Legal Question in Real Estate Law in Florida

You need to have an attorney review, the HOA documents and determine what your powers are as the HOA. You should be very sure of your rights because if you do not have the authority to block the sale, or if your actions are seen as arbitrary, capricious, punitive, or unreasonable, the HOA could face a lawsuit from the seller and/or the buyer. If you take no action and you should have, you could face a lawsuit from other owners for not protecting them when you knew of the problems. Since you don't say what she lied about it's hard to assess whether there is any merit to your objection, or whether you are exposing the HOA to any liability by blocking the sale.

The HOA should hold a meeting in accordance with their by-laws and vote on whether they should retain an attorney to review the situation. Then they should proceed without delay and get an opinion from counsel before taking any action.