Changes to the Homeowner’s Association/Community Disclosure Rider

A new Home Owner’s Association Disclosure (the “Disclosure”) has been approved for use with the FAR/BAR AS IS Contract as well as Standard Contract for Residential Sale and Purchase. The updated Disclosure is now available as part of the CR-5 Rev. 9/17 and was approved for use beginning on September 26, 2017. Part A of the Disclosure remains substantially the same as the old disclosure, however the new version of the Disclosure adds a “Part B” that makes it comparable to the current Condominium rider. The Disclosure now requires that a Seller inform the Buyer if association approval is required, if any fees are due, or if there are special assessments, all items that are already covered in the Condominium Rider.

A summary of the changes to the Disclosure contained in Part B of Homeowners’ Association/Community Disclosure is as follows:


(a)    Seller must inform the buyer if Association approval is necessary.

(b)    Seller must initiate the approval process with the Association.

(c)    Both the Buyer and the Seller to work diligently to obtain approval, and allows the Buyer to terminate the contract should approval not be granted within the timeframes provided within the Disclosure.

One of the more significant changes in the new Disclosure is that it makes it the Seller’s responsibility to let the Buyer know if association approval is necessary, and then goes further by requiring the Seller to initiate the process.

Payment of Fees, Assessments, and Other Association Charges.

(a)    Seller to provide information related to application, initial contribution, and/or membership and other fees charges by the association.

(b)    Allows the parties to determine who will pay any special assessments as they may exist at the time the contract is signed and confirms what each party’s responsibilities would be for any special assessments due.

Finally, the new Disclosure allows for the Seller to provide contact information for the Association or Management Company, including an association website. Having this information with the contract would give the Buyer access to the association directly to begin providing them with application materials should they need to be granted approval, gain access to association governing documents for review prior to closing, and address any of their concerns related to the association directly with the association or management company.

These additions to the Disclosure will go a long way in helping Buyers as well as Closing Agents prepare for closing. Having information about approvals, fees, and up to date contact information for the association will allow parties to order estoppels timely, and ensure that any necessary Buyer approvals are obtained as well.  As always, we suggest you contact your real estate attorney should you have any questions.


Berlin Patten Ebling, PLLC
Article Authored by Natasha Selvaraj, Esq.

This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

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