Question 1

What is a material defect in Florida real estate?

Accepted Answer

A material defect is a condition that significantly affects the value, desirability, or safety of a property. In Florida, sellers have a duty to disclose known material defects to buyers (Johnson v. Davis, 1985). Material defects include: structural defects (foundation cracks, roof damage, load-bearing wall issues), water intrusion (roof leaks, plumbing leaks, water damage, mold), environmental hazards (asbestos, lead paint, radon, contaminated soil or groundwater), mechanical system failures (HVAC, electrical, plumbing), pest infestation (termites, wood-destroying organisms), zoning or code violations (the property does not comply with current zoning or building codes), and title defects (liens, encumbrances, boundary disputes). Florida Statute Section 689.25 also requires disclosure of material defects.

Question 2

What is the Florida seller’s disclosure obligation?

Accepted Answer

Disclosure obligation: under Johnson v. Davis (1985), a Florida seller must disclose: facts known to the seller that materially affect the value of the property, facts that are not readily observable by the buyer (latent defects), and facts that are not known to the buyer. The disclosure must be: accurate and complete, made before the buyer is bound to the contract (ideally before contract execution or during the inspection period), and in writing (though oral disclosure may satisfy the legal requirement, written disclosure provides better evidence). Failure to disclose: the buyer can rescind the contract, sue for damages (the cost to repair the defect, the difference in value, consequential damages), and in some cases, seek punitive damages (if the seller’s concealment was willful or fraudulent).

Question 3

What is the difference between a material defect and a latent defect?

Accepted Answer

Distinction: a material defect is any condition that significantly affects value or safety (it can be visible or hidden). A latent defect is a hidden defect that is not discoverable by a reasonable inspection (it is not visible or apparent). All latent defects that are material must be disclosed. Not all material defects are latent (some are visible/obvious). The seller has a stronger disclosure obligation for latent defects because: the buyer cannot discover them through normal inspection, the buyer relies on the seller’s knowledge of the property, and concealment of a latent material defect may constitute fraud. An obvious material defect (visible damage, for example) does not need to be disclosed because the buyer can observe it during inspection.

Material Defect

Material Defects in Florida Real Estate

Types

Seller’s Obligation

Material vs. Latent

Related Terms

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