What are Home Seller Disclosure Obligations in Florida?

Florida home sellers are legally required to disclose all known facts that materially affect the value of the property being sold and that are not readily observable or known by the buyer.

Examples of mandatory disclosure items include known defects or issues with a property’s roof, foundation, electrical, plumbing, mechanical systems. Additional examples include violations, disputes, litigation and environmental hazards such as lead, asbestos, mold and insect infestations or underground storage tanks.

This obligation has been in effect since the Johnson vs. Davis ruling in 1985, where the Florida Supreme Court held that “where the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them to the buyer. This duty is equally applicable to all forms of real property, new and used.”

Note that sellers are only obligated to disclose what they actually know. A seller might not know about all material or significant items, in which case the seller will not run afoul of Florida’s seller disclosure requirements.

Moreover, a seller in Florida is not obligated to disclose obvious defects that are readily observable to a buyer. For example, a seller who doesn’t disclose the presence of a large hole in the living room wall isn’t violating disclosure laws since the defect is readily observable to the buyer.

Most sellers in Florida utilize the Seller’s Property Disclosure Form created by the Florida Association of Realtors in order to facilitate compliance with disclosure laws. There are two versions: ‘Residential’ and ‘Condo’.

It’s important to keep in mind that there is no statutory requirement to use one of these forms, or for the seller to complete any disclosure form.

Moreover, the use of a standard disclosure form may not address every significant issue that is unique to a particular property.

Are sellers in Florida required to complete a property disclosure form?

Are Florida sellers required to conduct a home inspection?

What are material defects under Florida disclosure laws?

What are latent defects and must they be disclosed in Florida?

Is a Florida home being sold ‘as-is’ exempt from seller disclosure laws?

What are seller disclosure obligations in the event something changes?

Are Florida sellers required to disclose HIV or a homicide, suicide or death?

What additional real estate disclosure obligations exist in Florida?

There is no statutory requirement for a Florida home seller to complete a property disclosure form. However, completing a property disclosure form is a prudent course of action for sellers as it facilitates compliance and mitigates the risk of running afoul of disclosure laws. 

However, the act of completing a property disclosure form does not indemnify a seller against omissions. This is because a standard disclosure form may not capture all items pertaining to a specific property.

Florida sellers are not required to hire a home inspector to check for items which the seller may not be aware of.

Seller disclosure obligations in Florida only cover known facts. If a seller isn’t aware of something, they’re not on the hook for failing to disclose it.

Examples of material defects include known defects or issues with a property’s roof, foundation, electrical, plumbing, mechanical systems. 

Additional examples include violations, disputes, litigation and environmental hazards such as lead, asbestos, mold and insect infestations.

Latent defects are defects or problems that are not immediately apparent or visible to the naked eye upon inspection or examination of a property.

Latent defects may include issues such as hidden structural damage, faulty wiring or plumbing, or the presence of hazardous materials such as lead or asbestos.

Florida home sellers are required to disclose known latent defects to a prospective purchaser.

No, a Florida home being sold “As-is” is not exempt from seller disclosure laws. A seller is still required to disclose any known defects or issues with the property even if the home is being sold “as-is”.

Failure to disclose known defects can result in legal liability for the seller, even in the case of an as-is home sale.

A Florida home seller is required to promptly notify the buyer if previously disclosed information becomes inaccurate or incorrect. 

The easiest way to do this is by completing the standard ‘Seller’s Property Disclosure Update’ form created by the Florida Association of Realtors.

No. Under Florida Statute §689.25, neither a prior homicide, suicide or death nor an occupant’s HIV diagnosis are considered material facts that must be disclosed in a real estate transaction.

Florida law mandates several additional disclosure obligations for home sellers and real estate agents.

Radon

Florida Statute §404.056(5) requires sellers to present buyers with a radon gas disclosure on at least one document, form, or application executed at the time of, or prior to, contract for sale and purchase of any building.

The specific disclosure language contained in Florida Statute §404.056(5) is shown below:

Coastal Properties

Florida Statute §161.57 requires sellers of property located partially or totally seaward of the coastal construction control line to provide prospective purchasers with a written disclosure at or prior to the time a seller and a purchaser sign a contract.

The specific disclosure language contained in Florida Statute §161.57 is shown below:

Additionally and unless otherwise waived in writing by the purchaser, at or prior to the closing of any transaction where an interest in real property located either partially or totally seaward of the coastal construction control line is being transferred, the seller shall provide to the purchaser an affidavit, or a survey delineating the location of the coastal construction control line on the property being transferred.

Homeowners Associations

For properties subject to HOA membership, Florida Statute §720.401 requires homeowners (and developers) to provide prospective purchasers with a disclosure summary before executing the contract for sale.

The disclosure summary must be in a form substantially similar to the following form:

Moreover, each contract entered into for the sale of property governed by covenants subject to disclosure required by this section must contain in conspicuous type a clause that states the following:

If the disclosure summary is not provided to a prospective purchaser before the purchaser executes a contract for the sale of property governed by covenants that are subject to disclosure pursuant to this section, the purchaser may void the contract by delivering to the seller or the seller’s agent or representative written notice canceling the contract within 3 days after receipt of the disclosure summary or prior to closing, whichever occurs first.

Condo Disclosures

Florida statute §718.503 requires sellers of condominiums to make several key disclosures to buyers. Required disclosure items include (but are not limited to) the condo declaration, articles of incorporation of the association, association bylaws and rules and the most recent year-end condo financial statement.

Moreover, the statute requires each condo contract for the resale of a residential unit to contain in conspicuous type either:

or

A contract that does not contain the aforementioned language is voidable at the option of the purchaser prior to closing.

Note that different disclosure laws apply to condominiums when being sold by developers.