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY 96 PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. THE 97 PROSPECTIVE PURCHASERS BUYERS RIGHT TO VOID THIS CONTRACT 98 TERMINATES SHALL TERMINATE AT CLOSING. 99 100 (c)If the disclosure summary, current copy of the 101 association governing documents, most recent association year 102 end financial information, and agendas and minutes from all 103 association board meetings that took place in the 12 months 104 immediately preceding the execution of a contract are is not 105 provided to a prospective purchaser before such the purchaser 106 executes a contract for the sale of property governed by 107 covenants that are subject to disclosure pursuant to this 108 section, the prospective purchaser may void the contract by 109 delivering to the seller or the sellers agent or representative 110 written notice canceling the contract within 3 days, excluding 111 Saturdays, Sundays, and legal holidays, after receipt of such 112 documents the disclosure summary or before prior to closing, 113 whichever occurs first. This right may not be waived by the 114 prospective purchaser but terminates at closing. 115 Section 2.This act shall take effect July 1, 2024.