\n<\/div><\/div>\n<\/div>\n<\/div>\n

By Meredith Caruso<\/div><\/div>\n

Fla. has different types of property owners\u2019 associations but they are governed by different laws. Sometimes the rules are the same; often they are not.<\/p>\n<\/div>\n

ORLANDO, Fla. \u2013 Many Florida properties are subject to various types of property owners\u2019 associations. The main two types you\u2019re likely familiar with are homeowners\u2019 associations (HOAs) and condominium associations. While they\u2019re both a type of property owner\u2019s association, they\u2019re not governed by the same laws. In fact, there are several major differences.<\/p>\n

However, this article focuses on only one element within the different two statutes: The specific information that must be provided to the buyer. (It does not address developer disclosures, just non-developers, i.e. sellers.) It explains the information you need to gather, when<\/em> you should get this information together and why<\/em> it\u2019s a good idea to start early!<\/p>\n

Note: Legal Hotline calls often start out with the member referring to an HOA issue when they\u2019re really referring to a condo association. It\u2019s important to make sure you\u2019re referring to the property type of association for the property. The laws are different, and calling the association by the wrong name can only lead to confusion.<\/p>\n

Homeowners Associations (HOAs)<\/strong><\/h4>\n
\u00a0<\/span>As I noted earlier, there are differences between these two types of property owners\u2019 associations. One of the biggest we hear about on Florida Realtors Legal Hotline centers on what information a buyer is entitled to receive if purchasing property in an HOA community.<\/p>\n
Guess what? Purchasers of a property subject to an HOA aren\u2019t entitled to receive the same things as a purchaser of property subject to a condo association. So let\u2019s break down what a buyer should receive if purchasing property subject to a homeowners association.<\/p>\n
Many callers assume that HOA buyers are entitled to all<\/em> association documents. Unfortunately, current law doesn\u2019t require a set list of items. Under HOA law, specifically Florida Statute 720.401, a buyer is entitled to what is called a \u201cdisclosure summary.\u201d This summary provides various notices about the types of assessments the buyer may be subject to paying in the event the buyer purchases the property. There are blanks for the seller to complete with regards to assessments (i.e. monthly, annually), special assessments, and\/or land use fees, if applicable.<\/p>\n
Condominium associations<\/strong><\/h4>\n
\u00a0<\/span>Condo associations, however, do<\/em> have a set list of documents that the buyer is entitled to receive at the seller\u2019s expense. Pursuant to Florida Statute 718.503(2), \u201ceach prospective purchaser who has entered into a contract for the purchase of a condominium unit is entitled, at the seller\u2019s expense, to a current copy of the declaration of condominium, articles of incorporation of the association, bylaws and rules of the association, financial information required by s.\u00a0<\/span><\/span>718.111<\/span><\/a>, and the document entitled \u201cFrequently Asked Questions and Answers\u201d required by s.\u00a0<\/span>718.504<\/span><\/a>.\u201d<\/span><\/p>\n
\u00a0Additionally, the prospective purchaser shall also be entitled to receive from the seller a copy of a governance form, which is available from the Division of Condominiums, Timeshares and Mobile Homes of the DBPR. <\/span><\/p>\n
Things to note and best practices<\/strong><\/h4>\n
\u00a0<\/span>Notice I said above that this covers what buyer is entitled<\/em> to receive, not what buyer may want<\/em> to receive. The two Florida Realtors\u2019 residential contracts have an HOA and condo rider\/addendum that includes lines for additional information outside of that required by Chapter 718 and 720 of the Florida Statutes. The addendum includes, but is not limited to, applicable boat slip and parking spot info, as well as contact information for any management company for the association.<\/p>\n
If you\u2019re representing a buyer subject to some type of association oversight, it\u2019s important to recognize the difference between the two statutes governing the types of property owners\u2019 associations. Should a buyer want additional documents from the association, a buyer can certainly request this in his or her offer.<\/p>\n
If you\u2019re representing a buyer purchasing property subject to a condo association, stress the importance of reviewing the received documents carefully. A buyer will be subject to the condo association\u2019s rules and regulations should they close on the property, and saying \u201cI didn\u2019t know that rule\u201d likely won\u2019t be a valid excuse if the information was in documents the buyer received before closing.<\/p>\n
On the other hand, if you\u2019re representing a seller of property subject to a property owner\u2019s association, my advice is to start early. What do I mean? Don\u2019t start gathering the information and documents your seller needs to give to the buyer once they\u2019ve gone under contract. A savvy listing agent knows at the time they enter a listing agreement what documents\/information needs to be gathered, and they\u2019ll start the ball rolling then. Many associations have these documents available online and sellers have immediate access. Other associations may need additional time so, again, it\u2019s best to start early and not wait to ask for the information.
\nFar too many calls to the Legal Hotline come from stressed agents, panicked that either their buyer hasn\u2019t received any documents\/information or their seller can\u2019t get access to them in enough time. Don\u2019t be in this position! At the risk of signing off in the same way I usually do, prepare in advance. Take potential issues off the table and get to closing as smoothly as possible.<\/p>\n
Meredith Caruso is Associate General Counsel for Florida Realtors<\/em><\/p>\n
Note: Advice deemed accurate on date of publication<\/p>\n
\u00a9 2022 Florida Realtors\u00ae<\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: izaakh<\/p>\n","protected":false},"excerpt":{"rendered":"
