When it comes to selling real estate in Florida, what you don’t say can hurt you, especially if it involves hiding known defects in the property. 

Under Florida law, sellers are obligated to disclose any known issues that could materially affect the value of the property and that aren’t easily observable by the buyer. Failure to do so doesn’t just risk the sale falling through, but it could also land the seller in legal hot water.

Florida’s Legal Duty to Disclose

Florida follows what’s known as the Johnson v. Davis (1985) ruling, which is a legal precedent that requires sellers to inform buyers of any known material defects that aren’t readily apparent. 

This includes structural problems like a leaky roof, foundation damage or faulty wiring, as well as environmental hazards such as mold issues. The seller’s obligation is a legal one, and “I didn’t think it mattered” won’t hold up in court.

What is Considered a “Material Defect”?

A material defect is anything that significantly affects the property’s value or poses a risk to health and safety. Examples include:

  • Termite damage
  • Plumbing issues
  • HVAC system problems
  • Drainage or flooding concerns
  • Structural deficiencies, etc.

When assessing whether something is considered a material defect, the key question is: Would a reasonable buyer care about this defect when deciding whether to buy the property or how much to pay for it? If the answer is anything other than a hard no, you should disclose.

Consequences of Failing to Disclose

If a seller in Florida fails to disclose known defects, the buyer may take legal action. This is true even for “as-is” sales.

In an “as-is” sale, the seller is not willing to negotiate repairs or offer concessions based on property conditions, but it doesn’t absolve them from disclosing known issues. Buyers still have the right to conduct inspections, and failing to disclose defects can lead to lawsuits even after closing.

Potential consequences of failing to disclose known material defects may include:

  • Rescinding the sale 
  • Monetary damages 
  • Attorney’s fees and court costs
How Sellers Can Protect Themselves

There are several ways to protect yourself when selling a home in Florida. For starters, be honest and thorough in your disclosure forms. When in doubt, disclose. Also, keep good records and documentation of any repairs or inspections, and work with a trusted real estate attorney to ensure your disclosures meet Florida legal standards.

Contact Us at Sirulnik Law and ADS Title Services, Inc.

A strong real estate team, including a knowledgeable agent, real estate attorney and title company, can help protect your interests and ensure a smooth transaction. If you’re preparing to buy or sell a property in South Florida, get in touch with the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. today.