25 LC 62 0085
Senate Bill 315
By: Senators Esteves of the 35th, James of the 28th, Kemp of the 38th, Mangham of the 55th
and Islam Parkes of the 7th
A BILL TO BE ENTITLED
AN ACT
To amend Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated,
1
relating to property owners' associations, so as to require property owners' associations to2
provide disclosures and certain documents before a lot sale closes; to provide for forms; to3
provide for definitions; to provide for penalties; to provide for a cause of action; to provide4
for an effective date and applicability; to provide for related matters; to repeal conflicting5
laws; and for other purposes.6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
SECTION 1.8
Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to9
property owners' associations, is amended by adding a new Code section to read as follows:10
"44-3-231.1.
11
(a) As used in this Code section, the term:12
(1) 'Lot' shall have the same meaning as set forth in Code Section 44-3-221.13
(2) 'Lot owner' shall have the same meaning as set forth in Code Section 44-3-221.14
(3) 'Property owners' association' or 'association' means a nongovernmental association15
of participating members in a delineated area comprising a neighborhood or a group of16
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homeowners and property owners, including, but not limited to, a homeowners'17
association.18
(b)(1) A prospective lot owner in a property owners' association shall be presented a19
disclosure summary before executing the contract for sale. The disclosure summary shall20
be substantially similar to the following form:21
'DISCLOSURE SUMMARY22
FOR (NAME OF PROPERTY OWNERS' ASSOCIATION)23
(1) As a purchaser of property in this association, you shall be obligated to be a24
member of a property owners' association.25
(2) There have been or shall be recorded restricted covenants governing the use26
and occupancy of properties in this community.27
(3) You shall be obligated to pay assessments to the association. Assessments28
may be subject to periodic change. If applicable, the current amount is $____ per29
____. You shall also be obligated to pay any special assessments imposed by the30
association. Such special assessments may be subject to change. If applicable,31
the current amount is $___ per ___.32
(4) You may be obligated to pay special assessments to the respective33
municipality, county, or special district. All assessments are subject to periodic34
change.35
(5) Your failure to pay special assessments or assessments levied by a property36
owners' association could result in a lien on your property.37
(6) There may be an obligation or rent or land use fees for recreational or other38
commonly used facilities as an obligation of membership in the property owners'39
association. If applicable, the current amount is $___ per ___.40
(7) The declarant may have the right to amend the restrictive covenants without41
the approval of the association membership or the approval of the parcel owners.42
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(8) The statements contained in this disclosure form are only summary in nature,43
and, as a prospective lot owner, you should refer to the covenants and the44
association governing documents before purchasing property.45
(9) These documents are either matters of public record and can be obtained from46
the record office in the county where the property is located, or are not recorded47
and can be obtained from the declarant.'48
(2) The disclosure shall be supplied by the declarant or by the lot owner if the sale is by49
a lot owner that is not the declarant. Any contract or agreement for sale shall refer to and50
incorporate the disclosure summary and shall include, in prominent language, a statement51
that the potential buyer shall not execute the contract or agreement until he or she has52
received and read the disclosure summary required by this Code section.53
(c) Each contract entered into for the sale of a lot governed by covenants subject to54
disclosure as required by this Code section shall contain in conspicuous type a clause that55
states:56
'IF THE DISCLOSURE SUMMARY REQUIRED BY CODE SECTION 44-3-231.1 OF57
THE OFFICIAL CODE OF GEORGIA ANNOTATED HAS NOT BEEN PROVIDED58
TO THE PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT59
FOR SALE, THIS CONTRACT IS VOIDABLE BY DELIVERING TO SELLER OR60
SELLER'S AGENT OR REPRESENTATIVE WRITTEN NOTICE OF THE BUYER'S61
INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE62
DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS63
FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO64
EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT65
CLOSING.'66
(d) If a disclosure summary in a substantially similar form as set forth in subsection (b) of67
this Code section is not provided to a prospective purchaser before the purchaser executes68
a contract for the sale of property governed by covenants that are subject to disclosure69
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pursuant to this Code section, the purchaser may void the contract by delivering to the70
seller or the seller's agent or representative written notice cancelling the contract within 371
days after receipt of the disclosure summary or prior to closing, whichever occurs first. 72
This right may not be waived by the purchaser but terminates at closing.73
(e) In addition to the disclosure summary provided in subsection (b) of this Code section,74
a contract shall be voidable by the buyer until at least seven days after the seller has75
furnished the prospective lot owner with the documents specified in this subsection. The76
