Question 1

What is a latent defect in Florida real estate?

Accepted Answer

A latent defect is a hidden condition in a property that is not discoverable through a reasonable inspection. Unlike a patent defect (which is visible and obvious), a latent defect is concealed and can only be discovered through specialized testing, invasive inspection, or expertise. Common latent defects in Florida include: hidden water damage behind walls or under flooring, concealed mold growth, foundation problems not visible from the surface, underground storage tanks, faulty wiring hidden behind walls, plumbing defects (polybutylene pipes, hidden leaks), termite damage concealed by repairs, and environmental contamination in the soil or groundwater. Under Johnson v. Davis, Florida sellers must disclose latent defects they know about, even if the buyer cannot see them.

Question 2

What is the seller’s disclosure obligation for latent defects in Florida?

Accepted Answer

Disclosure obligation: the seller must disclose all known latent defects that materially affect the property’s value. The disclosure must be: in writing (oral disclosures are difficult to prove), made before the buyer is contractually committed (ideally at or before the time the contract is executed), specific about the nature and extent of the defect (vague disclosures may be insufficient), and honest (misrepresenting the severity of a known defect is fraud). The seller is not required to disclose defects they do not know about (the standard is actual knowledge, not constructive knowledge). However, a seller who deliberately avoids learning about a condition may be found to have constructive knowledge.

Question 3

What remedies does a Florida buyer have for undisclosed latent defects?

Accepted Answer

Remedies: rescission (voiding the contract and returning both parties to their pre-contract positions), compensatory damages (the cost of repairing the latent defect), diminution in value (the difference between the purchase price and the property’s value with the defect), consequential damages (relocation costs, temporary housing, lost rental income), and punitive damages (if the seller’s concealment was particularly egregious, such as actively hiding evidence of the defect). The buyer must prove: the defect existed at the time of sale, the seller knew about the defect, the seller failed to disclose, and the buyer relied on the non-disclosure. The statute of limitations is 4 years from discovery.

Latent Defect

Latent Defect Disclosure in Florida

Common Latent Defects

Seller’s Obligation

Buyer Remedies

Related Terms

Barnes Walker Real Estate Litigation

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