HB 0611

CS

CHAMBER ACTION

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

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