Florida Senate - 2019 SB 1254
By Senator Torres
15-01019-19 20191254__
1 A bill to be entitled
2 An act relating to dependent special districts;
3 creating s. 189.023, F.S.; requiring certain
4 prospective buyers to receive a disclosure summary
5 before closing on a contract for the purchase of
6 property in a dependent special district; specifying
7 contents of the disclosure summary; requiring that
8 certain contracts contain specified information;
9 specifying circumstances under which a sales contract
10 may be voided by a buyer; creating s. 189.024, F.S.;
11 authorizing purchasers of property within a dependent
12 special district to rescind a sales contract or
13 collect damages from the developer under specified
14 conditions; specifying the length of time for which
15 such right applies; authorizing the prevailing party
16 to recover reasonable attorney fees; prohibiting
17 expenditure of specified funds in defense of an
18 action; providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Section 189.023, Florida Statutes, is created to
23 read:
24 189.023 Prospective purchaser subject to dependent special
25 district membership; disclosure required; assessments; contract
26 cancellation.—
27 (1)(a) Before a contract for the sale of property in a
28 community within the jurisdiction of a dependent special
29 district may be executed, the prospective parcel owner must be
30 presented a disclosure summary regarding the property. The
31 disclosure summary must be in a form substantially similar to
32 the following form:
33
34 DISCLOSURE SUMMARY
35 FOR
36 (NAME OF COMMUNITY)
37 1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
38 BE OBLIGATED TO BE A MEMBER OF THE [INSERT NAME OF THE DEPENDENT
39 SPECIAL DISTRICT].
40 2. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
41 DISTRICT. THE ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
42 APPLICABLE, THE CURRENT AMOUNT OF THE ASSESSMENT IS $.... PER
43 .....
44 3. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
45 RESPECTIVE MUNICIPALITY OR COUNTY. ALL SPECIAL ASSESSMENTS ARE
46 SUBJECT TO PERIODIC CHANGE.
47 4. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
48 LEVIED BY THE DISTRICT COULD RESULT IN A LIEN ON YOUR PROPERTY.
49 5. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
50 ONLY SUMMARY IN NATURE, AND AS A PROSPECTIVE PURCHASER, YOU
51 SHOULD REFER TO THE COVENANTS AND THE DISTRICT GOVERNING
52 DOCUMENTS BEFORE PURCHASING PROPERTY.
53 6. THESE DOCUMENTS ARE MATTERS OF PUBLIC RECORD AND CAN BE
54 OBTAINED FROM THE RECORD OFFICE IN THE COUNTY IN WHICH THE
55 PROPERTY IS LOCATED.
56
57 DATE:
58 PURCHASER:
59
60 (b) The disclosure must be supplied by the developer, or by
61 the parcel owner if the sale is by an owner that is not the
62 developer. Any contract or agreement for sale must refer to and
63 incorporate the disclosure summary and must include, in
64 conspicuous type, a statement that the potential buyer should
65 not execute the contract or agreement until he or she has
66 received and read the disclosure summary required by this
67 section.
68 (2) Each contract entered into for the sale of property
69 governed by covenants subject to disclosure required by this
70 section must contain in conspicuous type a clause that states:
71
72 IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 189.023,
73 FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE
74 PROSPECTIVE PURCHASER BEFORE THIS CONTRACT FOR SALE
75 HAS BEEN EXECUTED, THIS CONTRACT IS VOIDABLE BY THE
76 BUYER BY DELIVERING TO THE SELLER OR SELLER’S AGENT OR
77 REPRESENTATIVE WRITTEN NOTICE WITHIN 3 DAYS AFTER
78 RECEIPT OF THE DISCLOSURE SUMMARY OF THE BUYER’S
79 INTENT TO VOID THE CONTRACT. ANY PURPORTED WAIVER OF
80 THIS VOIDABILITY RIGHT HAS NO EFFECT. A BUYER’S RIGHT
81 TO VOID THIS CONTRACT FOR REASONS OTHER THAN FAILURE
82 OF THE BUYER TO RECEIVE A DISCLOSURE SUMMARY
83 TERMINATES AT CLOSING, UNLESS OTHER PROVISIONS IN THE
84 CONTRACT APPLY TO EXTEND A TERMINATION RIGHT.
85
86 (3) If the disclosure summary is not provided to a
87 prospective purchaser before the purchaser executes a contract
88 for the sale of property within the jurisdiction of a dependent
89 special district pursuant to this section, the purchaser may
90 void the contract by delivering to the seller or the seller’s
91 agent or representative written notice canceling the contract
92 within 3 days after receipt of the disclosure summary. This
93 right may not be waived by the purchaser. A buyer’s right to
94 void this contract for reasons other than failure of the buyer
95 to receive the disclosure statement terminates at closing,
96 unless other provisions in the contract apply to extend a
97 termination right.
98 Section 2. Section 189.024, Florida Statutes, is created to
99 read:
100 189.024 Publication of false and misleading information.—
101 (1) A person who, in reasonable reliance upon any material
102 statement or information that is false or misleading and
103 published by or under authority from the developer in
104 advertising and promotional materials, including a contract of
105 purchase, declaration of covenants, exhibits to a declaration of
106 covenants, brochures, and newspaper advertising, pays anything
107 of value toward the purchase of a parcel in a community within
108 the jurisdiction of a dependent special district has a cause of
109 action to rescind the contract or collect damages from the
110 developer for his or her loss before the closing of the
111 contract. After the closing of the contract, the purchaser has a
112 cause of action against the developer for damages under this
113 section from the date of closing until 1 year after the date
114 upon which the last of the events described in this subsection
115 occurs:
116 (a) The closing of the transaction;
117 (b) The issuance by the applicable governmental authority
118 of a certificate of occupancy or other evidence of sufficient
119 completion of construction of the purchaser’s residence to allow
120 lawful occupancy of the residence by the purchaser. In counties
121 or municipalities in which certificates of occupancy or other
122 evidences of completion that are sufficient to allow lawful
123 occupancy are not customarily issued, for purposes of this
124 section, evidence of lawful occupancy is deemed to be given or
125 issued upon the date that such lawful occupancy of the residence
126 is authorized under prevailing applicable laws, ordinances, or
127 statutes;
128 (c) The completion by the developer of the common areas and
129 recreational facilities that the developer is obligated to
130 complete or provide under the terms of the written contract,
131 governing documents, or written agreement for purchase or lease
132 of the parcel; or
133 (d) If there is no written contract or agreement for sale
134 or lease of the parcel, the completion by the developer of the
135 common areas and recreational facilities that the developer
136 would be obligated to complete or provide under any rule of law
137 applicable to the developer’s obligation.
138
139 A cause of action created or recognized under this section may
140 not survive more than 5 years after the closing of the
141 transaction.
142 (2) In any action for relief under this section, the
143 prevailing party may recover reasonable attorney fees. A
144 developer may not expend community or special district funds in
145 the defense of any action under this section.
146 Section 3. This act shall take effect July 1, 2019.