furnished copy of any such document which shall be executed in order to be effective shall77
be a copy of such executed document. The documents required under this subsection to78
be furnished to the prospective buyer are:79
(1) A copy of the declaration and of each amendment thereto as of the time of purchase;80
(2) A copy of the articles of incorporation and bylaws of the association and of each81
amendment to either as of the time of purchase;82
(3) A copy of any management, maintenance, or other contract for the management and83
operation of the association or the facilities to be used by lot owners having a term in84
excess of one year. Contracts renewable without the consent of the association shall be85
deemed to have a term in excess of one year;86
(4) The estimated or actual operating budget for the association for the current year87
containing the matters set forth in subparagraph (A) of this paragraph and a schedule of88
estimated or actual expenses pertaining to each lot for the current year containing the89
matters set forth in subparagraph (B) of this paragraph:90
(A) Expenses of the association for:91
(i) Administration;92
(ii) Management fees;93
(iii) Maintenance;94
(iv) Rent for recreational and other commonly used facilities;95
(v) Taxes on property of the association;96
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(vi) Insurance;97
(vii) Security provisions;98
(viii) Other expenses;99
(ix) Operating capital;100
(x) Reserve for deferred maintenance;101
(xi) Reserve for depreciation; and102
(xii) Other reserves; and103
(B) Expenses required of the lot owner for:104
(i) Assessments to cover association expenses; and105
(ii) Rent, fees, or charges payable by the lot owner directly to the lessor or the lessor's106
agent under any recreational lease or lease for the use of commonly used facilities,107
which leases are and payment of is a mandatary condition of ownership and which108
payment is not included in the assessments paid by the lot owner to the association;109
(5) A copy of any lease of recreational or other facilities that shall be used only by the110
lot owners;111
(6) A copy of any lease of recreational or other facilities that shall be used by lot owners112
in common with any other person; and113
(7) A copy of a statement setting forth the extent of and conditions or limitations114
applicable to the declarant's commitment to build and submit additional lots, additional115
recreational or other facilities, or additional property.116
(f) The items required by subsection (e) of this Code section shall be bound or stapled into117
a single package and covered by an index sheet listing each item required by said118
subsection and showing either that the same is attached or does not exist. A nonrefundable119
deposit not in excess of $25.00 may be required of the recipient of the documents required120
by this Code section, such deposit to be applied to the purchase price of the lot in the event121
of purchase by the prospective lot owner. A dated, written acknowledgment of receipt of122
all items required by subsection (e) of this Code section, executed by the prospective lot123
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owner, shall be prima-facie evidence of the date of delivery of said items. The124
requirements of subsection (e) of this Code section may not be waived.125
(g) No contract executed prior to the expiration of seven days after the actual delivery to126
the prospective lot owner of the items required to be furnished by subsection (e) of this127
Code section shall be of any force or effect. This subsection may not be waived. The128
contract shall contain within the text the following, in boldface type or capital letters no129
smaller than the largest type in the text:130
'UNLESS ALL OF THE ITEMS REQUIRED UNDER CODE SECTION 44-3-231.1 OF131
THE OFFICIAL CODE OF GEORGIA ANNOTATED TO BE DELIVERED TO132
BUYER HAVE BEEN RECEIVED BY BUYER AT LEAST SEVEN DAYS PRIOR TO133
BUYER'S EXECUTION OF THIS CONTRACT, THIS CONTRACT IS OF NO FORCE134
OR EFFECT AND SHALL NOT BE BINDING ON ANY PARTY. THE ITEMS SO135
REQUIRED ARE: (1) THE DECLARATION AND AMENDMENTS THERETO, (2)136
THE ASSOCIATION'S ARTICLES AND INCORPORATION AND BYLAWS AND137
AMENDMENTS THERETO, (3) ANY MANAGEMENT CONTRACT HAVING A138
TERM IN EXCESS OF ONE YEAR, (4) THE ESTIMATED OR ACTUAL BUDGET139
FOR THE ASSOCIATION, (5) ANY LEASE OF RECREATIONAL OR OTHER140
FACILITIES THAT SHALL BE USED ONLY BY THE LOT OWNERS, (6) ANY141
LEASE OF RECREATIONAL OR OTHER FACILITIES THAT MAY BE USED BY142
THE LOT OWNER WITH OTHERS, AND (7) A STATEMENT SETTING FORTH143
THE EXTENT OF THE SELLER'S COMMITMENT TO BUILD OR SUBMIT144
ADDITIONAL LOTS, ADDITIONAL RECREATIONAL OR OTHER FACILITIES,145
OR ADDITIONAL PROPERTY. A DATED, WRITTEN ACKNOWLEDGMENT OF146
RECEIPT OF ALL SAID ITEMS SIGNED BY THE BUYER SHALL BE147
PRIMA-FACIE EVIDENCE OF THE DATE OF DELIVERY OF SAID ITEMS.'148
(h) The items required to be furnished or made available to a prospective lot owner under149
this Code section shall constitute a part of each contract, and no change may be made in150
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any such items which would materially affect the rights of the prospective lot owner or the151
value of the lot without the approval of the prospective lot owner except to the extent that152
such items by their own terms, by the express terms of such covered contract, or by the153
provisions of this article may be changed without the consent of any lot owner or154
prospective lot owner.155
(i) In addition to the provisions required in this Code section, a contract shall include a156
