Riverview, FL asked in Land Use & Zoning, Landlord - Tenant, Real Estate Law and Tax Law for Florida

Q: Is an HOA liable for known misrepresentations made by a home developer, on HOA controlled property?

If the HOA knew of the misrepresentations, intentional fraud, right? If they didn't know, negligence fraud, right? And any related parties aware and benefiting from said misrepresentations are conspirators, no?

1 Lawyer Answer
Barbara Billiot Stage
Barbara Billiot Stage
  • Real Estate Law Lawyer
  • Rockledge, FL

A: Generally, no, but that answer could change depending on the misrepresentations. If any of the misrepresentations conflict with the language in the HOA documents, which are public record, the HOA would not be liable because owners are deemed to have read the HOA documents whether they actually read them or not. You will need to consult with a HOA attorney of your own to present the facts. The hurdle would be proving the HOA knew or should have known about the misrepresentations. The HOA is controlled by the developer and once turnover occurs the control is given to the membership to elect the board of directors. The courts recognize the membership controlled board of directors had no way of controlling what developer controlled board members did or did not do in exercising their duties. The board members appointed by the developer are generally the developer's employees.

Charles M. Baron agrees with this answer

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.