HB 0611

1	A bill to be entitled
2	An act relating to conveyances of land; transferring,
3	renumbering, and amending s. 689.26, F.S.; modifying a
4	disclosure form that a prospective purchaser must receive
5	before executing a contract for sale; providing that
6	certain contracts are voidable for a specified period;
7	requiring that a purchaser provide written notice of
8	cancellation; transferring and renumbering s. 689.265,
9	F.S., relating to required financial reports of certain
10	residential subdivision developers; amending s. 498.025,
11	F.S., relating to the disposition of subdivided lands;
12	conforming cross references; providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1.  Section 689.26, Florida Statutes, is
17	transferred, renumbered as section 720.3085, Florida Statutes,
18	and amended to read:
19	720.3085 689.26  Prospective purchasers subject to
20	association membership requirement; disclosure required;
21	covenants; assessments; contract voidability.--
22	(1)(a)  A prospective parcel owner in a community must be
23	presented a disclosure summary before executing the contract for
24	sale.  The disclosure summary must be in a form substantially
25	similar to the following form:
26
27	DISCLOSURE SUMMARY
28	FOR
29	(NAME OF COMMUNITY)
30
31	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
32	(WILL) (WILL NOT) BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS'
33	ASSOCIATION.
34	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
35	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
36	COMMUNITY.
37	3.  YOU MAY (WILL) (WILL NOT) BE OBLIGATED TO PAY
38	ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO
39	PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $ _______
40	PER __________.
41	4.  YOU MAY (WILL) (WILL NOT) BE OBLIGATED TO PAY SPECIAL
42	ASSESSMENTS TO THE RESPECTIVE ASSOCIATION, MUNICIPALITY, COUNTY,
43	OR SPECIAL DISTRICT. SPECIAL ALL ASSESSMENTS MAY BE ARE SUBJECT
44	TO PERIODIC CHANGE.
45	5.4.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR
46	ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD
47	RESULT IN A LIEN ON YOUR PROPERTY.
48	6.5.  THERE MAY BE (IS) (IS NOT) AN OBLIGATION TO PAY RENT
49	OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED
50	FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS'
51	ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $ _________
52	PER ________. (If such obligation exists, then the amount of the
53	current obligation shall be set forth.)
54	7.6.  THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
55	RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED WITHOUT THE
56	APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE,
57	IF NO MANDATORY ASSOCIATION EXISTS, PARCEL OWNERS.
58	8.7.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
59	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
60	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
61	DOCUMENTS BEFORE PURCHASING PROPERTY.
62	9.8.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD
63	AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE
64	THE PROPERTY IS LOCATED OR ARE NOT RECORDED AND CAN BE OBTAINED
65	FROM THE DEVELOPER.
66
67	DATE:     PURCHASER:
68	PURCHASER:
69
70	The disclosure must be supplied by the developer, or by the
71	parcel owner if the sale is by an owner that is not the
72	developer.  Any contract or agreement for sale shall refer to
73	and incorporate the disclosure summary and shall include, in
74	prominent language, a statement that the potential buyer should
75	not execute the contract or agreement until they have received
76	and read the disclosure summary required by this section.
77	(b)  Each contract entered into for the sale of property
78	governed by covenants subject to disclosure required by this
79	section must contain in conspicuous type a clause that states:
80
81	IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.3085
82	689.26, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE
83	PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT
84	FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY
85	DELIVERING TO SELLER OR SELLER'S AGENT OR
86	REPRESENTATIVE WRITTEN NOTICE OF THE BUYER'S INTENTION
87	TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE
88	DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER
89	OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY
90	RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID THIS
91	CONTRACT SHALL TERMINATE AT CLOSING.
92
93	(c)  If the disclosure summary is not provided to a
94	prospective purchaser before the purchaser executes a contract
95	for the sale of property governed by covenants that are subject
96	to disclosure pursuant to this section, the purchaser may void
97	the contract by delivering to the seller or the seller's agent
98	or representative written notice canceling the contract within 3
99	days after receipt of the disclosure summary or prior to
100	closing, whichever occurs first. This right may not be waived by
101	the purchaser, but terminates at closing. A contract that does
102	not conform to the requirements of this subsection is voidable
103	at the option of the purchaser prior to closing.
104	(2)  This section does not apply to any association
105	regulated under chapter 718, chapter 719, chapter 721, or
106	chapter 723 or to a subdivider registered under chapter 498; and
107	also does not apply if disclosure regarding the association is
108	otherwise made in connection with the requirements of chapter
109	718, chapter 719, chapter 721, or chapter 723.
