Quote:
Posted By hoatalk on 01/16/2006 4:47 AM
First, I'm no attorney and the opinion below comes from my research only:
How does this apply to a public web site? If the Board publishes documents that have an adverse affect on the community or a member, then there could be some liability for the association. Some hypothetical examples:
(1) A prospective buyer signs a purchase agreement, then backs out because of negative information it finds on your public web site (some feedback in your newsletter, some item in your financials, etc). You don't know what someone may consider negative. If that information was not a required disclosure item under your state law, then might the Board/association be liable to that homeowner for making them lose the sale?
(2) A Florida condo HOA publicly publishes their financials which show a relatively low reserve fund. The local newspaper is doing a story on the effect of hurricanes on local homeowners called, "Condos going broke!", where it lists your neighborhood as one to stay away from, due to it's low reserve fund and the potential for a huge member assessment after the next storm. Even if the community was in the process of addressing the issue, the damage is done.
Florida Statutes have recently changed to REQUIRE Association run communities:
720.401 Prospective purchasers subject to association membership requirement; disclosure required; covenants; assessments; contract cancellation.
720.402 Publication of false and misleading information.
720.401 Prospective purchasers subject to association membership requirement; disclosure required; covenants; assessments; contract cancellation.--
(1)(a) 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:
And to get out of the contract for sale:
IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER'S AGENT OR REPRESENTATIVE WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE
So as to publication of documents, etc. I would say the public has the right to know the negatives and positives about a community they are spending a huge amount of money to live in.