When selling a home in Florida, there are specific disclosure requirements that sellers and their real estate agents must follow. These requirements are designed to ensure that buyers are fully informed about certain aspects of the property that could affect its value or desirability. This article provides a detailed look at what is required under Florida statutes, including whether sellers need to disclose if someone died in the home or if a code enforcement case is pending.
Material Facts
In the landmark case Johnson vs. Davis, the Florida Supreme Court established that sellers must disclose any facts that materially affect the value of the property, especially if those facts are not readily observable and unknown to the buyer. This legal obligation also extends to real estate licensees. According to Section 475.278, Florida Statutes, all licensees are required to disclose all known facts that materially affect the value of residential real property if those facts are not readily observable to the buyer.
It's important to note that these disclosures can be made verbally or in writing. However, it is highly recommended that the disclosures be made in writing to create a record that can be referenced if any disputes arise later.
Selling "As Is"
Even if a home is being sold "as is," the seller is still obligated to disclose known latent defects. In Rayner vs. Wise Realty Co. of Tallahassee, the First District Court of Appeal confirmed that the same disclosure requirements apply to residential properties being sold as is. This means that sellers cannot use an "as is" sale to avoid disclosing defects that they are aware of.
Deaths in the Home
One common concern among buyers is whether they need to be informed if someone died in the home. Under Section 689.25(1)(b), Florida Statutes, a homicide, suicide, or death that occurred on the property is not considered a material fact that must be disclosed in a real estate transaction. Therefore, sellers are not legally required to inform buyers about any deaths that may have occurred in the home.
Code Enforcement Cases
While the statutes do not specifically address pending code enforcement cases, sellers should consider whether such information might materially affect the value of the property. If a pending code enforcement case could lead to significant fines or required repairs, it would likely be considered a material fact that must be disclosed to the buyer. The principle established in Johnson vs. Davis would suggest that such information should be shared if it is known to the seller and not readily observable to the buyer.
Conclusion
In Florida, sellers and their real estate agents have a duty to disclose any material facts that could affect the value of the property, especially if these facts are not readily observable to the buyer. While deaths in the home do not need to be disclosed, other issues such as latent defects or pending code enforcement cases should be. Making these disclosures in writing is strongly recommended to protect all parties involved in the transaction. By following these guidelines, sellers can help ensure a fair and transparent real estate transaction process.
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