The 2023 Florida Statutes (including Special Session C)

Title XL
REAL AND PERSONAL PROPERTY

Chapter 720
HOMEOWNERS' ASSOCIATIONS

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F.S. 720.401

720.401 Prospective purchasers subject to association membership requirement; disclosure required; covenants; assessments; contract cancellation.—

(1)(a) A prospective parcel owner in a community must be presented a disclosure summary before executing the contract for sale. The disclosure summary must be in a form substantially similar to the following form:

DISCLOSURE SUMMARY
FOR
(NAME OF COMMUNITY)

1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION.

2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY.

3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $ PER . YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $ PER .

4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.

5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A LIEN ON YOUR PROPERTY.

6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $ PER .

7. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.

8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING DOCUMENTS BEFORE PURCHASING PROPERTY.

9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED FROM THE DEVELOPER.

DATE: PURCHASER:

PURCHASER:

The disclosure must be supplied by the developer, or by the parcel owner if the sale is by an owner that is not the developer. Any contract or agreement for sale shall refer to and incorporate the disclosure summary and shall include, in prominent language, a statement that the potential buyer should not execute the contract or agreement until they have received and read the disclosure summary required by this section.

(b) Each contract entered into for the sale of property governed by covenants subject to disclosure required by this section must contain in conspicuous type a clause that states:

IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER’S AGENT OR REPRESENTATIVE WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER’S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING.

(c) If the disclosure summary is not provided to a prospective purchaser before the purchaser executes a contract for the sale of property governed by covenants that are subject to disclosure pursuant to this section, the purchaser may void the contract by delivering to the seller or the seller’s agent or representative written notice canceling the contract within 3 days after receipt of the disclosure summary or prior to closing, whichever occurs first. This right may not be waived by the purchaser but terminates at closing.

(2) This section does not apply to any association regulated under chapter 718, chapter 719, chapter 721, or chapter 723; and also does not apply if disclosure regarding the association is otherwise made in connection with the requirements of chapter 718, chapter 719, chapter 721, or chapter 723.

History.—s. 40, ch. 92-49; s. 63, ch. 95-274; s. 4, ch. 98-261; s. 1, ch. 2003-48; s. 25, ch. 2004-345; s. 21, ch. 2004-353; s. 63, ch. 2008-240.

Note.—Former s. 689.26.

F.S. 720.401 on Google Scholar

F.S. 720.401 on Casetext

Amendments to 720.401

Arrestable Offenses / Crimes under Fla. Stat. 720.401

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 720.401.

Annotations, Discussions, Cases:

Cases from cite.case.law:

TEMPEL A. v. SOUTHERN HOMES OF PALM BEACH, L. L. C., 90 So. 3d 848 (Fla. Dist. Ct. App. 2012)

. . . that the disclosure summary failed to comply with the requirements of section 720.401. . . . IF APPLICABLE, THE CURRENT AMOUNT IS $_PER_ See § 720.401(l)(a)(6), Fla. Stat. (2011). . . . The Florida legislature amended section 720.401 in 2004. . . . We first consider the express language of section 720.401(a)(l)(6). . . . This is the statute that preceded section 720.401. . . .

In MONA LISA AT CELEBRATION, LLC, v. LLC, v. LLC, v. LLC, v. LLC,, 472 B.R. 582 (Bankr. M.D. Fla. 2012)

. . . . § 720.401. • Count XV — Breach of Contract. • Count XVI — Declaratory Relief. . . . Stat. § 720.401(l)(a) by failing to include a disclosure summary revealing that each plaintiffs unit . . . Therefore, § 720.401 simply does not apply. . . . The disclosure need not be in a form substantially similar to that provided in § 720.401(l)(a). . . . Stat. § 720.401(l)(a). . Id. . Fla. Stat. § 720.401(c). . Id. (emphasis added). . . .

KAUFMAN, d b a v. SWIRE PACIFIC HOLDINGS, INC. a, 836 F. Supp. 2d 1320 (S.D. Fla. 2011)

. . . of the Florida Statutes; (c) rescind the Agreements under Florida Statutes §§ 718.506, 718.503 and 720.401 . . .

PRINCETON HOMES, INC. a v. A. VIRONE,, 612 F.3d 1324 (11th Cir. 2010)

. . . not receive a disclosure summary, which they were entitled to receive pursuant to Florida Statute § 720.401 . . . receive a “disclosure summary” before executing the contract of sale pursuant to Florida Statute § 720.401 . . . Stat. § 720.401(l)(a). The Virones never received a disclosure summary. . . . Andrews Park Property Owners’ Association, and that Florida Statute § 720.401 applies. . . . Stat. § 720.401(1)(c). . . .

FLORIDA FARM, LLC, v. DEVELOPERS, LLC,, 45 So. 3d 810 (Fla. Dist. Ct. App. 2010)

. . . this appeal is whether a developer must provide a purchaser with the disclosures required by section 720.401 . . . Section 720.401(l)(a) requires that each prospective purchaser of property in a homeowners’ association . . . Section 720.401(l)(b) provides that all contracts for sale of units or property within a homeowners’ . . . the contract voidable under section 720.401(l)(c). . . . Florida Farm was thus entitled to the return of its deposit pursuant to section 720.401. . . . sought to cancel the contract because it did not receive a “Disclosure Summary” pursuant to section 720.401 . . . As such, Florida Farm claimed to be entitled to void the purchase agreement under section 720.401(l)( . . . after the receipt of the Disclosure Summary. 360 Developers argued that it was exempt from section 720.401 . . . Thus, immediately following the disclosure requirements set forth in section 720.401, subsection (2) . . . To the contrary, it specifically states that section 720.401“does not apply if disclosure regarding the . . .

PRINCETON HOMES, INC. v. M. MORGAN,, 38 So. 3d 207 (Fla. Dist. Ct. App. 2010)

. . . However, it is undisputed that Morgan never received a disclosure summary pursuant to section 720.401 . . . Section 720.401, Florida Statutes, sets forth certain disclosures that must be provided to prospective . . . Section 720.401(1)(a) provides that “[a] prospective parcel owner in a community must be presented a . . . This right may not be waived by the purchaser but terminates at closing. § 720.401(1)(c), Fla. . . . See § 720.401(l)(a), Fla. Stat. . . .

KAUFMAN, d b a v. SWIRE PACIFIC HOLDINGS, INC. a, 675 F. Supp. 2d 1148 (S.D. Fla. 2009)

. . . 501 of the Florida Statutes; (c) rescind the Agreements under Florida Statutes 718.506,718.503 and 720.401 . . .

TAPLETT, v. TRG OASIS TOWER TWO LTD. L. P. a, 755 F. Supp. 2d 1197 (M.D. Fla. 2009)

. . . Count II, encompassed by supplemental jurisdiction, alleges a violation of Florida Statute § 720.401. . . .

SHELBY HOMES AT MILLSTONE, INC. v. DaSILVA, 983 So. 2d 786 (Fla. Dist. Ct. App. 2008)

. . . . § 1701 el seq., as well as the disclosure summary requirement of section 720.401, Florida Statutes. . . .