HB 1551 2003
   
1 CHAMBER ACTION
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6          The Committee on Judiciary recommends the following:
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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.
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19          Be It Enacted by the Legislature of the State of Florida:
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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.
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