110	Section 2.  Section 689.265, Florida Statutes, is
111	transferred and renumbered as section 720.3086, Florida
112	Statutes, to read:
113	720.3086 689.265  Financial report.--In a residential
114	subdivision in which the owners of lots or parcels must pay
115	mandatory maintenance or amenity fees to the subdivision
116	developer or to the owners of the common areas, recreational
117	facilities, and other properties serving the lots or parcels,
118	the developer or owner of such areas, facilities, or properties
119	shall make public, within 60 days following the end of each
120	fiscal year, a complete financial report of the actual, total
121	receipts of mandatory maintenance or amenity fees received by
122	it, and an itemized listing of the expenditures made by it from
123	such fees, for that year.  Such report shall be made public by
124	mailing it to each lot or parcel owner in the subdivision, by
125	publishing it in a publication regularly distributed within the
126	subdivision, or by posting it in prominent locations in the
127	subdivision.  This section does not apply to amounts paid to
128	homeowner associations pursuant to chapter 617, chapter 718,
129	chapter 719, chapter 721, or chapter 723, or to amounts paid to
130	local governmental entities, including special districts.
131	Section 3.  Paragraphs (g) and (h) of subsection (2) of
132	section 498.025, Florida Statutes, are amended to read:
133	498.025  Exemptions.--
134	(2)  Except as provided in s. 498.022, the provisions of
135	this chapter do not apply to offers or dispositions of interests
136	in lots, parcels, or units contained in a recorded subdivision
137	plat, or resulting from the subdivision of land in accordance
138	with applicable local land development laws and regulations
139	pursuant to part II of chapter 163, including lots, parcels,
140	units, or interest vested under such part, if all of the
141	following conditions exist:
142	(g)  The contract for purchase or lease contains, and the
143	subdivider complies with, the following provisions:
144	1.  The purchaser must inspect the subdivided land prior to
145	the execution of the contract or lease.
146	2.  The purchaser shall have an absolute right to cancel
147	the contract or lease for any reason whatsoever for a period of
148	7 business days following the date on which the contract or
149	lease was executed by the purchaser.
150	3.  In the event the purchaser elects to cancel within the
151	period provided, all funds or other property paid by the
152	purchaser shall be refunded without penalty or obligation within
153	20 days of the receipt of the notice of cancellation by the
154	developer.
155	4.  All funds or for property paid by the purchaser shall
156	be put in escrow until closing has occurred and the lease or
157	deed has been recorded.
158	5.  Unless otherwise timely canceled, closing shall occur
159	within 180 days of the date of execution of the contract by the
160	purchaser.
161	6.  When title is conveyed, said title shall be conveyed by
162	statutory warranty deed unencumbered by any lien or mortgage
163	except for any first purchase money mortgage given by the
164	purchaser and restrictions, covenants, or easements of record.
165	7.  The subdivider presents to the purchaser the disclosure
166	required by s. 720.3085 689.26 prior to the execution of the
167	contract or lease.
168	(h)  The agreement for deed contains, and the subdivider
169	complies with, the following provisions:
170	1.  The purchaser must inspect the subdivided land prior to
171	the execution of the agreement for deed.
172	2.  The purchaser shall have an absolute right to cancel
173	the agreement for deed for any reason whatsoever for a period of
174	7 business days following the date on which the agreement for
175	deed was executed by the purchaser.
176	3.  If the purchaser elects to cancel within the period
177	provided, all funds or other property paid by the purchaser
178	shall be refunded without penalty or obligation within 20 days
179	after the receipt of the notice of cancellation by the
180	developer.
181	4.  All funds or for property paid by the purchaser shall
182	be put in escrow until the agreement for deed has been recorded
183	in the county in which the subdivision is located.
184	5.  Unless otherwise timely canceled, the agreement for
185	deed shall be recorded within 180 days after its execution by
186	the purchaser.
187	6.  Sale of lots in the subdivision shall be restricted
188	solely to residents of the state.
189	7.  The underlying mortgage or other ancillary documents
190	shall contain release provisions for the individual lot
191	purchased.
192	8.  The subdivider presents to the purchaser the disclosure
193	required by s. 720.3085 689.26 prior to the execution of the
194	agreement for deed.
195	Section 4.  This act shall take effect July 1, 2004.

CODING: Words stricken are deletions; words underlined are additions.