Disclosure of on going lawsuit...

Started by RosemaryH2 • 15 replies • 3892 views

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RosemaryH2
Posts: 3

Posted:

Does anyone know if the homeowners association has to disclose an on going lawsuit to perspective buyers in florida. Even if all special assesstments are paid update but the case is still open.
Thank you

DonnaS (Tennessee)
Posts: 5,671

Posted:

Rosemary,
Florida Real Estate sales contracts have on their disclosure sheets, a line that you should use to state any pending lawsuits that involve the HOA. I don't know what line it is but I recently did see it.

PamS3 (California)
Posts: 1

Posted:

Yes, absolutely. I am also a licensed Realtor and I know that this is imperative to avoid any possible future liability. Disclosure can be made in a positive manner. But make sure it is included in Seller disclosure form.

BrianB (California)
Posts: 2,820

Posted:

because i am stupid here, i need this explained to me.... unless the HOA is selling a home, why would they disclose anything on a Seller disclosure sheet? Isn't that the responsibility of the homeowner who is selling the place?

Is there an HOA disclosure sheet in a real estate transaction? I never received one in my years on the board, even a request for one. Is this normal?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Brian,

Where did you get the idea that the HOA has the disclosure? It is on the sellers disclosure sheet. The HOA has nothing to do with a sale of a residence. Some condo associations require prior approval of a buyer before a sale can be completed. A condo of mine requires an approval certificate before the final papers are signed. I believe that this might be challengeable one of these days. I do not know if they ever have denied a sale as that would be a lawsuit from the seller, but then again, I have heard of weirder things happening in these condo associations.

BrianB (California)
Posts: 2,820

Posted:

Donna, i got it from here: the OP asked if an HOA had to disclose a lawsuit, and she got two answers of "yes"....

Quote:

Posted By RosemaryH2 on 04/02/2008 10:54 AM
Does anyone know if the homeowners association has to disclose an on going lawsuit to perspective buyers in florida. Even if all special assesstments are paid update but the case is still open.
Thank you

"Rosemary,
Florida Real Estate sales contracts have on their disclosure sheets, a line that you should use to state any pending lawsuits that involve the HOA. I don't know what line it is but I recently did see it."

"Yes, absolutely. I am also a licensed Realtor and I know that this is imperative to avoid any possible future liability. Disclosure can be made in a positive manner. But make sure it is included in Seller disclosure form."

So, that's where i got it from.

MaryA1 (Arizona)
Posts: 7,043

Posted:

I would suggest thoroughly checking your gov. docs. and state law. In AZ, disclosure is required by state law:

ARS 33-1806 (p/c's) and 33-1260 (condos) says: the seller is resp. for providing info if fewer than 50 units; the assn is resp. for more than 50 units. Among other things, a statement of case names and case numbers for pending litigation with respect to the unit being sold. This info is required to be mailed or delivered to the purchaser within 10 days of a written notice of a pending sale.

RosemaryH2
Posts: 3

Posted:

Thank you all!
It does sound like the hoa does have to disclose the lawsuit! I was wondering if anyone knew exactly where I could find it in the florida law? We have five homes this was never disclosed to and now I need find out exactly what the law states.
The only things I can find is in 720.401 where you have to tell them about special assesstments. What if they were all paid up to date at the time of sale even though the lawsuit is still going on? I'm not quit sure where we put that the hoa is in a lawsuit.
Do we just have to make sure it is on there because there will be special assesstments in the near future?
Thank you

HaroldS (Arizona)
Posts: 906

Posted:

I thought HOAs were supposed to protect property values? Wouldn't an impending special assessment for any reason devalue property? Especially an unknown amount until the lawsuit is settled?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Mary,
It is NOT in the 720 Statutes but in the Real Estate laws.

DonnaS (Tennessee)
Posts: 5,671

Posted:

SORRY---- Meant for Rosemary!!

SusanW1 (Michigan)
Posts: 5,202

Posted:

I would think that the BUYER's real estate agent would be asking these questions.
That's his/her job to protect the client.

RosemaryH2
Posts: 3

Posted:

Thank you Donna!

It looks like the seller has to disclose the lawsuit. I don't see where tha hoa needs to disclose it. Am I missing something or is that what you meant?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Rosemary.
You have got it right now. The HOA has nothing to do with a sellers disclosure other than make sure that the membership (seller) is informed of any litigation. Another good reason to buy Title Insurance and to do a Title search as this would show up on the search. It is the responsibility of Real Estate agents to ask any seller to make sure that they fill out the disclosure. Then it is basically, how honest is the seller.

BrianB (California)
Posts: 2,820

Posted:

except in Arizona, for HOA's larger than 50 units. In those situations, the HOA actually must fill out a disclosure form too.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Brian,

Yes, the law say's the HOA is only resp. for assn's with 50 or more units, however, even most smaller assn's take on the resp. The Title Co. makes the request and they don't care how many units are in the assn. Actually it's better this way because most homeowners wouldn't even know about the law.

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