When you attempt to sell a property, it takes more than just finding a buyer and signing a contract. State law requires you to disclose certain information. Understanding why can help you avoid legal complications down the line.
The “known facts” standard
Florida courts have held that if you know of facts that materially affect a property’s value and those facts are not easy for a buyer to observe, you have a duty to disclose them. This standard forms the foundation of seller disclosure obligations in the state. This also applies even if you sell the property “as is.”
The obligation rests on key elements: a fact must exist that materially affects the property’s value, you must be aware of it, the defect must not be readily observable during a normal inspection and the fact must not already be known to the buyer. This covers both past and present conditions, so a defect you previously repaired may still call for disclosure.
The statutory obligations for sellers
Florida law require you to disclose specific information tied to a residential sale, such as:
- Radon gas: State law requires a written warning in the sales contract about radon, a gas that occurs in nature and can build up inside buildings across the state.
- Flood history and risk: You must complete a flood disclosure form before executing the sales contract. As of October 2024, this includes disclosing past flood damage, flood-related insurance claims and any assistance received from the Federal Emergency Management Agency.
- Property tax reassessment: State law requires you to provide a property tax disclosure summary notifying the buyer that a change of ownership may trigger a reassessment and higher taxes.
- Homeowners association (HOA) or condominium association : You must inform the buyer of mandatory association membership, assessments and governing documents before closing.
Navigating these distinct mandates demands precise timing and a firm grasp of the state-approved formats to keep your transaction moving forward.
The property conditions to disclose
Not every disclosure obligation appears in a statute. Florida’s common law standard also requires you to flag:
- Structural defects: Known issues with the foundation, roof or framing that are not visible during a showing fall within the scope of required disclosures.
- Sinkhole activity: Past sinkhole activity on or near the property is the type of condition a buyer would likely consider material to the transaction.
- Pest infestations: A history of termite damage or ongoing infestations represents the type of latent defect that disclosure obligations cover.
Being proactive about past damage or structural concerns takes the guesswork out of the buyer’s inspection period. This straightforward approach can help protect you from post-sale legal complications.
The consequences of nondisclosure
A seller who fails to disclose a known defect may face a range of legal consequences, such as being sued for fraud and being forced to pay for extensive mold remediation. Florida courts have treated willful nondisclosure as a form of concealment, which can give rise to both money damages and punitive damages. The costs can extend beyond repairs to include lost property value and legal fees.
As a seller, reaching out to an attorney can help you avoid these risks. They can review your property disclosure forms and sales contracts to verify that all obligations are met.
