What is a CDD?

For many of us the title CDD looks like a disease or something weird.  It is actually Community Development District. When a new community is developed with various amenities, this all costs the developer, which in turn he passes these costs onto the Buyer.  The  first Buyer has all this Non-Ad Valorem taxes spelled out in their contract, along with their Ad Valorem or property taxes.  However, the next Buyers that come along and buy in the community (a resale)…..they have no idea that they will be required to pay the Non Ad Valorem taxes. How many Buyers go to the tax roles and look their property up?  Later on when they see their bills for the year, many of them are astonished as they had no idea…and many Realtors are also not aware.  We could be liable as could the Seller.  Now I know if the Realtor is not aware and the Seller has not said anything, the Realtor is not liable but the Seller may be.  However, the costs are clearly in the tax rolls and since the tax rolls are available to all, law says that the Buyer is basically out of luck as they should have known.  Thank heavens for Florida Realtors Forms Committee, they are including a line or two in the Seller Disclosure that basically asks the Seller if there is a CDD and to advise the Buyer from that point so no one is blindsided.

I brought this to your attention because a retired Realtor from St. Augustine area wrote me with this problem.  It has taken over a year to have it put into the Sellers Disclosure so that Buyers are aware if they are buying into this type of community…but now we’ll all know!

So my fellow Realtors, please be good to each other.

Until Next Monday..

 

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