The response given when asked about the pending litigation and the lack of transparency by the board is total nonsense.
The management companies’ representative, Patricia Kotiah of Arthur David Properties, Inc. is incorrect in her statement that the board does not have to reveal any legal issues or litigation. (see video)
While boards should not discuss ongoing legal strategies, they do have certain obligation to let owners know if there are legal issues. Further they should keep owners abreast to any developments. Another issue that may develop is the lack of full disclosure by the board as it relates to buyers. It’s possible that by our management company not disclosing litigation is creating a problem.
How Florida Sellers Make Disclosures to Prospective Home
To assist sellers in making the relevant disclosures, the Florida Association of Realtors® provides a standard form, which covers many common property characteristics about which buyers want to know. (This is separate from the standard contract that is used in most residential real estate transactions to bring about the purchase and sale of the home. Also, that contract is typically where the property-tax disclosure described above is made.)The categories covered on the standard Florida disclosure form include, for example:
- whether any actual or potential legal claims, complaints, or court proceedings affect the property