Florida Real Estate Broker ExaminationReal Estate Law and RegulationsMedium
A Florida real estate broker is representing a buyer interested in a property that is located within a community governed by a homeowners' association (HOA). The buyer has expressed concerns about the HOA's rules and financial stability. According to Florida Statute 720, what is the seller's primary obligation regarding HOA documents?
- AThe seller is only required to disclose whether the property is subject to an HOA, and the buyer is responsible for obtaining all documents.
- BThe seller must provide the buyer with a current copy of the declaration of covenants, articles of incorporation, bylaws, and rules of the HOA, along with a disclosure summary.
- CThe seller must provide the buyer with a full copy of all HOA documents within 3 days of contract execution, at the seller's expense.
- DThe seller must provide a certificate from the HOA stating that all assessments are current, but is not obligated to provide governing documents.
Show answer & explanationAnswer & explanation
Correct answer: B. The seller must provide the buyer with a current copy of the declaration of covenants, articles of incorporation, bylaws, and rules of the HOA, along with a disclosure summary.
Florida Statute 720 mandates that sellers of property subject to a homeowners' association provide specific documents, including the declaration of covenants, articles of incorporation, bylaws, rules, and a disclosure summary, to the prospective buyer.
Why the other options are wrong
- A. This is incorrect; the seller has a statutory obligation to provide specific documents, not just a disclosure of HOA existence.
- C. While important, the specific documents and timing are not entirely accurate as per F.S. 720. The disclosure summary with right of rescission is key.
- D. Providing a certificate of current assessments is part of the process, but it does not fulfill the seller's primary obligation to provide the governing documents and disclosure summary.
HOA Document Disclosure (Florida)
In Florida, sellers of property subject to a homeowners' association must provide prospective buyers with specific HOA governing documents and a disclosure summary, granting the buyer a right to cancel the contract if not received.
- Applies to properties governed by F.S. 720 (HOAs), not F.S. 718 (condominiums).
- Seller must provide declaration, articles, bylaws, rules, and a disclosure summary.
- Buyer has a right to void the contract if disclosures are not timely received.
Memory trick: HOA: Home Owners Always Disclose Accurately