COURTESY : Daily Commercial
By Megan Shannon
Published February 18, 2006

THE VILLAGES -- The Property Owners’ Association of The Villages is championing a bill that would ensure homebuyers have plenty of information before sealing the deal.

Property Owners Association President Joe Gorman said articles concerning sales agents’ disclosure to potential homeowners in Florida Statute Chapter 190 are too general. He and other POA directors drafted the reform bill, which they sent to Senator Carey Baker and State Representative Hugh Gibson.

“People are never told what they are responsible for financially until it is too late in the transaction or sometimes after the home is bought. Some people don’t know they have to pay for cart path maintenance or roadway maintenance until it’s a done deal,” Gorman said. “It (the CDD statute) is a very good bill, but it needs to be tweaked.”

Gibson said he is reviewing the bill and plans to talk to others in the House and Senate about considering it. Baker said he already took the bill to Tallahassee. He said that bill and 55 others he is sponsoring will be reviewed next week.

Gorman said The Villages are doing a great service to the residents by offering CDD government school, but that information is conveyed after the property has been purchased. He said the flaw lies in the statute.

If the bill is passed, sales agents will have to give full disclosure within 10 days prior to closing or when the buyer first shows serious interest in property. It would be mandatory for the agent to tell the potential homeowner of any unsightly or troublesome characteristic within 10 miles of the property, a reasonable estimate of taxes, assessments, or bond obligations they would be responsible for, and any agreement that could have a current or potential financial impact on them.

The bill also requires receipt of disclosure to make sure every sales agent is following the rules. Gorman said he is not sure what the sales office currently has in place to monitor what is being told to potential residents.

Gorman said the statute does not provide for any punishment if the CDD or sales agent does not comply with disclosure laws.

“Many complaints in the past refer to sellers or sales agents not following proper procedures, or, at the worst, actually misleading prospective buyers on disclosure issues,” the reform bill reads.

“There should be a punishment for this kind of behavior,” Gorman said. “These laws are weakened without punishment.”

The POA’s recommendation, as listed in the reform bill, is a penalty fine of at least $2,500 for each violation and a maximum fine of $10,000 should be installed.

A $50,000 fine was also recommended if the developer or sales agents fail to submit an annual report of disclosure. Right now the statute provides no requirement for an annual report. This recommendation was also made in the reform bill.

Another reform bill was also submitted by the POA concerning disclosure any public financing such as maintenance and improvements by the district. This bill not only concerns potential homeowners but the existing residents as well.

“Existing and prospective residents and initial prospective purchasers are not familiar enough with Florida law or CDDs to know to ask for this information,” Gorman wrote in an e-mail.

Next week the POA directors plan to send e-mails to 1,000 members of the POA asking them to contact Gibson and Baker. More than 1,500 Villages residents are members of the POA but Gorman said some people don’t have e-mail. Representatives for the Cyber Citizens For Justice, who the POA has been affiliated with, will also send a similar e-mail to all of their members.

Community Relations Officer Gary Lester did not return calls about Villages sales office practices.