HB 1551, Engrossed 1 2003
1	A bill to be entitled
2	An act relating to the sale of real property; amending s.
3	689.26, F.S.; revising certain requirements for
4	disclosures that must be provided to prospective
5	purchasers; providing for cancellation of certain
6	contracts within a time certain after entering into such
7	contracts; specifying voidability of certain contracts
8	under certain circumstances; providing an effective date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1. Section 689.26, Florida Statutes, is amended to
13	read:
14	689.26 Prospective purchasers subject to association
15	membership requirement; disclosure required; covenants;
16	assessments; contract voidability.--
17	(1)(a)A prospective parcel owner in a community must be
18	presented a disclosure summary before executing the contract for
19	sale. The disclosure summary must be in a form substantially
20	similar to the following form:
21	DISCLOSURE SUMMARY
22	FOR
23	(NAME OF COMMUNITY)
24
25	1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU
26	(WILL) (WILL NOT)WILLBE OBLIGATED TO BE A MEMBER OF A
27	HOMEOWNERS' ASSOCIATION.
28	2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
29	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
30	COMMUNITY.
31	3. YOU (WILL) (WILL NOT)WILLBE OBLIGATED TO PAY
32	ASSESSMENTS TO THE ASSOCIATION. YOU (WILL) (WILL NOT) BE
33	OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE
34	MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL, WHICH
35	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
36	4. YOUR FAILURE TO PAY SPECIALTHESE ASSESSMENTS OR
37	ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATIONCOULD
38	RESULT IN A LIEN ON YOUR PROPERTY.
39	5. THERE (IS) (IS NOT) AN OBLIGATION TO PAY RENT OR LAND
40	USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS
41	AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. (If
42	such obligation exists, then the amount of the current
43	obligation shall be set forth.)
44	6. THE RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED
45	WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR, IF NO
46	MANDATORY ASSOCIATION EXISTS, PARCEL OWNERS.
47	7. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
48	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
49	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
50	DOCUMENTS BEFORE PURCHASING PROPERTY.
51	8. THESE DOCUMENTS ARE MATTERS OF PUBLIC RECORD AND CAN BE
52	OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY
53	IS LOCATED.
54
55	DATE:
56	PURCHASER:
57	PURCHASER:
58
59
60	The disclosure must be supplied by the developer, or by the
61	parcel owner if the sale is by an owner that is not the
62	developer. Any contract or agreement for sale shall refer to and
63	incorporate the disclosure summary and shall include, in
64	prominent language, a statement that the potential buyer should
65	not execute the contract or agreement until they have received
66	and read the disclosure summary required by this section.
67	(b) Each contract entered into for the sale of property
68	governed by covenants subject to the disclosure requirements of
69	this section must contain in conspicuous type a clause that
70	states:
71	IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 689.26,
72	FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE
73	PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT
74	IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER’S AGENT
75	WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS
76	AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING,
77	WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY
78	RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT SHALL
79	TERMINATE AT CLOSING.
80	(c) A contract that does not conform to the requirements
81	of this subsection is voidable by the purchaser pursuant to
82	paragraph (b).
83	(2) This section does not apply to any association
84	regulated under chapter 718, chapter 719, chapter 721, or
85	chapter 723 or to a subdivider registered under chapter 498; and
86	also does not apply if disclosure regarding the association is
87	otherwise made in connection with the requirements of chapter
88	718, chapter 719, chapter 721, or chapter 723.
89	Section 2. This act shall take effect July 1, 2003.