Community Association Disclosure
Definition:
A Community Association Disclosure is a document provided to potential buyers of property located within a community governed by a homeowners’ association (HOA), condominium association, or similar organization. The disclosure informs buyers about the existence of the association, its rules, fees, and governing documents. It ensures that purchasers understand their obligations, such as paying assessments and complying with community restrictions, before completing the property transaction.
Community Association Disclosure Information
The purpose of a Community Association Disclosure is to promote transparency and protect buyers from unexpected financial or legal obligations tied to association membership. The disclosure typically outlines the association’s name, the amount and frequency of assessments, and any special fees or pending litigation. Buyers are encouraged to review the association’s declaration, bylaws, and rules before signing a purchase agreement. Failure to provide a proper disclosure may give the buyer the right to cancel the contract within a specified period. This document helps maintain fairness in community-based real estate transactions and ensures informed consent from all parties.
Florida Legal Definition
Under Florida Statutes § 720.401, sellers of property governed by a homeowners’ association are required to provide a Community Association Disclosure Summary before executing a binding contract for sale. The summary must state that the property is subject to mandatory membership in an association and that failure to pay assessments may result in a lien on the property. Similar provisions exist under Chapter 718 for condominium properties. The law aims to ensure that prospective buyers are fully aware of their rights, responsibilities, and financial obligations related to community living before purchase.
How It’s Used in Practice
In practice, the Community Association Disclosure is presented early in the property transaction process—typically before or at the time the purchase contract is signed. Real estate agents, sellers, and closing agents must ensure that the disclosure summary is delivered and acknowledged in writing by the buyer. In Florida, the buyer may have the right to cancel the contract within three days of receiving the disclosure if they do not agree to the association terms. Title companies, attorneys, and real estate professionals rely on this disclosure to verify compliance with state law and prevent disputes after closing.
Key Takeaways
- A Community Association Disclosure informs buyers that the property is subject to a homeowners’ or condominium association.
- It outlines association fees, rules, and the buyer’s financial obligations.
- Required under Florida Statutes § 720.401 for HOA properties and similar statutes for condominiums.
- Buyers have limited time to review the disclosure and may cancel if not satisfied.
- Ensures transparency, informed consent, and compliance in Florida real estate transactions.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
Trust • Experience • Results
Ready to Get Started?
Get started with Barnes Walker today.
