Maggie, This is great information for buyers to be aware of. CDD’s have been around for ages and used successfully in many areas. However, in the height of the recent boom – many of the buyers who got caught unaware in Homestead were purchasing on the flip side of an investor transaction. It was the investor/flipper’s responsibility to disclose, because the disclosure had already been made to him as the contract purchaser.
All the more reason people should be working with a professional Realtor who can guide them through the process and point this kind of stuff out, enabling them to make better decisions.