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Effective
January 1, 2009, a prospective purchaser is entitled -- among other
disclosures as described below -- to receive a so-called
GOVERNANCE
FORM.
This
form was published by the Division according to
FS 718.503(2).
It
summarizes the GOVERNANCE OF CONDOMINIUMS in order to help buyers to
understand how a condominium association should be governed.
718.503
Nondeveloper unit owner disclosure prior to sale
FS 718.503(2) NONDEVELOPER
DISCLOSURE.
(a) Each
unit owner who is not a developer as defined by this
chapter must comply with this subsection before the
sale of his or her unit. Each prospective purchaser
who has entered into a contract for the purchase of
a condominium unit is entitled, at the seller's
expense, to a current copy of all of the following:
1. The
declaration of condominium.
2. Articles
of incorporation of the association.
3. Bylaws
and rules of the association.
4. An
annual financial statement and annual budget of
the condominium association.
5. A
copy of the inspector-prepared summary of the
milestone inspection report as described in s. 553.899,
if applicable.
6. The
association's most recent structural integrity
reserve study or a statement that the
association has not completed a structural
integrity reserve study.
7. A
copy of the inspection report described in s. 718.301(4)(p)
and (q) for a turnover inspection performed on
or after July 1, 2023.
8. The
document entitled 'Frequently Asked Questions
and Answers" required by s. 718.504.
(b) The
prospective purchaser is also entitled to receive
from the seller a copy of a governance form. Such
form shall be provided by the division summarizing
governance of condominium associations. In addition
to such other information as the division considers
helpful to a prospective purchaser in understanding
association governance, the governance form shall
address the following subjects:
1. The
role of the board in conducting the day-to-day
affairs of the association on behalf of, and in
the best interests of, the owners.
2. The
board's responsibility to provide advance notice
of board and membership meetings.
3. The
rights of owners to attend and speak at board
and membership meetings.
4. The
responsibility of the board and of owners with
respect to maintenance of the condominium
property.
5. The
responsibility of the board and owners to abide
by the condominium documents, this chapter,
rules adopted by the division, and reasonable
rules adopted by the board.
6. Owners'
rights to inspect and copy association records
and the limitations on such rights.
7. Remedies
available to owners with respect to actions by
the board which may be abusive or beyond the
board's power and authority.
8. The
right of the board to hire a property management
firm, subject to its own primary responsibility
for such management.
9. The
responsibility of owners with regard to payment
of regular or special assessments necessary for
the operation of the property and the potential
consequences of failure to pay such assessments.
10. The
voting rights of owners.
11. Rights
and obligations of the board in enforcement of
rules in the condominium documents and rules
adopted by the board.
The governance form shall also
include the following statement in conspicuous type:
"This publication is intended as an informal
educational overview of condominium governance. In
the event of a conflict, the provisions of chapter
718, Florida Statutes, rules adopted by the Division
of Florida Condominiums, Timeshares, and Mobile
Homes of the Department of Business and Professional
Regulation, the provisions of the condominium
documents, and reasonable rules adopted by the
condominium association's board of administration
prevail over the contents of this publication."
(c) If
a person licensed under part I of chapter 475
provides to or otherwise obtains for a prospective
purchaser the documents described in this
subsection, the person is not liable for any error
or inaccuracy contained in the documents.
