What HOA Issues Must a Seller Disclose in Florida?

Florida sellers of properties subject to homeowners association (HOA) or condominium association governance have specific disclosure obligations beyond the standard property disclosure. HOA issues can materially affect a buyer's decision and the property's value — and failing to disclose them can expose sellers to significant liability.

This post is for general informational purposes only and does not constitute legal advice.

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Florida's HOA Disclosure Requirements

Homeowners Associations (Chapter 720)

Florida Statute 720.401 requires sellers of properties subject to HOA governance to provide buyers with a disclosure summary before or at the time of contract. The disclosure must include:

• The name and contact information of the HOA
• The current monthly or annual assessment amount
• Whether the HOA has the authority to impose special assessments
• Whether there are any pending special assessments
• Whether there is any pending litigation involving the HOA
• The HOA's website address (if applicable)

The buyer has 3 days after receiving the disclosure summary to cancel the contract and receive a full refund of their deposit.

Condominium Associations (Chapter 718)

For condominiums, Florida Statute 718.503 requires sellers to provide buyers with a package of condominium documents, including:

• The declaration of condominium
• Articles of incorporation
• Bylaws and rules
• Most recent year-end financial statements
• Current budget
• Frequently asked questions and answers document

Buyers have 3 days after receiving the condo documents to cancel the contract.

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What Must Be Disclosed

Beyond the statutory requirements, sellers must disclose any HOA-related facts that materially affect the value of the property:

Pending special assessments: If the association has approved or is considering a special assessment, this must be disclosed. Special assessments can range from a few hundred dollars to tens of thousands of dollars per unit.

Reserve shortfalls: If the association's reserve fund is significantly underfunded, this is a material fact. An underfunded reserve means future special assessments are more likely.

Pending litigation: If the association is involved in litigation — whether as plaintiff or defendant — this must be disclosed. Litigation can result in special assessments and can affect the property's insurability and financing.

Delinquency rates: High delinquency rates in HOA fee payments can affect the association's financial health and the property's eligibility for conventional financing.

Building condition issues: For condominiums, any known structural issues, milestone inspection findings, or required repairs must be disclosed.

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FAQ

Does the buyer have a right to review HOA documents before closing?

Yes. Florida law gives buyers a right to review HOA and condo documents and cancel the contract within 3 days of receiving them.

Who pays for a pending special assessment — the buyer or the seller?

This is negotiable. By default, the seller pays for special assessments that have been approved before closing, and the buyer pays for assessments approved after closing. The contract should specify how pending assessments are handled.

What if I do not know about a pending special assessment?

You are only required to disclose what you know. However, you should request current financial information from the HOA before listing so you are aware of any pending issues.

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Questions about HOA disclosure requirements for your Emerald Coast property? I can help you gather the necessary documentation before listing.

— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849