What Is Disclosure in Real Estate?
Florida follows the legal principle of caveat emptor ("buyer beware") with critical exceptions. While Florida does not require sellers to use a standardized disclosure form (unlike many other states), sellers ARE legally required to disclose material facts that affect the property's value or desirability and that are not readily observable by the buyer.
The landmark Florida Supreme Court case Johnson v. Davis (1985) established the modern disclosure duty: a seller must disclose facts "materially affecting the value of the property which are not readily observable and are not known to the buyer."
What Must Be Disclosed
- Known Defects — Roof leaks, foundation problems, plumbing issues, electrical hazards, mold, termite damage, and other physical defects the seller knows about.
- Environmental Issues — Prior flooding, soil contamination, underground storage tanks, lead paint (pre-1978 homes), Chinese drywall, and proximity to Superfund sites.
- Legal Encumbrances — Pending lawsuits, code violations, open building permits, liens, easements, and boundary disputes.
- HOA/Condo Issues — Pending special assessments, ongoing litigation, reserve funding deficiencies, and structural inspection findings.
- Stigmatizing Events — Florida does not require disclosure of homicides, suicides, or deaths on the property. However, sellers must answer truthfully if directly asked.
Consequences of Non-Disclosure
A seller who fails to disclose a known material defect faces liability for fraud or negligent misrepresentation. The buyer can sue for damages (cost of repair), rescission (undoing the sale), or both.
Related Terms
- Fraud — The legal claim for intentional non-disclosure
- Due Diligence Period — The buyer's window to discover undisclosed defects
- Damages — The financial recovery for non-disclosure
Barnes Walker Disclosure Compliance
Barnes Walker's real estate attorneys counsel Florida sellers on comprehensive disclosure compliance and represent buyers who discover undisclosed defects after closing, pursuing fraud and rescission claims to recover our clients' losses. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC