Florida real estate law requires sellers to divulge
all the known problems and flaws of a home or property when it’s put on the
market to be sold. The information is called a seller’s disclosure and it’s given
to buyers who want to know the reasons for the property pricing.
This disclosure should share everything seen
and unseen that’s known about the property by the seller. It acts as a guide to
the value and price of a property being sold.
The disclosure must be filled out honestly
and is designed to help sellers know everything they want to know about
problems in the history of the property.
Sellers have to comply with Florida’s laws
about disclosure requirements. Any sellers who do not disclose what is reasonable
for them to have known can be held legally and financially responsible.
The
fallout from hiding what should have been disclosed can lead to very expensive
lawsuits. The buyer can sue a deceitful seller for fraud. The statute of
limitations for the Florida Seller’s Disclosure Law is five years in Florida.
The condition of the real estate property is
based on what the seller knows about the property condition. Buyers, sellers
and realtors refer to the information when evaluating, marketing, or presenting
the seller’s property to prospective buyers.
Get a Home Inspection
In order to prevent surprises it’s a good
idea to have a home inspected before it goes on the market. This way any
serious, potentially problematic faults, weaknesses or failures will be known.
Eventually an inspection will be done by the buyer and if you fear there are
issues but ignore them, you’ll end up paying for their repair, replacement or failure
to disclose.
Disclosing Material Facts and Hidden Defects
The Florida Seller’s
Disclosure became mandatory in 1985 when in a landmark case, Johnson v. Davis, the
Florida Supreme Court found that sellers cannot conceal material defects in property for sale.
In Johnson v. Davis, the
sellers denied that marks on a ceiling were leaking. When the buyers wanted to
purchase the home the sellers said that the roof did leak, but that it had been
repaired. However, when it rained, the roof leaked. The buyers sued the sellers
and won.
Material defects are any facts that may have a significant and reasonable impact
on the market value of the property. Material defects are visible to the eye. Under
Florida law, these material defects must be shared with a potential buyer.
According to the Florida Bar: “A buyer of residential real estate can
maintain a cause of action for nondisclosure of latent defects and is not
required to prove a false statement by the seller in order to recover. The
seller now has an affirmative obligation to disclose known material defects.
Since a buyer has no duty to find a latent defect, but only one that is
“readily observable,” a non-disclosing seller may not defend on the basis that
a ‘reasonably diligent’ inspection would have disclosed the material defect.”
For example, defects in the materials used to
build the home must be disclosed by Florida commercial and residential real
estate sellers. This is particularly important in older homes where dangerous
materials like lead paint or asbestos were included in ceilings or walls.
Non-Apparent Defects
In addition to apparent defects in the home,
the state of Florida requires that non-apparent defects are disclosed. Non-apparent
defects are Florida disclosures must list serious material defects voluntarily.
Crime Scenes
If a murder or suicide took place in a home
or property the information does not have to be disclosed to any potential
buyer.
Hazardous Materials or Substances
If hazardous substances or contaminated sites are located on or nearby the
vicinity of residential property it must be disclosed according to the
Florida disclosure law.
Florida real estate law requires sellers to
provide full disclosures when listing a home for sale even if listed "As
Is." An “As Is” contract does not relieve a seller of the duty to
disclose. An "as is" contract does not allow a seller to withhold
knowledge of known defects. Defects that materially affect the value of a
property that can’t be immediately seen or discovered by the buyer must be
disclosed by the seller.
If a seller tries to repair a defect and does not disclose it and that defect leads to additional damage that they may/may not
have been aware of they will also be responsible for this additional damage.
Sellers can only disclose what they are aware
of. If a repair was made and seller thought the problem was resolved (in good
faith), the seller would need to disclose that a repair was made.
You can’t rely on the honesty of others while
buying or selling property. The buyer must be aware and the seller must be
cautious.
Whenever buying or selling a property it’s
important to consult with an attorney particularly with the many disclosures,
and requirements sellers and buyers must provide, sign and review when buying
or selling property.
Consult with Eric Lanigan and Roddy Lanigan
regarding any real estate issues, contracts or disputes. Eric Lanigan has
practiced business, civil, financial and real estate law in Florida since 1976;
Roddy Lanigan has practiced since 2007. The Lanigans are experienced attorneys
who provide clients with aggressive representation with a personal touch.
