States are cracking down on sellers' obligation to disclose known material facts about properties for sale especially conditions not readily apparent, such as a cracked foundation. A material fact is anything that could affect the sale price or influence a buyer's decision to purchase a home. The major cause of post-sale disputes and lawsuits involve defects and disclosure. Most disputes can be avoided if proper disclosures are made.

Duty of Seller to Disclose
Full written disclosure of property condition is a vital part of the marketing and sale of any property. Properties with written disclosures tend to be more appealing to buyers than those without.

Full written disclosure makes it clear to buyers that the list price of your property reflects its disclosed condition. Disclosure helps reduce misunderstandings that can lead to delayed closing, re-negotiation, and even litigation.

Most states require some form of seller disclosure. In the case of Johnson v. Davis, the Florida Supreme Court held that the seller had a duty to inform the buyer of the residential property and about any known property defects that materially affect the homes value.

In another case, Dorton v. Jensen, the court interpreted Johnson v. Davis by assessing subjectively how the disclosure would have affected materially. This could expand the application to include situations where the defect may not have a material effect on value. The only sellers excluded from disclosure laws are banks and mortgage companies with foreclosure properties.

Sellers Disclosure Form- click here!

Radon Disclosure

Section 404.056(7), F.S., requires a mandatory radon disclosure at the time or before a person, enters into a contract for sale and purchase or a rental agreement.  Florida law does not require testing to determine radon levels before sale or lease.  Neither does the law require, that the notification be acknowledged by a signature.

The required Radon Disclosure Language

“RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department”

For more information about radon, call the national hotline at
800-SOS-RADON.

LEAD-BASED PAINT DISCLOSURE

In addition to state mandates, federal law requires sellers to make specific disclosures. Federal law, for example, requires sellers on homes built before 1978 to disclose any known Lead hazards. The law requires that the seller provide the following information before a buyer signs a contract.

•  Lead hazard information pamphlet
• Disclosure of the presence of any known lead-based paint or lead based paint hazard
• Ten-day period to conduct an inspection

A lead warning statement must be attached to the contract. To learn more about this law  click here!