Senate Bill sb1402c1
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Florida Senate - 2004 CS for SB 1402
By the Committee on Regulated Industries; and Senator Fasano
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1 A bill to be entitled
2 An act relating to conveyances of land;
3 transferring, renumbering, and amending s.
4 689.26, F.S.; modifying the disclosure form
5 that a prospective purchaser must receive
6 before a contract for sale; providing that
7 certain contracts are voidable for a specified
8 period; requiring that a purchaser provide
9 written notice of cancellation; transferring
10 and renumbering s. 689.265, F.S., relating to
11 required financial reports of certain
12 residential subdivision developers; amending s.
13 498.025, F.S., relating to the disposition of
14 subdivided lands; conforming cross-references;
15 providing an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Section 689.26, Florida Statutes, is
20 transferred, renumbered as section 720.3085, Florida Statutes,
21 and amended to read:
22 720.3085 689.26 Prospective purchasers subject to
23 association membership requirement; disclosure required;
24 covenants; assessments; contract voidability.--
25 (1)(a) A prospective parcel owner in a community must
26 be presented a disclosure summary before executing the
27 contract for sale. The disclosure summary must be in a form
28 substantially similar to the following form:
29
30 DISCLOSURE SUMMARY
31 FOR
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Florida Senate - 2004 CS for SB 1402
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1 (NAME OF COMMUNITY)
2
3 1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU
4 WILL (WILL) (WILL NOT) BE OBLIGATED TO BE A MEMBER OF A
5 HOMEOWNERS' ASSOCIATION.
6 2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
7 COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN
8 THIS COMMUNITY.
9 3. YOU MAY (WILL) (WILL NOT) BE OBLIGATED TO PAY
10 ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO
11 PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $_____
12 PER ______.
13 4. YOU MAY (WILL) (WILL NOT) BE OBLIGATED TO PAY
14 SPECIAL ASSESSMENTS TO THE RESPECTIVE ASSOCIATION,
15 MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE
16 SUBJECT TO PERIODIC CHANGE.
17 5.4. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR
18 ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION
19 COULD RESULT IN A LIEN ON YOUR PROPERTY.
20 6.5. THERE MAY BE (IS) (IS NOT) AN OBLIGATION TO PAY
21 RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED
22 FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS'
23 ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $ ____ PER
24 ______. (If such obligation exists, then the amount of the
25 current obligation shall be set forth.)
26 7.6. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
27 RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED WITHOUT THE
28 APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE,
29 IF NO MANDATORY ASSOCIATION EXISTS, PARCEL OWNERS.
30 8.7. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM
31 ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER,
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Florida Senate - 2004 CS for SB 1402
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1 YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION
2 GOVERNING DOCUMENTS BEFORE PURCHASING PROPERTY.
3 9.8. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC
4 RECORD AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE
5 COUNTY WHERE THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND
6 CAN BE OBTAINED FROM THE DEVELOPER.
7 DATE: PURCHASER:
8 PURCHASER:
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10 The disclosure must be supplied by the developer, or by the
11 parcel owner if the sale is by an owner that is not the
12 developer. Any contract or agreement for sale shall refer to
13 and incorporate the disclosure summary and shall include, in
14 prominent language, a statement that the potential buyer
15 should not execute the contract or agreement until they have
16 received and read the disclosure summary required by this
17 section.
18 (b) Each contract entered into for the sale of
19 property governed by covenants subject to disclosure required
20 by this section must contain in conspicuous type a clause that
21 states:
22
23 IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION
24 720.3085 689.26, FLORIDA STATUTES, HAS NOT BEEN
25 PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE
26 EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT
27 IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR
28 SELLER'S AGENT OR REPRESENTATIVE WRITTEN NOTICE
29 OF THE BUYER'S INTENTION TO CANCEL WITHIN 3
30 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR
31 PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY
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Florida Senate - 2004 CS for SB 1402
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1 PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS
2 NO EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT
3 SHALL TERMINATE AT CLOSING.
4
5 (c) If the disclosure summary is not provided to a
6 prospective purchaser before the purchaser executes a contract
7 for the sale of property governed by covenants that are
8 subject to disclosure pursuant to this section, the purchaser
9 may void the contract by delivering to the seller or the
10 seller's agent or representative written notice canceling the
11 contract within 3 days after receipt of the disclosure summary
12 or prior to closing, whichever occurs first. This right may
13 not be waived by the purchaser, but terminates at closing. A
14 contract that does not conform to the requirements of this
15 subsection is voidable at the option of the purchaser prior to
16 closing.
