When a person in Florida is selling a piece of real estate, they have a duty to disclose known issues that materially affect the value of the property that are not readily observable by the buyer. This is legally mandated from Johnson v. Davis, 480 So.2d 625 (Fla. 1985). The seller cannot attempt to hide any defects or dangerous hazards, and they need to tell the buyer anything that they know is an issue. More importantly, these disclosures are even required if the property is being sold “As Is.”
This doesn’t mean that the seller will know about everything, of course. It is possible to find issues with the house after the purchase, perhaps because those issues were hidden previously or they were just unknown or undiscoverable. But what types of things are sellers supposed to disclose if they know about them? The following is not a complete list, as the circumstances of each individual property and the history the seller has with the property both play a major role, but these are some common disclosures that all sellers must make and which come up frequently:
Serious construction issues or property defects
For one thing, if the house is going to need significant repairs or renovations – such as if it has structural damage, foundation problems, roof leaks, etc. – then the seller should make that known at the beginning. Property defects can also include things such as plumbing issues, electrical problems, and termite or pest infestations (very common in Florida). The buyer still needs to carry out a home inspection, but these disclosures help the inspector know where to begin and can protect all parties once the sale is completed.
Health hazards
If there are known health hazards, sellers also have to make these known upfront. Examples of these health hazards that should be disclosed include: black mold, radon gas, lead paint, or hazardous materials.
Outdated materials
In some cases, sellers need to tell the buyer if outdated or banned materials have been used in the home. Maybe the tiles are made out of asbestos, for instance, or the interior of the home has been painted with lead-based paint. Remediation may be necessary before someone can safely take residence.
Legal issues or code violations
Often, people don’t think of these types of issues as required disclosures, but these are just as important to disclose as something as obvious as a leaking roof. If the property is the subject of litigation, if there are outstanding code violations, liens, etc., then these things need to be disclosed. It is important to keep the standard mentioned above in mind as a seller may need to disclose more than they think, originally.
Sellers’ disclosures are designed to protect a buyer in the purchase of a new home, but should not be a substitute for a buyer’s own due diligence. A buyer should still have their own inspection of the property completed and perform all research into the property and the surrounding area to determine if the home is right for them.
These are just a few areas where disclosures are necessary. Knowing what is necessary to disclose and what is not can make real estate transactions complicated. Those involved need to know what legal steps to take and should consult with an experienced real estate attorney to assist. At Corey Szalai Law, PLLC, we have litigated and helped resolved issues relating to property disclosures, both on the seller and buyer side, so if you are in need of legal help, please schedule a consultation with us today.