16. Election Disputes (720.306(9)). Election disputes between a member and the association must be submitted to mandatory binding arbitration with the Division of Florida Land Sales, Condominiums, and Mobile Homes. This is also patterned after the statute governing condominium associations.

Effective June 23, 2004

17. Dispute Resolution. (720.311) Most other disputes between an association and a parcel owner (other than recall and election disputes) must be filed with the Division of Florida Land Sales, Condominiums, and Mobile Homes for mandatory mediation before filing a lawsuit in court. The filing fee is $200.00. If the dispute cannot be resolved, it can then go to binding or nonbinding arbitration if the parties agree or a lawsuit can be filed.

Effective June 23, 2004

18. Disclosure Summary (720.601 in SB 1184 / 720.401 in SB 2984) The disclosure summary required by Florida Statutes, Section 689.26 is revised and is moved to a new section of Chapter 720. The law requires that a seller provide a disclosure summary to a prospective purchaser of property in a mandatory homeowners association prior to executing a contract for sale. The statute has been amended to require the disclosure of additional information.

Effective June 23, 2004

19. Publication of False and Misleading Information by the Developer (720.602 in SB 1184 and 720.402 in 2984) Any person who pays anything of value toward the purchase of a parcel in a community and has relied upon material statements or information that is false or misleading has a cause of action against the developer. If before the closing, the purchaser can seek to rescind the contract or to collect damages for any loss before the closing. If after the closing, the person may seek damages from the time of closing until one (1) year after the closing on the lot, the issuance of the certificate of occupancy, or the completion of the recreational facilities, whichever is later, but in no event shall it be later than 5 years after the closing. The prevailing party shall be entitled to collect reasonable attorney’s fees and costs from the non-prevailing party. The developer is prohibited from using association funds to defend a lawsuit brought pursuant to this statute.

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