Home Sales & Disclosures
Florida HOA Disclosure Before Sale: Fla. Stat. 720.401
Florida law requires a disclosure summary before a home sale contract is signed in an HOA community. Buyers may cancel within 3 days of receiving the summary or before closing if it was not provided first.
What the law covers
Fla. Stat. 720.401 applies to a prospective parcel owner in a community. Before executing a contract for sale, the prospective owner must be presented a disclosure summary. The disclosure summary must be in a form substantially similar to the statutory form, which covers HOA membership, restrictive covenants, assessments, special assessments, possible liens, recreation fees, developer amendment rights, and where to find the governing documents. 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 for sale must refer to and incorporate the disclosure summary and include prominent language stating that the buyer should not execute the contract until they have received and read the disclosure summary.
Key requirements and limits
The contract must contain a conspicuous clause stating that if the disclosure summary was not provided before execution, the contract is voidable by the buyer. The buyer may cancel by delivering written notice to the seller or the seller’s agent or representative 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. The buyer’s right to void the contract terminates at closing. If the disclosure summary is not provided before the purchaser executes the contract, the purchaser may void the contract by delivering 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.
Notice, hearing and deadlines
The statute sets a cancellation deadline of 3 days after receipt of the disclosure summary or prior to closing, whichever occurs first. It does not describe a hearing process. The right to void terminates at closing.
Practical checklist for homeowners
- Read your governing documents
- Keep copies of notices and the disclosure summary
- Check whether the association is regulated under chapter 718, chapter 719, chapter 721, or chapter 723, because the section does not apply to those associations
- Check the official text for updates The association’s governing documents and later amendments may also apply.
Source
Fla. Stat. 720.401, official text“A prospective parcel owner in a community must be presented a disclosure summary before executing the 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”
“This right may not be waived by the purchaser but terminates at closing.”
“This section does not apply to any association regulated under chapter 718, chapter 719, chapter 721, or chapter 723”
Frequently asked questions
Must a buyer receive a disclosure summary before signing a home purchase contract in an HOA community?
Yes. Fla. Stat. 720.401 requires a prospective parcel owner to be presented a disclosure summary before executing the contract for sale.
How long does a buyer have to cancel if the disclosure summary was not provided before signing?
The buyer may cancel by written notice within 3 days after receipt of the disclosure summary or prior to closing, whichever occurs first.
Does this law apply to condominiums or other associations?
No. It does not apply to associations regulated under chapter 718, chapter 719, chapter 721, or chapter 723, or if disclosure is otherwise made under those chapters.
Can a buyer waive the right to cancel for lack of disclosure?
No. Any purported waiver of this voidability right has no effect, and the right terminates at closing.
Who must provide the disclosure summary?
The developer, or the parcel owner if the sale is by an owner that is not the developer.
This page is general legal information, not legal advice, and Harrington Community is not a law firm. Statutes are amended over time and your association's governing documents may also apply. For advice about your situation, contact a licensed attorney or your state bar's lawyer referral service.