Final answer:
Florida Statute 720.401 requires sellers of property subject to a mandatory homeowners association to provide a disclosure summary to buyers. This summary includes vital information about association fees, responsibilities, and restrictions.
Step-by-step explanation:
Florida Statute on Disclosure Summary for Property Sales
In Florida, the statute that requires sellers of property that is part of a mandatory homeowners association to provide buyers with a disclosure summary is Florida Statute 720.401. This law mandates that the seller must give the prospective buyer a disclosure summary that outlines key details about the homeowners association's governance, fees, and assessments. The importance of this statute is to ensure that buyers are well-informed about the homeowners association they will be joining before completing the purchase of their home.
The disclosure summary should include information such as the amount of the current regular and special assessments, the association's responsibility for maintaining amenities and infrastructure, and whether there are any outstanding capital expenditures that are planned. The required disclosure also informs the buyer about the governing documents of the association and if there are any restrictions, such as the inability to rent the property. This ensures transparency and prevents future disputes between the homeowners association and property owners.