HB 0611 2004
1	A bill to be entitled
2	An act relating to conveyances of land; transferring,
3	renumbering, and amending s. 689.26, F.S.; providing that
4	certain contracts are voidable for a specified period;
5	requiring that a purchaser provide written notice of
6	cancellation; transferring and renumbering s. 689.265,
7	F.S., relating to required financial reports of certain
8	residential subdivision developers; amending s. 498.025,
9	F.S., relating to the disposition of subdivided lands;
10	conforming cross-references; providing an effective date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1. Section 689.26, Florida Statutes, is
15	transferred, renumbered as section 720.3085, Florida Statutes,
16	and amended to read:
17	720.3085 689.26Prospective purchasers subject to
18	association membership requirement; disclosure required;
19	covenants; assessments; contract voidability.--
20	(1)(a) A prospective parcel owner in a community must be
21	presented a disclosure summary before executing the contract for
22	sale. The disclosure summary must be in a form substantially
23	similar to the following form:
24
25	DISCLOSURE SUMMARY
26	FOR
27	(NAME OF COMMUNITY)
28
29	1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU
30	(WILL) (WILL NOT) BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS'
31	ASSOCIATION.
32	2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
33	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
34	COMMUNITY.
35	3. YOU (WILL) (WILL NOT) BE OBLIGATED TO PAY ASSESSMENTS
36	TO THE ASSOCIATION. YOU (WILL) (WILL NOT) BE OBLIGATED TO PAY
37	SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR
38	SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC
39	CHANGE.
40	4. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
41	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD RESULT IN A
42	LIEN ON YOUR PROPERTY.
43	5. THERE (IS) (IS NOT) AN OBLIGATION TO PAY RENT OR LAND
44	USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS
45	AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. (If
46	such obligation exists, then the amount of the current
47	obligation shall be set forth.)
48	6. THE RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED
49	WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR, IF NO
50	MANDATORY ASSOCIATION EXISTS, PARCEL OWNERS.
51	7. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
52	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
53	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
54	DOCUMENTS BEFORE PURCHASING PROPERTY.
55	8. THESE DOCUMENTS ARE MATTERS OF PUBLIC RECORD AND CAN BE
56	OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY
57	IS LOCATED.
58
59	DATE: PURCHASER:
60	PURCHASER:
61
62	The disclosure must be supplied by the developer, or by the
63	parcel owner if the sale is by an owner that is not the
64	developer. Any contract or agreement for sale shall refer to
65	and incorporate the disclosure summary and shall include, in
66	prominent language, a statement that the potential buyer should
67	not execute the contract or agreement until they have received
68	and read the disclosure summary required by this section.
69	(b) Each contract entered into for the sale of property
70	governed by covenants subject to disclosure required by this
71	section must contain in conspicuous type a clause that states:
72
73	IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.3085
74	689.26, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE
75	PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT
76	FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY
77	DELIVERING TO SELLER OR SELLER'S AGENT OR
78	REPRESENTATIVEWRITTEN NOTICE OF THE BUYER'S INTENTION
79	TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE
80	DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER
81	OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY
82	RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID THIS
83	CONTRACT SHALL TERMINATE AT CLOSING.
84
85	(c) If the disclosure summary is not provided to a
86	prospective purchaser before the purchaser executes a contract
87	for the sale of property governed by covenants that are subject
88	to disclosure pursuant to this section, the purchaser may void
89	the contract by delivering to the seller or the seller's agent
90	or representative written notice canceling the contract within 3
91	days after receipt of the disclosure summary or prior to
92	closing, whichever occurs first. This right may not be waived by
93	the purchaser, but terminates at closing. A contract that does
94	not conform to the requirements of this subsection is voidable
95	at the option of the purchaser prior to closing.
96	(2) This section does not apply to any association
97	regulated under chapter 718, chapter 719, chapter 721, or
98	chapter 723 or to a subdivider registered under chapter 498; and
99	also does not apply if disclosure regarding the association is
100	otherwise made in connection with the requirements of chapter
101	718, chapter 719, chapter 721, or chapter 723.
