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SELLER'S DISCLOSURE

Florida law requires you to disclose any material defects or other material factors to the buyer.

In 1985, the Florida Supreme Court decided Johnson v. Davis. That decision requires residential sellers to disclose known defects that are not readily observable or obvious to the buyer. An “AS IS” contract does not remove or limit that duty. You must disclose any known fact that can materially affect the value of the property.

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"An investment in knowledge

pays the best interest."

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You must disclose any material defect that can affect the purchase price of the property. This includes, but is not limited to, appliances that are not in working order, leaky roofs or windows, work done on the property by unlicensed contractors, and sinkhole activity on the property or surrounding properties. If you have actual knowledge of a defect, you must disclose it.

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One important disclosure that sellers often overlook is the lead-based paint disclosure. If your property was built before 1978, you must inform the buyer of the possibility that lead paint is present, whether you have knowledge of it or not. You must also disclose the possibility that radon gas is present. Radon is a colorless, odorless, and tasteless radioactive gas formed during the natural breakdown of uranium in soil, rock, and water. It leaves the ground and can seep into your home through cracks and holes in the foundation.

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What must I disclose to the buyer?

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Does the disclosure need to be in writing?

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The simple answer is no. However, we recommend that you make the disclosure in writing, rather than orally, to avoid a possible lawsuit in the future if the buyer finds a serious material defect and then claims you never informed them. It’s important to understand that your seller’s disclosure does not have to be a comprehensive report on the property, but it should contain all known defects that can affect the property’s value.

 

Additionally, if you know of other factors that are not necessarily material defects but can affect the property’s value, you must disclose those as well. An example of this would be the building of a new school or the widening of the street, which may increase traffic in front of the property and affect its value.

What sort of things must I disclose to the buyer?

Although this is not a comprehensive list, below you will find the most common items that need to be disclosed:

 

  • The condition of roof/ ceiling (any leaks?).

  • Is the foundation of the property if it has cracks or is unstable.

  • If you have a seawall or dock, is it structural sound.

  • Are existing major appliances in working order? A/C, kitchen appliances, electrical components, sprinkler system or alarm system.

  • Are any appliances, water heater or other components leased?

  • Does the property have termites, fungi or other wood destroying organisms or damage from them?

  • Has the property been treated for wood destroying organisms?

  • Has the property suffered from any type of water intrusion?

  • Are there drainage or flooding issues with the property?

  • Is the property located in a flood zone?

  • From where do you get your water? Public source, private or well?

  • Does the property connected to the sewers system or does it have a septic tank?

  • Have you had plumbing leaks since you’ve owned the property?

  • Has the roof ever leaked during your ownership?

  • Are the any defects with any of th roofing components, such as the fascia, soffits, flashings or gutters?

  • If you have a pool or spa are there any leaks?

  • Have you ever filed an insurance claim because of sinkhole damage?

  • If your house belongs to an association, is participation mandatory?

  • Are there any homeowner association restrictions?  Any proposed changes or charges? Any pending lawsuits?

  • Are there any code violations or liens on the property?

  • Are there any open permits?

 

These are just a few of the major issues a written disclosure should cover. We will provide you with a seller’s disclosure form to help you meet this legal requirement.

If you've experienced any major plumbing issue with your home, you should disclose it and inform the buyer that it was corrected. 

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Electrical Work

If you've experienced any major electrical issue or have added new circuits to your electrical box, you should disclose it and inform the buyer.

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