Home sale disclosures would cover more association information

Unit owners or members would provide required resale information to the buyer or the buyer’s designated agent, while larger associations would send the information after receiving notice of a pending purchase offer. The rules cover condominiums and planned communities, including properties with fewer than 50 units or properties and those with 50 or more. The information may be sent on paper or electronically. The disclosure may rely in good faith on association records without an independent investigation or verification. Sales covered by specified public reports, certain statutory sales, and certain exempt deeds are excluded. The rules do not apply to timeshare plans or associations governed by the specified timeshare chapter. For smaller communities, the information would be provided within 10 days after notice of a pending sale and acceptance of the buyer’s offer. For larger communities, the association would provide it within 10 days after receiving notice of a pending purchase offer.

Associations would include added financial, property-condition, fee, insurance, control, and violation information in resale reports, and buyers would sign statements acknowledging the community rules and assessment obligations. The disclosures apply to buyers of condominium units and planned-community properties covered by the respective association statutes. Reports may summarize financial audits, reviews, compilations, or reserve studies that exceed 10 pages. A buyer may request access to the full report, and the association would provide access within 10 days after a written request. The report would identify known violations, certain special assessments, transfer fees, insurance coverage and deductibles, and applicable ownership or declarant-control information. The purchaser statements explain that unpaid assessments may lead to collection activity or foreclosure. The buyer would sign the required acknowledgment at closing and return the separate association-contract acknowledgment within 14 calendar days, as applicable.

Associations could charge capped fees for preparing resale reports and rush or updated reports, while buyers or sellers harmed by knowing or reckless disclosure failures could seek legal remedies. The fee rules apply to condominium associations and planned-community associations, including their managing agents acting for the association. The total fee for covered transfer services could not exceed $400, a rush fee could not exceed $100, and an update fee could not exceed $50. An update could be requested when at least 30 days had passed since the original report or document delivery. Fees could be collected only at closing and only once for the transaction. A court could award reasonable attorney fees for knowing or reckless failures or materially false or misleading statements. Unauthorized fee collection could bring a civil penalty of up to $1,200. The association may provide rush services within 72 hours when requested. The fee and disclosure remedies apply during the covered property transfer and report process.