Florida statute reference · F.S. § 720.401
§ 720.401 - HOA Disclosure to Prospective Buyers
Section 720.401 is the HOA equivalent of the condo resale disclosure under § 718.503. Sellers must deliver the statutory disclosure summary before the buyer signs the contract. Buyers get a 3-day right to cancel after receiving it. The mechanic looks simple, but FSBO transactions and incomplete disclosures create a steady stream of post-closing claims.
Reviewed by the Common Elements editorial team, which includes a Florida-licensed community association manager (LCAM) and insurance broker - Florida Licensed Community Association Manager, 2-20 & 6-20.
What boards, sellers, and agents need to know
The HOA disclosure summary is a state-issued one-page document that flags the most important obligations of HOA ownership: the existence of the association, the mandatory assessment, the existence of any restrictive covenants, the existence of any rental restrictions, and the buyer's right to obtain a copy of the recorded governing documents. It is not the governing documents themselves - those usually come later, often as part of due diligence or at closing.
Timing is everything. The disclosure summary must be delivered before the contract is signed. Sellers who deliver at closing have effectively given the buyer an open cancellation right until delivery occurs. Agent-represented transactions using the FR/Bar contract handle this automatically - the disclosure summary is built into the contract form. FSBO deals frequently miss it, and post-closing rescission claims are not uncommon.
The association's role is largely passive at this stage. The HOA must make current governing documents available to the seller on request - typically through the estoppel certificate process under § 720.30851, which delivers financial and account-status information alongside copies of the recorded declaration, bylaws, and rules. Boards should ensure their property manager has a clear documented process for fulfilling these requests within the statutory deadline.
For Stage 4–5 sales - when a unit has known issues - the disclosure summary is not enough. Material defects, pending special assessments, ongoing covenant disputes, or planned rule changes should be disclosed in writing in the contract or in a separate seller disclosure form. The statutory summary covers the existence of the obligation; it does not cover specific facts that materially affect value.
Key requirements
Disclosure summary content
§ 720.401(1)(b)- Existence of the homeowners association
- Mandatory membership for property owners
- Mandatory assessment obligation
- Existence of restrictive covenants
- Existence of any rental restrictions
- Buyer's right to obtain governing documents
Delivery timing and consequences
§ 720.401(2)- Disclosure must be delivered before contract execution
- Late delivery triggers 3-day cancellation right from delivery
- If never delivered, cancellation right extends to closing
- FR/Bar real-estate contract incorporates disclosure automatically
- FSBO transactions face the highest non-disclosure risk
Cancellation procedure
§ 720.401(2)(b)- 3 calendar days after disclosure receipt
- Cancellation must be in writing
- Buyer entitled to refund of all deposits
- Closing extinguishes the cancellation right
- Post-closing claims limited to damages, not rescission
Seller obligations and HOA's role
§ 720.401 with § 720.30851- Seller bears legal responsibility for delivery
- HOA must provide current governing documents to seller on request
- Estoppel certificate under § 720.30851 packages financial info
- 10-business-day deadline for HOA document delivery
- Statutory fee caps apply to estoppel ($299/$478 plus expedite)
Related tools
Common questions about § 720.401
- What must an HOA seller disclose to a buyer under § 720.401?
- Section 720.401 requires the seller to provide the buyer with the official statutory Disclosure Summary - a state-issued one-page document that identifies the existence of the HOA, the mandatory assessment obligation, the existence of any restrictive covenants, the existence of any rental restrictions, and a statement that the buyer should obtain a copy of the recorded governing documents. The disclosure summary is the equivalent of the condo Q&A form under § 718.503 - it gives buyers a snapshot of the financial and use obligations of ownership before they sign a contract.
- When does the HOA disclosure summary have to be delivered to the buyer?
- Before the buyer executes the purchase contract, or at the time the buyer executes it. § 720.401 makes timing strict: failure to deliver the disclosure summary before contract execution gives the buyer a 3-day post-receipt cancellation right, with the period running until the disclosure is delivered. If the disclosure is delivered at closing or not at all, the buyer can cancel anytime up to that point. This is a significant trap for sellers using FSBO contracts without standard real-estate-agent forms.
- What is the 3-day cancellation right under § 720.401?
- After receiving the HOA disclosure summary, the buyer has 3 days to cancel the contract. Cancellation must be in writing. If the seller fails to deliver the disclosure before contract execution, the cancellation right is delayed until delivery - and persists until either delivery or closing. Closing itself extinguishes the cancellation right under § 720.401, but a buyer who discovers a material non-disclosure post-closing may still have damages claims.
- Who is responsible for delivering the HOA disclosure under § 720.401?
- The seller. In agent-represented transactions, the listing agent typically completes the disclosure summary and includes it in the contract package. The Florida Realtors/Florida Bar (FR/Bar) residential contract incorporates the statutory disclosure summary by reference. In FSBO transactions, the seller bears direct responsibility - and failures are common. The HOA itself is not required to deliver disclosures to buyers but must provide current copies of governing documents to the seller on request (separate from the estoppel certificate process under § 720.30851).
- How is § 720.401 different from § 718.503 condo disclosure?
- Both serve similar purposes - pre-sale buyer protection - but the scope and timing differ. § 718.503 (condo) requires delivery of the full governing-document package (declaration, bylaws, rules, financials, SIRS, milestone inspection) before closing, with a 3-day cancellation right after delivery. § 720.401 (HOA) requires only the statutory disclosure summary before contract, with the recorded governing documents typically obtained later. HOA disclosure is less document-heavy because HOAs are not subject to SIRS or milestone inspection requirements - they govern detached homes, not multi-story residential buildings.
Keep your HOA's disclosure-ready documents on Common Elements
Store governing documents, financial reports, and meeting minutes in one workspace - pre-built for the moment a seller (or their agent) asks for the closing package.
This is not legal advice. Consult association counsel for your specific situation.