17 (2) This section does not apply to any association
18 regulated under chapter 718, chapter 719, chapter 721, or
19 chapter 723 or to a subdivider registered under chapter 498;
20 and also does not apply if disclosure regarding the
21 association is otherwise made in connection with the
22 requirements of chapter 718, chapter 719, chapter 721, or
23 chapter 723.
24 Section 2. Section 689.265, Florida Statutes, is
25 transferred and renumbered as section 720.3086, Florida
26 Statutes, to read:
27 720.3086 689.265 Financial report.--In a residential
28 subdivision in which the owners of lots or parcels must pay
29 mandatory maintenance or amenity fees to the subdivision
30 developer or to the owners of the common areas, recreational
31 facilities, and other properties serving the lots or parcels,
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Florida Senate - 2004 CS for SB 1402
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1 the developer or owner of such areas, facilities, or
2 properties shall make public, within 60 days following the end
3 of each fiscal year, a complete financial report of the
4 actual, total receipts of mandatory maintenance or amenity
5 fees received by it, and an itemized listing of the
6 expenditures made by it from such fees, for that year. Such
7 report shall be made public by mailing it to each lot or
8 parcel owner in the subdivision, by publishing it in a
9 publication regularly distributed within the subdivision, or
10 by posting it in prominent locations in the subdivision. This
11 section does not apply to amounts paid to homeowner
12 associations pursuant to chapter 617, chapter 718, chapter
13 719, chapter 721, or chapter 723, or to amounts paid to local
14 governmental entities, including special districts.
15 Section 3. Paragraphs (g) and (h) of subsection (2) of
16 section 498.025, Florida Statutes, are amended to read:
17 498.025 Exemptions.--
18 (2) Except as provided in s. 498.022, the provisions
19 of this chapter do not apply to offers or dispositions of
20 interests in lots, parcels, or units contained in a recorded
21 subdivision plat, or resulting from the subdivision of land in
22 accordance with applicable local land development laws and
23 regulations pursuant to part II of chapter 163, including
24 lots, parcels, units, or interest vested under such part, if
25 all of the following conditions exist:
26 (g) The contract for purchase or lease contains, and
27 the subdivider complies with, the following provisions:
28 1. The purchaser must inspect the subdivided land
29 prior to the execution of the contract or lease.
30 2. The purchaser shall have an absolute right to
31 cancel the contract or lease for any reason whatsoever for a
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1 period of 7 business days following the date on which the
2 contract or lease was executed by the purchaser.
3 3. In the event the purchaser elects to cancel within
4 the period provided, all funds or other property paid by the
5 purchaser shall be refunded without penalty or obligation
6 within 20 days of the receipt of the notice of cancellation by
7 the developer.
8 4. All funds or for property paid by the purchaser
9 shall be put in escrow until closing has occurred and the
10 lease or deed has been recorded.
11 5. Unless otherwise timely canceled, closing shall
12 occur within 180 days of the date of execution of the contract
13 by the purchaser.
14 6. When title is conveyed, said title shall be
15 conveyed by statutory warranty deed unencumbered by any lien
16 or mortgage except for any first purchase money mortgage given
17 by the purchaser and restrictions, covenants, or easements of
18 record.
19 7. The subdivider presents to the purchaser the
20 disclosure required by s. 720.3085 s. 689.26 prior to the
21 execution of the contract or lease.
22 (h) The agreement for deed contains, and the
23 subdivider complies with, the following provisions:
24 1. The purchaser must inspect the subdivided land
25 prior to the execution of the agreement for deed.
26 2. The purchaser shall have an absolute right to
27 cancel the agreement for deed for any reason whatsoever for a
28 period of 7 business days following the date on which the
29 agreement for deed was executed by the purchaser.
30 3. If the purchaser elects to cancel within the period
31 provided, all funds or other property paid by the purchaser
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Florida Senate - 2004 CS for SB 1402
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1 shall be refunded without penalty or obligation within 20 days
2 after the receipt of the notice of cancellation by the
3 developer.
4 4. All funds or for property paid by the purchaser
5 shall be put in escrow until the agreement for deed has been
6 recorded in the county in which the subdivision is located.
7 5. Unless otherwise timely canceled, the agreement for
8 deed shall be recorded within 180 days after its execution by
9 the purchaser.
10 6. Sale of lots in the subdivision shall be restricted
11 solely to residents of the state.
12 7. The underlying mortgage or other ancillary
13 documents shall contain release provisions for the individual
14 lot purchased.
15 8. The subdivider presents to the purchaser the
16 disclosure required by s. 720.3085 s. 689.26 prior to the
17 execution of the agreement for deed.
18 Section 4. This act shall take effect July 1, 2004.
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20 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
21 Senate Bill 1402
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23 The committee substitute amends the disclosure form in s.
720.3085, F.S.
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