[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 realestate 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 posiblility 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.

[downeaster]

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.

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.

[conn8757]

I think all of Florida is sinkhole prone - it is not necessarily more so in the Villages. That's why we have so many lakes all over the state. It happens in Orlando - a huge one about 20 years ago that took a dry cleaner, a car lot and some homes. It happens all over the state.

[downeaster]

Originally Posted by conn8757

I think all of Florida is sinkhole prone - it is not necessarily more so in the Villages. That's why we have so many lakes all over the state. It happens in Orlando - a huge one about 20 years ago that took a dry cleaner, a car lot and some homes. It happens all over the state.

A lot of the sink holes in The Villages occur in the man made ponds as a result of digging the top layers down close to the limestone layer. This then lets the water build up adding extra pressure which causes what once may have been a seep into a torrent.

[Bryan]

I would think that disclosing that a home is Florida in prone to be affected by a sink hole is akin to disclosing that a home in California is prone to be affected by an earthquake.

Anyone know what the rule is in California?

[TrudyM]

I was responding to the fact that many on the sinkhole thread had said they didn't know when they bought and didn't get the insurance. Everybody knows about Calif earthquakes but sinkholes in Fla don't make the national news that I can remember.

Also sinkholes aside if there is no disclosure statement required in FLA even with the underlying liablility existing in th law people have to be extra careful when buying. That is all I was saying. Previous extensive termite damage, a fire that may have effected the loadbearing parts of the home. Radon etc. additions without building permits, these are all things I have run into in our moves around the country that the inspectors didn't pick up as they were not visable. A disclosure statement has been an ademdum to every contract I have had in reacent years (its standard practice in WA and many other states now) and it made me feel alot better. The realators in some states have added it to limit their liability.

[conn8757]

I just closed on my home in Orlando and there was a disclosure section.

[downeaster]

[QUOTE=TrudyM;209629]I was responding to the fact that many on the sinkhole thread had said they didn't know when they bought and didn't get the insurance. QUOTE]

We kinda' get off track in these threads, Trudy. I hope your point relative to insurance didn't get lost.

[Club A]

I believe that any Real Estate Licensee must disclose any material defect that is not reasonably obvious. If the buyer relies on a false statement or the lack of disclosure by a licensee who knew or should have known - and is injured, the licensee can be sued, fined, jailed, and/or lose the right to practice. However, people who sell for an owner/developer (like new homes in The Villages) do not have to be licensed if they work for a salary and not for commission. Check with a Real Estate Attorney.

[Bonanza]

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 realestate 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 posiblility 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.

I have been a real estate agent since 1984. While I can't remember clearly from 1984, I can tell you for many years (here in Florida) it was mandatory that I have a seller complete a "Seller's Disclosure." The disclosure deals with many aspects of the property and does deal with defects, and there is a specific question that deals with "soil movement." When taking a resale listing, the owner had to complete that form; it was part of the listing package. When the property went under contract, the buyer had to sign that same form indicating that he understood and agreed to what was indicated in the form.

Now, the only thing I can tell you is that I dealt primarily in resales. When I would take a customer to a new home site, the on-site salesperson would literally "take over" and handle the entire transaction. Truthfully, I don't know if a Seller's Disclosure is required for new construction, but new or old -- I feel it should be.

I do not recall any such form when my husband and I purchased here in The Villages.