Talk of The Villages Florida - View Single Post - Sinkholes displace two Villages homeowners
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Old 06-30-2012, 11:43 AM
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Betty in short not correct according to this lawyers site.

This question crosses two separate categories, one involving the sinkhole laws, and one associated with the sale of residential real estate. Under the sinkhole law, specifically, Section 627.7073(2)(b), Florida Statutes, ”[t]he seller of real property upon which a sinkhole claim has been made by the seller and paid by the insurer shall disclose to the buyer of such property that a claim has been paid and whether or not the full amount of the proceeds were used to repair the sinkhole damage.” Make sure to note a couple of things in this statute. The statute says the seller or property who both “makes” a claim and had the claim “paid by the insurer” shall disclose it the buyer. If you made a claim and it was not paid, you would not fall within this statute, and would not be required to disclose it.

Having said that, you must then turn to the laws associated with the sale of residential real estate. There is a Florida Supreme Court case called Johnson v. Davis directly on this issue. Under the Johnson case, where the seller knows of facts materially affecting the value or desirability of the property which are known or accessible only to him and also knows that such facts are not known to or within the reach of the diligent attention and observation of the buyer, the seller is under a duty to disclose them to the buyer. I assume you filed the insurance claim due to the fact you had discovered damage, at a minimum, you associated with a condition near or beneath the home. As such, depending on the nature of the resolution of that problem, you could be under a separate requirement to disclose the problem, while not necessarily having to tell them about having filed an insurance claim. If you received positive information in the engineering report , you could consider disclosing that to them, which could resolve much of your duty. I would urge you to consult directly with counsel or with a professional realtor about the specific facts of your home before you make this decision.
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