F.S. 720.401 is the statute that controls what a seller of a parcel in a Florida HOA must tell the buyer about the association before closing. The required disclosure is short, its format is prescribed, and the consequence of omission is a three-day rescission right that can unwind a closing after contract. CAMs usually help the seller assemble the disclosure; boards should know their records-response duty when the seller requests the underlying data.

What the statute says

F.S. 720.401(1):

A prospective parcel owner in a community must be presented a disclosure summary before executing the contract for sale. The disclosure summary must be in a form substantially similar to the following form...

The statute then provides the full prescribed disclosure form (often called the "F.S. 720.401 summary"). It must be delivered before contract execution OR the buyer has a statutory right to void the contract for a narrow window.

"What does the disclosure summary contain?"

Five required disclosures:

1. Mandatory-membership notice. The buyer must be told they will be required to be a member of the HOA if they purchase the parcel.
2. Recurring-assessment notice. The buyer must be told assessments are required + what the current amount is.
3. Lien-authority notice. Unpaid assessments can become a lien on the parcel under F.S. 720.3085.
4. Governing-document compliance notice. The buyer will be required to comply with all provisions in the governing documents.
5. Governing-documents-copy right. The buyer has the right to receive copies of the governing documents from the seller (practical source: the association's records desk).

The summary format is prescribed; substantially similar is the test. Paraphrasing is risky.

"What happens if the seller omits the disclosure?"

F.S. 720.401(2):

A contract that does not conform to the requirements of subsection (1) is voidable by the buyer by delivering, before closing, written notice of the buyer's intention to cancel. A buyer's right to void the contract shall terminate at closing.

Three practical implications:

1. Pre-closing rescission is absolute. Buyer gets deposit back; seller cannot object to the rescission based on buyer's reason.
2. Post-closing rescission rights extinguish. Once the closing executes, the buyer waives F.S. 720.401 defenses. Their remedy shifts to general contract + fraud law, which is weaker.
3. Three-day rescission from DELIVERY of summary, not contract date. If the summary is delivered after contract but before closing, the buyer has three days from delivery to rescind.

"What's the CAM team's role?"

CAMs usually help the seller assemble the disclosure. Three practical inputs the seller needs from the association:

1. Current assessment amount + any pending increase. The summary must reflect the assessment the buyer will actually pay post-closing.
2. Copy of the governing documents. The seller links to or provides the full declaration + bylaws + rules. F.S. 720.303(5) records-response clock applies if the seller requests these in writing.
3. Any arrears on the parcel. Under F.S. 720.3085 lien relation-back, the buyer takes title subject to the lien unless the seller clears arrears at closing.

Three-step workflow for any pending sale:

1. Seller requests estoppel letter from the association. Standard document summarizing assessment status + amounts owed. CAMs usually charge for estoppel preparation; the cost is market-rate-capped.
2. Seller delivers F.S. 720.401 summary to buyer before contract. Standard real-estate practice; the real-estate agent usually has the template.
3. Buyer signs acknowledging receipt. The signed acknowledgment goes into the closing file.

"What's the estoppel letter?"

Not required by F.S. 720.401 itself, but the practical workhorse for every FL HOA property transfer. The estoppel letter states:

1. Current assessment amount.
2. Any arrears + accrued interest + late fees + attorney costs.
3. Any special assessments pending or imminent.
4. Whether the parcel is subject to any pending enforcement action.
5. Whether any other community-wide action might affect the buyer's future obligations.

F.S. 720.30851 regulates the estoppel letter separately (timing, fee caps, content). CAMs charge $200-$300 for the preparation; statute caps the fee.

"What if the disclosure is wrong?"

A disclosure that turns out to be materially inaccurate + was relied upon by the buyer creates a Florida DUTPA claim under F.S. 501.204 + a common-law fraud claim. A disclosure quoting the wrong assessment amount, missing a pending special assessment, or failing to disclose a known enforcement action is materially inaccurate.

The association + the seller are typically both named; the indemnification path between them is fact-specific.

Why this post exists

HOAStream surfaces F.S. 720.401 alongside the community's current assessment + estoppel-letter template in under 500 milliseconds, so a CAM team helping a seller assemble the disclosure has the exact statutory frame ready before the real-estate agent calls. Nothing in this post or in the product is legal advice. For a specific disclosure dispute where rescission is in play, a retained Florida HOA + real-estate attorney is the right call.

If you want the full seller-disclosure statute stack alongside your community's declaration + current assessment schedule, sign up at /cam or /board.