Q: I have a listing for a residential bank-owned property (REO). The property is in a community with a mandatory homeowners’ association (HOA). Is the disclosure summary for the community required to be part of the sale and purchase contract if the property is bank owned?
A: Yes. Section 720.401(1)(a), Florida Statutes, provides that when a residential property is located in a community with a mandatory HOA, the sale and purchase contract shall refer to and incorporate the disclosure summary. There’s no exception for bank-owned properties. In addition, Section 720.401(1)(c), Florida Statutes, provides that if the disclosure summary is not provided to a buyer before he or she executes the sale and purchase contract, the buyer may void the contract. This must be done by delivering written notice to the seller or the seller’s agent within three days after receipt of the disclosure or prior to closing, whichever occurs first. Both the Florida Realtors CRSP-13 Homeowners' Association Addendum and the Florida Realtors/Florida Bar Homeowners’ Association/Community Disclosure rider (CR-3 B) contain the required disclosure summary.