Who Must Tell Buyer about Deed Restrictions?
Most of the newer communities in Venice, Florida have homeowner associations (HOA) with governing guidelines – see Chapter 720, Florida Statutes. Who must tell buyer about deed restrictions? The seller, the seller’s agent, the buyer’s agent or the association?
If the buyer was not properly informed, whose responsibility will that be? In any real estate transaction the seller has the responsibility for the “disclosure summary” – Section 720.401 Florida Statutes.
When the property is listed, the listing agent has the seller answer all the questions in the (1) Homeowners’ Association/Community Disclosure and (2) Seller’s Real Property Disclosure Statement with the date and seller’s signature.
Even if the seller never lived at the property before e.g. inherited or rental property or the transaction is without any REALTOR®/real estate agent involved e.g. For Sale by Owner. The seller must inform and provide the disclosure summary on the deed restriction of a Homeowner’s Association/Community to the buyer.
Deed Restrictions Disclosure Summary – Section 720.401
If the disclosure summary required by Section 720.401, Florida Statutes, has not been provided to the prospective purchaser before executing this contract for sale, this contract is voidable by buyer by delivering to seller or seller’s agent written notice of the buyer’s intention to cancel 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. Buyer’s right to void this contract shall terminate at closing.
Buyer should not execute this contract until buyer has received and read this disclosure.
1. Buyer will be obligated to be a member of a Homeowners’ Association.
2. There will be recorded restrictive covenants governing the use and occupancy of properties in the community.
3. Buyer will be obligated to pay assessments to the association. Assessments may be subject to periodic change
4. Buyer may be obligated to pay special assessments to the respective municipality, county or special district. All assessments are subject to periodic change. Failure to pay special assessments or assessments levied by a mandatory homeowners’ association could result in a lien on the property.
5. There may be an obligation to pay fees for recreational or other commonly used facilities as an obligation of membership in the Homeowners’ Association.
6. The developer may have the right to amend the restrictive covenants without the approval or the association membership or the approval of the parcel owners.
7. Prospective buyer should refer to the covenants and the association governing documents before purchasing property.
8. Documents can be obtained from the Record office in the county where the property is located (or if not recorded can be obtained from the developer.)
9. Buyer make sure you review the up-to-date Homeowners’ Association’s financial statement and budget – be sure it has sound reserved funds.
Reason has REALTOR®’s representation
Seller may not know the disclosure requirements, however the REALTOR® should. That’s the reason why sellers and buyers need an agent to help them with their real estate transaction before selling or buying, so that the REALTOR® may take care of the details.
This information is provided by Kwee Huset of Kwee Huset Realty. It is not legal advice to anyone, and may be subject to change.
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