102	Section 2. Section 689.265, Florida Statutes, is
103	transferred and renumbered as section 720.3086, Florida
104	Statutes, to read:
105	720.3086 689.265Financial report.--In a residential
106	subdivision in which the owners of lots or parcels must pay
107	mandatory maintenance or amenity fees to the subdivision
108	developer or to the owners of the common areas, recreational
109	facilities, and other properties serving the lots or parcels,
110	the developer or owner of such areas, facilities, or properties
111	shall make public, within 60 days following the end of each
112	fiscal year, a complete financial report of the actual, total
113	receipts of mandatory maintenance or amenity fees received by
114	it, and an itemized listing of the expenditures made by it from
115	such fees, for that year. Such report shall be made public by
116	mailing it to each lot or parcel owner in the subdivision, by
117	publishing it in a publication regularly distributed within the
118	subdivision, or by posting it in prominent locations in the
119	subdivision. This section does not apply to amounts paid to
120	homeowner associations pursuant to chapter 617, chapter 718,
121	chapter 719, chapter 721, or chapter 723, or to amounts paid to
122	local governmental entities, including special districts.
123	Section 3. Paragraphs (g) and (h) of subsection (2) of
124	section 498.025, Florida Statutes, are amended to read:
125	498.025 Exemptions.--
126	(2) Except as provided in s. 498.022, the provisions of
127	this chapter do not apply to offers or dispositions of interests
128	in lots, parcels, or units contained in a recorded subdivision
129	plat, or resulting from the subdivision of land in accordance
130	with applicable local land development laws and regulations
131	pursuant to part II of chapter 163, including lots, parcels,
132	units, or interest vested under such part, if all of the
133	following conditions exist:
134	(g) The contract for purchase or lease contains, and the
135	subdivider complies with, the following provisions:
136	1. The purchaser must inspect the subdivided land prior to
137	the execution of the contract or lease.
138	2. The purchaser shall have an absolute right to cancel
139	the contract or lease for any reason whatsoever for a period of
140	7 business days following the date on which the contract or
141	lease was executed by the purchaser.
142	3. In the event the purchaser elects to cancel within the
143	period provided, all funds or other property paid by the
144	purchaser shall be refunded without penalty or obligation within
145	20 days of the receipt of the notice of cancellation by the
146	developer.
147	4. All funds or forproperty paid by the purchaser shall
148	be put in escrow until closing has occurred and the lease or
149	deed has been recorded.
150	5. Unless otherwise timely canceled, closing shall occur
151	within 180 days of the date of execution of the contract by the
152	purchaser.
153	6. When title is conveyed, said title shall be conveyed by
154	statutory warranty deed unencumbered by any lien or mortgage
155	except for any first purchase money mortgage given by the
156	purchaser and restrictions, covenants, or easements of record.
157	7. The subdivider presents to the purchaser the disclosure
158	required by s. 720.3085 s. 689.26prior to the execution of the
159	contract or lease.
160	(h) The agreement for deed contains, and the subdivider
161	complies with, the following provisions:
162	1. The purchaser must inspect the subdivided land prior to
163	the execution of the agreement for deed.
164	2. The purchaser shall have an absolute right to cancel
165	the agreement for deed for any reason whatsoever for a period of
166	7 business days following the date on which the agreement for
167	deed was executed by the purchaser.
168	3. If the purchaser elects to cancel within the period
169	provided, all funds or other property paid by the purchaser
170	shall be refunded without penalty or obligation within 20 days
171	after the receipt of the notice of cancellation by the
172	developer.
173	4. All funds or forproperty paid by the purchaser shall
174	be put in escrow until the agreement for deed has been recorded
175	in the county in which the subdivision is located.
176	5. Unless otherwise timely canceled, the agreement for
177	deed shall be recorded within 180 days after its execution by
178	the purchaser.
179	6. Sale of lots in the subdivision shall be restricted
180	solely to residents of the state.
181	7. The underlying mortgage or other ancillary documents
182	shall contain release provisions for the individual lot
183	purchased.
184	8. The subdivider presents to the purchaser the disclosure
185	required by s. 720.3085 s. 689.26prior to the execution of the
186	agreement for deed.
187	Section 4. This act shall take effect July 1, 2004.