(d) Each
contract entered into after July 1, 1992, for the
resale of a residential unit shall contain in
conspicuous type either:
1. A
clause which states: THE BUYER HEREBY
ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A
CURRENT COPY OF THE DECLARATION OF CONDOMINIUM,
ARTICLES OF INCORPORATION OF THE ASSOCIATION,
BYLAWS AND RULES OF THE ASSOCIATION, A COPY OF
THE MOST RECENT ANNUAL FINANCIAL STATEMENT AND
ANNUAL BUDGET, AND FREQUENTLY ASKED QUESTIONS
AND ANSWERS DOCUMENT MORE THAN 3 DAYS, EXCLUDING
SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
EXECUTION OF THIS CONTRACT; or
2. A
clause which states: THIS AGREEMENT IS VOIDABLE
BY BUYER BY DELIVERING WRITTEN NOTICE OF THE
BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS,
EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS
AGREEMENT BY THE BUYER AND RECEIPT BY BUYER OF A
CURRENT COPY OF THE DECLARATION OF CONDOMINIUM,
ARTICLES OF INCORPORATION, BYLAWS AND RULES OF
THE ASSOCIATION, A COPY OF THE MOST RECENT
ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET,
AND FREQUENTLY ASKED QUESTIONS AND ANSWERS
DOCUMENT IF SO REQUESTED IN WRITING. ANY
PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS
SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME
FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3
DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
HOLIDAYS, AFTER THE BUYER RECEIVES THE
DECLARATION, ARTICLES OF INCORPORATION, BYLAWS
AND RULES OF THE ASSOCIATION, AND A COPY OF THE
MOST RECENT YEAR-END FINANCIAL INFORMATION AND
FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT
IF REQUESTED IN WRITING. BUYER'S RIGHT TO VOID
THIS AGREEMENT SHALL TERMINATE AT CLOSING.
A contract that does not conform to
the requirements of this paragraph is voidable at
the option of the purchaser prior to closing.
(e) If
the association is required to have completed a
milestone inspection as described in s. 553.899,
a turnover inspection report for a turnover
inspection performed on or after July 1, 2023, or a
structural integrity reserve study, and the
association has not completed the milestone
inspection, the turnover inspection report, or the
structural integrity reserve study, each contract
entered into after December 31, 2024, for the sale
of a residential unit shall contain in conspicuous
type a statement indicating that the association is
required to have a milestone inspection, a turnover
inspection report, or a structural integrity reserve
study and has not completed such inspection, report,
or study, as appropriate. If the association is not
required to have a milestone inspection as described
in s. 553.899 or
a structural integrity reserve study, each contract
entered into after December 31, 2024, for the sale
of a residential unit shall contain in conspicuous
type a statement indicating that the association is
not required to have a milestone inspection or a
structural integrity reserve study, as appropriate.
If the association has completed a milestone
inspection as described in s. 553.899,
a turnover inspection report for a turnover
inspection performed on or after July 1, 2023, or a
structural integrity reserve study, each contract
entered into after December 31, 2024, for the resale
of a residential unit shall contain in conspicuous
type:
1. A
clause which states: THE BUYER HEREBY
ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A
CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY
OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
IN SECTION 553.899,
FLORIDA STATUTES, IF APPLICABLE; A COPY OF THE
TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p)
AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL
INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26)
AND 718.112(2)(g), FLORIDA STATUTES, IF
APPLICABLE, MORE THAN 3 DAYS, EXCLUDING
SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
EXECUTION OF THIS CONTRACT; and
2. A
clause which states: THIS AGREEMENT IS VOIDABLE
BY BUYER BY DELIVERING WRITTEN NOTICE OF THE
BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS,
EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS
AGREEMENT BY THE BUYER AND RECEIPT BY BUYER OF A
CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY
OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
IN SECTION 553.899,
FLORIDA STATUTES, IF APPLICABLE; A COPY OF THE
TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p)
AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL
INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26)
AND 718.112(2)(g), FLORIDA STATUTES, IF
APPLICABLE. ANY PURPORTED WAIVER OF THESE
VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS,
SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER
RECEIVES A CURRENT COPY OF THE
INSPECTOR-PREPARED SUMMARY OF THE MILESTONE
INSPECTION REPORT AS DESCRIBED IN SECTION 553.899,
FLORIDA STATUTES; A COPY OF THE TURNOVER
INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p)
AND (q), FLORIDA STATUTES; OR A COPY OF THE
ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY
RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26)
AND 718.112(2)(g), FLORIDA STATUTES, IF
REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS
AGREEMENT SHALL TERMINATE AT CLOSING.
A contract that does not conform to
the requirements of this paragraph is voidable at
the option of the purchaser prior to closing.
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