HB 1551 2003
1	CHAMBER ACTION
2
3
4
5
6	The Committee on Judiciary recommends the following:
7
8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to the sale of real property; amending s.
12	689.26, F.S.; revising certain requirements for
13	disclosures that must be provided to prospective
14	purchasers; providing for cancellation of certain
15	contracts within a time certain after entering into such
16	contracts; specifying voidability of certain contracts
17	under certain circumstances; providing an effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1. Section 689.26, Florida Statutes, is amended to
22	read:
23	689.26 Prospective purchasers subject to association
24	membership requirement; disclosure required; covenants;
25	assessments; contract voidability.--
26	(1)(a)A prospective parcel owner in a community must be
27	presented a disclosure summary before executing the contract for
28	sale. The disclosure summary must be in a form substantially
29	similar to the following form:
30	DISCLOSURE SUMMARY
31	FOR
32	(NAME OF COMMUNITY)
33
34	1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU
35	(WILL) (WILL NOT)WILLBE OBLIGATED TO BE A MEMBER OF A
36	HOMEOWNERS' ASSOCIATION.
37	2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
38	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
39	COMMUNITY.
40	3. YOU (WILL) (WILL NOT)WILLBE OBLIGATED TO PAY
41	ASSESSMENTS TO THE ASSOCIATION. YOU (WILL) (WILL NOT) BE
42	OBLIGATED TO PAY ASSESSMENTS TO THE MUNICIPALITY. ALL, WHICH
43	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
44	4. YOUR FAILURE TO PAY THESE ASSESSMENTS COULD RESULT IN A
45	LIEN ON YOUR PROPERTY.
46	5. THERE (IS) (IS NOT) AN OBLIGATION TO PAY RENT OR LAND
47	USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS
48	AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. (If
49	such obligation exists, then the amount of the current
50	obligation shall be set forth.)
51	6. THE RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED
52	WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR PARCEL
53	OWNERS.
54	7. 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	8. THESE DOCUMENTS ARE MATTERS OF PUBLIC RECORD AND CAN BE
59	OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY
60	IS LOCATED.
61	DATE: PURCHASER:
62	PURCHASER:
63
64	The disclosure must be supplied by the developer, or by the
65	parcel owner if the sale is by an owner that is not the
66	developer. Any contract or agreement for sale shall refer to and
67	incorporate the disclosure summary and shall include, in
68	prominent language, a statement that the potential buyer should
69	not execute the contract or agreement until they have received
70	and read the disclosure summary required by this section.
71	(b) Each contract entered into for the sale of property
72	governed by covenants subject to the disclosure requirements of
73	this section must contain in conspicuous type a clause that
74	states:
75	IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 689.26,
76	FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE
77	PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS
78	CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR
79	SELLER’S AGENT WRITTEN NOTICE OF THE BUYER'S INTENTION TO
80	CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE
81	SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY
82	PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT.
83	BUYER'S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT
84	CLOSING.
85	(c) A contract that does not conform to the requirements
86	of this subsection is voidable by the purchaser pursuant to
87	paragraph (b).
88	(2) This section does not apply to any association
89	regulated under chapter 718, chapter 719, chapter 721, or
90	chapter 723 or to a subdivider registered under chapter 498; and
91	also does not apply if disclosure regarding the association is
92	otherwise made in connection with the requirements of chapter
93	718, chapter 719, chapter 721, or chapter 723.
94	Section 2. This act shall take effect October 1, 2003.
95