Buying a home in a Florida homeowners association (HOA) community isn’t always as simple as signing a contract and closing the deal. In many Florida communities, the HOA has the authority to screen and even deny potential buyers, but only under specific conditions and with careful attention to legal boundaries.
So when can an HOA say no to a buyer? And more importantly, how must they handle it to avoid legal trouble? Here’s what to know.
When Can an HOA Deny a Buyer?
First things first, Florida law allows HOAs and condominium associations to approve or reject buyers, but only if the governing documents explicitly grant that power. If the governing documents do not authorize buyer approval, the association generally cannot interfere in the sales process.
If the documents do grant that authority, here are some legally acceptable reasons a board may deny a prospective buyer:
- Failure to submit a completed application
- A criminal history that presents a legitimate safety risk
- Documented history of rule violations in prior communities
- Failure to meet financial qualifications
- Noncompliance with screening interviews or required steps
How to Deny a Buyer the Right Way
Even if you have valid grounds for a denial, the process must be handled with transparency and compliance. Here’s how to do it fairly and legally:
- Ensure screening procedures are in writing – All screening procedures must be clearly outlined in your HOA’s governing documents. If the procedures or criteria aren’t properly documented, you risk a legal challenge.
- Treat every buyer equally – The board must apply screening standards uniformly. Every applicant should be evaluated using the same criteria. Selective enforcement is not only unfair, but it’s also a legal liability.
- Avoid discrimination – Even if a buyer seems like a bad fit, your board cannot reject them based on protected characteristics such as race, religion, national origin, sex or gender identity, disability or familial status. These protections fall under The Fair Housing Act and violating them can lead to federal lawsuits.
- Document everything – If the board decides to deny a buyer, keep written records of the applicant’s submission, the reason for denial, meeting minutes or internal communications, the formal notice provided to the applicant or seller. Proper documentation is your best defense if the decision is ever challenged.
- Consult an attorney – Before denying a buyer, especially in complex cases, consult with an HOA attorney. They can review your documents, confirm legal grounds for denial and help draft the rejection notice to avoid missteps.
Turning away a buyer is a serious decision that must be approached with care, fairness and legal oversight. While Florida law gives associations significant power in the approval process, that power must be used responsibly and in accordance with both state statutes and federal fair housing laws.
If your association is unsure how to handle buyer screening or needs help updating governing documents to include approval procedures, contact us at Dania Fernandez and Associates, P.A. Our team is here to help protect your community while ensuring full compliance with Florida law.
