If you are selling your home with a real estate agent, you will be asked to complete a "seller's disclosure". This is a section of a standard Florida listing contract which simply states that you have disclosed all the "material facts" that may affect your home's value or desirability. The Florida Supreme Court decision of Johnson vs. Davis requires full disclosure to the buyer of all facts and defects which materially and adversely affect the property covered in the listing agreement. On the listing agreement there is a space for the seller to list any problems or defects of the house. Today, the old maxim of "buyer beware" is no longer a defense.
When someone makes an offer to buy your home and you and the buyer agree to all the terms, you will be asked to sign the purchase contract to confirm the transaction. The Florida Association of Realtor's Contract for Sale and Purchase clearly states that the "ceiling, roof, interior and exterior walls, seawalls and dockage do not have any VISIBLE EVIDENCE
of leaks, water damage or structural damage and that the septic tank, pool, all appliances, mechanical items, heating, cooling, electrical, plumbing systems and machinery are in WORKING CONDITION."
As tempting as it may be to leave off "minor problems" like a roof that leaks only after monsoon-style rains...don't do it. By law you must reveal any problems with the home, big or small that may not be readily observed by a potential buyer and which may affect the home's value or desirability. As a seller, you may open yourself up to possible future lawsuits if you "forget" to disclose imperfections in your home. A tragic case in point concerned a seller in Vermont who failed to disclose to the buyers that there was a problem with a gas-powered driveway heater. The buyers completed the transaction and moved into the house. A short time later, the husband and wife along with their daughter were killed by carbon monoxide that had leaked into the house from the faulty driveway heater vent. The seller was charged with criminal non-disclosure. He was convicted of involuntary manslaughter and sentenced to prison.
Remember, honesty and common sense are still the best policies.
Although these articles were originally slanted toward Florida real estate dealings, they offer numerous practical applications for buyers & sellers wherever they reside. Real estate regulations, rulings, contracts and conditions vary in different states. Some references may not be appropriate to certain individual circumstances. Readers should seek current local information in their own specific region of the country.
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