What Is a Property Disclosure Statement?
A property disclosure statement is a form in which a seller discloses known conditions and defects of the property to a prospective buyer — issues like roof leaks, prior flooding, structural problems, or system defects. It gives buyers material information about what they are buying and creates a written record of what the seller represented.
Florida's Disclosure Duty
Florida imposes a significant duty to disclose. Under the landmark case Johnson v. Davis, a seller of residential property must disclose facts materially affecting the value of the property that are not readily observable and are unknown to the buyer. This duty applies even to "as is" sales: "as is" limits the buyer's right to demand repairs, but it does not excuse a seller from disclosing known hidden defects.
Why It Matters
- A completed disclosure helps the buyer make an informed decision
- It protects the seller by documenting what was revealed
- Failing to disclose a known, material, hidden defect can expose a seller to liability after closing
Related Terms
- Disclosure — The broader duty to reveal material facts
- As-Is Contract — Limits repairs but not the disclosure duty
- Latent Defect — The hidden problem that must be disclosed
Barnes Walker Real Estate
Barnes Walker's real estate attorneys advise Florida buyers and sellers on disclosure obligations and post-closing defect claims. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC