SB 315: Property Owners' Associations; property owners' associations to provide disclosures and certain documents before a lot sale closes; require

Right now, Georgia law does not clearly require property owners' associations (often called homeowners' associations) to give buyers standardized disclosures before they sign a contract to buy a lot in the community. This bill adds a new section to Georgia's property owners' association law (O.C.G.A. § 44-3-231.1) that changes that. Sellers or declarants would have to give prospective buyers a disclosure summary describing association membership, assessments, fees, and covenants before the buyer signs a sales contract. Buyers would also have to receive copies of the association's declaration, bylaws, budget, management contracts, and related documents at least seven days before closing. If these materials aren't provided on time, the buyer can cancel the contract. The bill also creates a legal claim for buyers harmed by false statements or missing disclosures, sets a $1,000 fine for willful violations, and would take effect July 1, 2025, applying to lot sales on or after that date.

• Requires sellers or declarants to give prospective lot buyers a standardized disclosure summary describing association membership, assessments, fees, and covenant amendment rights before the sales contract is signed.
• Requires sellers to furnish copies of the association's declaration, bylaws, budget, management contracts, and recreational facility leases at least seven days before the transaction closes.
• Gives buyers the right to void or cancel the sales contract if the disclosure summary or required documents are not delivered on time, a right that cannot be waived and ends at closing.
• Creates a legal cause of action allowing buyers who relied on false or misleading statements, or who were not given required documents, to sue the seller for damages within specific time limits.
• Sets a $1,000 fine for willful violations of the disclosure and document requirements by a declarant, seller, sales agent, broker, or other person.
• Requires sales brochures to disclose facility ownership and completion obligations and include a specific disclaimer about oral representations.

Property owners' associations, including homeowners' associations, and their declarants; anyone selling a lot in a covenant-governed community; real estate sales agents and brokers; and prospective lot buyers who would receive new disclosures and cancellation rights before closing.

Buyers in Georgia communities governed by homeowners' associations would get clearer upfront information about assessments, fees, and covenant rules, plus a documented window to back out if paperwork is missing. Sellers and associations would face new paperwork duties, deadlines, and potential fines or lawsuits for noncompliance.

• Adds new Code Section 44-3-231.1 defining 'lot,' 'lot owner,' and 'property owners' association' by reference to existing law and creating disclosure requirements.
• Subsection (b) requires a specific disclosure summary form covering membership, assessments, special assessments, liens, recreational fees, and covenant amendment rights before contract execution.
• Subsection (c) requires contracts to include a boldface clause warning buyers the contract is voidable within 3 days of receiving the disclosure or before closing, whichever is first.
• Subsection (e) lists seven categories of documents (declaration, bylaws, management contracts, budgets, leases, and a build-out statement) that must be furnished at least seven days before closing.
• Subsection (f) caps any deposit charged for these documents at $25.00 and requires a written, dated acknowledgment of receipt.
• Subsection (l) and (m) create a buyer's cause of action for damages tied to false statements or missing disclosures, capped at five years after closing, with attorney's fees for the prevailing party.
• Subsection (n) sets a $1,000 fine for willful violations of the section's requirements.
• Section 2 sets the effective date as July 1, 2025, applying to lot sales made on or after that date.

1. 2025-03-03Senate Read and Referred (Senado)
2. 2025-02-28Senate Hopper (Senado)

• Jason Esteves (D, SD-035)Patrocinador principal
• Donzella James (D, SD-028)
• RaShaun Kemp (D, SD-038)
• Randal Mangham (D, SD-055)
• Nabilah Islam Parkes (D, SD-007)

• homeowners' associations
• real estate disclosures
• property owners' associations
• home buying
• Georgia property law