Quote:
Originally Posted by TrudyM
Reading the posts here by people who bought new from the developer and didn't know this was a sink hole problem area, I did a microsoft search and found that FLA has no real estate disclosure law. That case law holds the seller responsible for "material defects" that where not disclosed to the buyer, but no state required disclosure form or law on the books. Is this right? And wouldn't the possibility of sink holes be a "material defect". I am not concerned about sink holes, I am concerned that people where not informed so they could get the correct insurance.
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While there is no statutory law in Florida that mandates the disclosure of the condition of residential property by a seller to a buyer, the 1985 Florida Supreme Court case of Johnson v Davis, 480 So.2d625 requires:
...that where the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them to the buyer. This duty is equally applicable to all forms of real property, new and used.
With the Johnson decision, the previous common-law doctrine of caveat emptor, or buyer beware, in the sale of residential property in Florida was abolished. In addition, subsequent case law has applied the disclosure requirements to the agent of the seller.
Applying this to reality gets sticky. If you are selling a house that has a sink hole under it and you are aware of it then it is obvious you must disclose it. On the other hand if there are sink holes in the area but not "close" to the subject house must you disclose it? That is a rhetorical question and I am not going touch it with a ten foot pole.