Because real estate investments are among the biggest purchases many people ever make, information is key to minimizing the risk that inherently comes with this type of purchase, and a critical piece of information buyers need to have access to is the seller disclosure form. 

Seller disclosures are legally required documents that help Florida buyers make informed decisions. The completed disclosure form reveals key details about the condition of a property (especially details that are not readily observable to the buyer). But what exactly do sellers have to disclose? And what happens if they fail to do so? Here’s more about the role of seller disclosures in Florida real estate and why they matter for both buyers and sellers.

What Are Seller Disclosures?

A seller disclosure is a legal requirement that obligates home sellers to disclose known defects, hazards or other issues with the property. In Johnson v. Davis, the Florida Supreme Court established that sellers have a legal obligation to disclose known material defects that could affect a property’s value or pose a risk to buyers. The ruling clarified that intentional concealment or misrepresentation of defects can lead to legal liability.

What Must Sellers Disclose in Florida?

In Florida, sellers must honestly disclose known material defects about the property, including:

  • Structural issues – Roof damage, foundation cracks or termite infestations.
  • Water damage and mold – Past or present leaks, flooding history and mold problems.
  • Plumbing and electrical problems – Outdated wiring, faulty plumbing or septic system failures.
  • Past repairs and renovations – Unpermitted work or incomplete repairs that could impact the property.
  • Environmental hazards – Lead-based paint, radon gas, asbestos or sinkhole activity.
  • Property disputes and legal issues – Boundary disputes, liens or zoning restrictions.
  • Disclosures specific to coastal properties – Per Fla. Stat. §161.57, sellers must disclose the potential for coastal erosion, protection requirements for marine turtles, that the property may be subject to regulations regarding construction, among other requirements.

Even if a buyer doesn’t directly ask, the seller must disclose these issues. However, sellers are not required to investigate or hire an inspector to find hidden defects. Additionally, sellers are not required to disclose nonmaterial issues, which may still be important to a buyer. For example, under Fla. Stat. § 689.25, sellers, brokers and agents do not need to disclose the fact that an occupant of a property is infected with HIV or has been diagnosed with AIDs or the fact that a property was, or was at any time suspected to have been, the site of a homicide, suicide or death.

What Happens If a Seller Fails to Disclose?

Failing to disclose known issues can lead to legal trouble. If a buyer discovers a hidden defect after closing and can prove the seller knew about it but didn’t disclose it, the buyer may have grounds for a lawsuit. For sellers, failing to disclose can be far more costly than simply being upfront from the start.

Contact Us at Sirulnik Law and ADS Title Services, Inc. with Questions about Seller Disclosures

Seller disclosures don’t just protect buyers, they also protect sellers by reducing the risk of legal disputes. By being transparent, sellers can avoid potential lawsuits and ensure a smoother closing process. Moreover, a well-documented disclosure history can boost buyer confidence and prevent deals from falling apart at the last minute.

If you’re considering buying or selling real estate in Florida, call our teams at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. today.