Seller Disclosure in Florida: Things to Disclose, Exemptions, and Penalties 🚩

Over 58% of buyers had their agents point out unnoticed faults in a house just before or after the sale. Florida law requires sellers to disclose known issues, yet 60% don’t. This can lead to legal disputes and other penalties for the seller.

Houzeo supports you with the real estate disclosure in Florida when listing on the MLS, and other compliance risks. Sellers benefit from transparency and avoid penalties, while buyers enjoy a smoother, more informed experience.

What Is a Seller Property Disclosure in Florida?

A seller’s disclosure in Florida is a legal document that outlines your home’s current condition and history. In the form, you must disclose any known defects affecting the property’s value, including structural issues and environmental hazards. This is to help the buyer decide whether to purchase the house.

Is a Seller Disclosure in Florida Mandatory?

Florida law requires home sellers to disclose any material facts or conditions that affect the property’s value or desirability.

This is rooted in the landmark Florida Supreme Court case Johnson v. Davis, 480 So. 2d 625 (Fla. 1985). Here, the court established the seller’s duty to disclose latent defects that could influence a buyer’s decision.

What Must You Disclose on the Seller’s Disclosure in Florida?

Ensure that you include these issues on your seller disclosure form in Florida:

1. Material Defects

• Structure and Appliances: Disclose whether the HVAC, electrical, and mechanical systems are up to date and report any problems, such as leaks.
• Drainage and Flooding: Share details of past flood damage claims. Properties with mortgages in high-risk flood zones like Volusia County, Miami-Dade County, St. Johns County, etc., must have flood insurance.
• Plumbing: State the source of potable water and any issues with it. Also, mention if there are unused wells or tanks on the property or problems in the sprinkler or plumbing systems.
• Pools, Hot Tubs, and Spas: Highlight safety features like enclosures and barriers. Florida law mandates that all pools built after October 2000 meet the safety guidelines in the Residential Swimming Pool Safety Act.

2. Code Violations

• HOA Restrictions and Boundaries: Florida law requires homeowners to be members of the HOA. Consequently, you must disclose HOA fees and resale and lease restrictions.
• Government Restrictions: Reveal any violations of zoning rules, construction breaches, safety codes, or restrictions on property additions. Also, disclose any unrecorded liens.

3. Environmental Hazards

• Environmental Hazards: Disclose the presence of lead-based paint, asbestos, mold, or radon gas. Also, mention any past environmental damage or repairs and specify if there are any sensitive areas like mangroves.
• Infestations: Report any termite or pest infestations and if they’ve caused structural damage.
• Sinkholes: Disclose the existence of any sinkholes or geographically weak areas nearby that might be susceptible to caving in. Also, include any past claims you’ve raised related to these issues.

4. Federal Disclosure Requirements

If your house was built before 1978, you must disclose any lead-based paint hazards. According to the Lead-Based Paint Hazard Reduction Act of 1992, sellers must:

• Provide an EPA-approved pamphlet on lead hazards.
• Include the Lead Warning Statement in the contract.
• Disclose any known lead-based paint on the property.

What Can You Skip in a Florida Disclosure Statement?

• Information about any suicide or death on the property due to natural or accidental causes unrelated to its condition.
• Details about a registered sex offender living in the vicinity.
• Any belief that the property is haunted.
• Whether any previous occupants had AIDS or HIV.

What Is the Penalty for an Incorrect Florida Home Disclosure?

You might face one or more of these 4 penalties if you lie or omit information on your Florida seller disclosure agreement:

1. Lawsuits for Damages: If you don’t disclose major defects, the buyer can sue you for repair costs. However, they must prove that you knew about the defect and deliberately withheld the information.
2. Contract Rescission: The buyer can withdraw from the contract if they discover that you intentionally or unknowingly failed to disclose critical information. They can also seek reimbursement for expenses already incurred.
3. Fraud Charges: If you knowingly provide false information or omit material facts, you may be liable for civil fraud. You may have to pay hefty financial penalties, including compensatory and punitive damages.
4. Legal Fees: If the buyer wins a lawsuit, you may be responsible for both the damages and also the buyer’s attorney fees. This significantly increases your financial burden.

How to Minimize Issues in the Florida Seller Disclosure Form?

• Complete a Pre-Sale Inspection: Fix the issues highlighted in the pre-sale home inspection. This reduces the number of defects you have to disclose.

• Review the Disclosure Carefully: Check for unclear wording or missed disclosures. If you don’t comply, it can lead to legal issues or the buyer backing out of the sale.

• Keep All Bills and Records: They act as supporting documents to your seller disclosure. They also prove that you have addressed any known issues.

• Consult With Professionals: If you’re unsure about the disclosure agreement, consult a real estate attorney in Florida. They understand local laws and can help you with the seller disclosure requirements.

How Important Is the Seller’s Disclosure Statement in Florida?

The seller disclosure statement is a crucial element of any real estate deal in Florida. It keeps the transaction transparent and the buyer aware of any defects in the property.

That’s why you must be honest and accurate when filling out the seller disclosure. Missing any form or giving false information could get you into serious legal trouble.

Frequently Asked Questions

• Florida
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• Seller Disclosure