caveat in boldface type or capital letters no smaller than the largest type on the page shall157
be placed upon the first page of the contract in the following words:158
'ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY159
STATING THE REPRESENTATIONS OF THE SELLER. FOR CORRECT160
REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THIS CONTRACT161
AND THE DOCUMENTS REQUIRED BY CODE SECTION 44-3-231.1 OF THE162
OFFICIAL CODE OF GEORGIA ANNOTATED TO BE FURNISHED BY A SELLER163
TO A BUYER.'164
(j) If any lot is offered for sale prior to the completion of the construction or remodeling165
of such lot or of improvements of common elements, the seller shall make available to each166
prospective lot owner for his or her inspection at a place convenient to the site a copy of167
the existing plans and specifications for the construction or remodeling of such lot and of168
the improvements of common elements, whichever is not complete at the time of such169
offering for sale.170
(k) Any sales brochures describing the association and the lots for sale shall include a171
description and location of the recreational facilities proposed to be provided by the seller172
and other commonly used facilities together with a statement indicating:173
(1) Which of the facilities shall be owned by the lot owners as part of the common174
elements and which of the facilities shall be owned by others;175
(2) Whether, with respect to each facility so shown, the seller is obligated to complete176
the same; and177
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(3) The limitations or conditions, if any, on the seller's obligation to complete the same.178
A caveat in boldface type or capital letters no smaller than the largest type of text material179
shall be conspicuously placed on the inside front cover of the sales brochure or on the180
first page containing text material or shall be otherwise conspicuously displayed181
containing the following words:182
'ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY183
STATING REPRESENTATIONS OF THE SELLER. FOR CORRECT184
REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THIS BROCHURE185
AND TO THE DOCUMENTS REQUIRED BY CODE SECTION 44-3-231.1 OF THE186
OFFICIAL CODE OF GEORGIA ANNOTATED TO BE FURNISHED BY THE187
SELLER TO A BUYER.'188
(l) Any person who, in reasonable reliance upon any false or misleading material statement189
or information published by or under authority from the seller in advertising and190
promotional materials, including, but not limited to, the items required to be furnished by191
this Code section, brochures, and newspaper advertising, or who, without having been192
furnished with all of the information required to be furnished by this Code section, pays193
anything of value toward the purchase of a lot located to this state shall be entitled to bring194
an action against the seller for damages under this Code section at any time prior to the195
expiration of one year of the date upon which the last of the events described in196
paragraphs (1) through (5) of this subsection shall occur:197
(1) The closing of the transaction;198
(2) The first issuance by the applicable governmental authority of a certificate of199
occupancy or other evidence of sufficient completion of construction of the lot to allow200
lawful occupancy of the lot. In counties or municipalities in which certificates of201
occupancy or other evidence of completion sufficient to allow lawful occupancy are not202
customarily issued, for the purposes of this Code section, evidence of lawful occupancy203
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shall be deemed to have been given or issued upon the date that such lawful occupancy204
of the lot may first be allowed under prevailing applicable laws, ordinances, or statutes;205
(3) The completion of the common elements and any recreational facilities, whether or206
not the same are common elements, which the seller is obligated to complete or to207
provide under the terms of the written contract for the sale of the lot;208
(4) As to claims relating to the common elements and other portions of the association209
which are the responsibility of the association to maintain, the date upon which the210
declarant's right to control the association terminates; and211
(5) In the event there is no written contract for the sale of the lot, then the completion of212
common elements and such recreational facilities, whether or not the same are common213
elements, which the seller would be obligated to complete under any rule of law214
applicable to the seller's obligation.215
(m) Under no circumstances shall a cause of action created or recognized under this Code216
section survive for a period of more than five years after the closing of the transaction. 217
Any person who has a right of action for damages as provided in this Code section shall218
have the additional right to rescind any contract for the purchase of a lot at any time prior219
to the closing of the transaction. In any action for relief under this Code section, the220
prevailing party shall be entitled to recover reasonable attorney's fees.221
(n) Willful violation of any of the requirements of this Code section by the declarant, the222
seller, any sales agent or broker, or any other person shall result in a fine of $1,000.00."223
SECTION 2.224
This Act shall become effective on July 1, 2025, and shall apply to all lot sales made on or225
after such date.226
SECTION 3.227
All laws and parts of laws in conflict with this Act are repealed.228
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