By Meredith Caruso Fla. has different types of property owners\u2019 associations but they are governed by different laws. Sometimes the rules are the same; often they are not. ORLANDO, Fla. \u2013 Many Florida properties are subject to various types of property owners\u2019 associations. The main two types you\u2019re likely familiar with are homeowners\u2019 associations (HOAs) and condominium associations. While they\u2019re both a type of property owner\u2019s association, they\u2019re not governed by the same laws. In fact, there are several major differences. However, this article focuses on only one element within the different two statutes: The specific information that must be provided to the buyer. (It does not address developer disclosures, just non-developers, i.e. sellers.) It explains the information you need to gather, when you should get this information together and why it\u2019s a good idea to start early! Note: Legal Hotline calls often start out with the member referring to an HOA issue when they\u2019re really referring to a condo association. It\u2019s important to make sure you\u2019re referring to the property type of association for the property. The laws are different, and calling the association by the wrong name can only lead to confusion. Homeowners Associations (HOAs) \u00a0As I noted earlier, there are differences between these two types of property owners\u2019 associations. One of the biggest we hear about on Florida Realtors Legal Hotline centers on what information a buyer is entitled to receive if purchasing property in an HOA community. Guess what? Purchasers of a property subject to an HOA aren\u2019t entitled to receive the same things as a purchaser of property subject to a condo association. So let\u2019s break down what a buyer should receive if purchasing property subject to a homeowners association. Many callers assume that HOA buyers are entitled to all association documents. Unfortunately, current law doesn\u2019t require a set list of items. Under HOA law, specifically Florida Statute 720.401, a buyer is entitled to what is called a \u201cdisclosure summary.\u201d This summary provides various notices about the types of assessments the buyer may be subject to paying in the event the buyer purchases the property. There are blanks for the seller to complete with regards to assessments (i.e. monthly, annually), special assessments, and\/or land use fees, if applicable. Condominium associations \u00a0Condo associations, however, do have a set list of documents that the buyer is entitled to receive at the seller\u2019s expense. Pursuant to Florida Statute 718.503(2), \u201ceach prospective purchaser who has entered into a contract for the purchase of a condominium unit is entitled, at the seller\u2019s expense, to a current copy of the declaration of condominium, articles of incorporation of the association, bylaws and rules of the association, financial information required by s.\u00a0718.111, and the document entitled \u201cFrequently Asked Questions and Answers\u201d required by s.\u00a0718.504.\u201d \u00a0Additionally, the prospective purchaser shall also be entitled to receive from the seller a copy of a governance form, which is available from the Division of Condominiums, Timeshares and Mobile Homes of the DBPR. Things to note and best practices \u00a0Notice I said above that this covers what buyer is entitled to receive, not what buyer may want to receive. The two Florida Realtors\u2019 residential contracts have an HOA and condo rider\/addendum that includes lines for additional information outside of that required by Chapter 718 and 720 of the Florida Statutes. The addendum includes, but is not limited to, applicable boat slip and parking spot info, as well as contact information for any management company for the association. If you\u2019re representing a buyer subject to some type of association oversight, it\u2019s important to recognize the difference between the two statutes governing the types of property owners\u2019 associations. Should a buyer want additional documents from the association, a buyer can certainly request this in his or her offer. If you\u2019re representing a buyer purchasing property subject to a condo association, stress the importance of reviewing the received documents carefully. A buyer will be subject to the condo association\u2019s rules and regulations should they close on the property, and saying \u201cI didn\u2019t know that rule\u201d likely won\u2019t be a valid excuse if the information was in documents the buyer received before closing. On the other hand, if you\u2019re representing a seller of property subject to a property owner\u2019s association, my advice is to start early. What do I mean? Don\u2019t start gathering the information and documents your seller needs to give to the buyer once they\u2019ve gone under contract. A savvy listing agent knows at the time they enter a listing agreement what documents\/information needs to be gathered, and they\u2019ll start the ball rolling then. Many associations have these documents available online and sellers have immediate access. Other associations may need additional time so, again, it\u2019s best to start early and not wait to ask for the information. Far too many calls to the Legal Hotline come from stressed agents, panicked that either their buyer hasn\u2019t received any documents\/information or their seller can\u2019t get access to them in enough time. Don\u2019t be in this position! At the risk of signing off in the same way I usually do, prepare in advance. Take potential issues off the table and get to closing as smoothly as possible. Meredith Caruso is Associate General Counsel for Florida Realtors Note: Advice deemed accurate on date of publication \u00a9 2022 Florida Realtors\u00ae Go to Source Author: izaakh<\/p>\n","protected":false},"author":4,"featured_media":6109,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6108"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=6108"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/6109"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=6108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=6108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=6108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}