What Are Seller Disclosures and Why Do They Matter?

Understanding Real Estate Disclosures in Florida

A disclosure is a critical part of every real estate transaction. It is a legally binding document where sellers must be transparent about property conditions that could negatively affect the value of the home. Failing to disclose required information can result in lawsuits and legal consequences. Sellers cannot rely on terms like “As Is” to avoid their disclosure obligations.

Both buyers and sellers benefit from understanding disclosure requirements. Sellers need to comply with the law to avoid legal trouble, while buyers should know their rights to receive important information about the property they intend to purchase.

Federal Disclosure Requirements

Certain disclosures are required nationwide. The most notable federal disclosure involves lead-based paint and lead hazards. Under the Lead-Based Paint Hazard Reduction Act of 1992, sellers must disclose known lead hazards in homes built before 1978. Sellers must also provide the EPA’s pamphlet, Protect Your Family from Lead in Your Home, and buyers have the right to conduct a lead inspection within 10 days (unless waived).

Other material defects must also be disclosed, though specifics can vary by state.

Florida-Specific Disclosure Requirements

In Florida, sellers are legally required to disclose facts or conditions that significantly impact the property’s value or that a buyer cannot reasonably discover. Required disclosures generally include:

• Radon: Naturally occurring, often found in Florida homes.
• HOA or Condo Membership: Fees and requirements must be disclosed.
• Property Taxes: Buyers should be informed that taxes can change after purchase.
• Coastal Risks: Information about erosion or regulations affecting coastal properties.
• Legal Issues: Any ongoing disputes, court proceedings, or property boundary conflicts.
• Sinkholes: Past or present occurrences must be disclosed.
• Environmental Hazards: Mold, asbestos, defective drywall, and lead.
• Pest Infestation: Significant infestations must be reported.
• Structural or Major Issues: Problems with roof, electrical, plumbing, HVAC, or major appliances.

Most of these disclosures are included on standardized Florida forms. Your real estate agent can help ensure compliance and may advise disclosing additional non-required items for transparency.

What Sellers Don’t Have to Disclose

Certain matters are not legally required to be disclosed in Florida, such as:

• Deaths in the home (including murders)
• Previous occupants with HIV/AIDS
• Prior use as a meth lab (unless damage materially affects the property’s value)

However, if asked directly, sellers should answer carefully. Misrepresenting information can lead to legal complications. Consulting a knowledgeable real estate professional is always wise.

How a Real Estate Agent Can Help

Experienced agents can guide both buyers and sellers through disclosure issues:

• Sellers: Ensure all required disclosures are completed properly and avoid potential legal pitfalls.
• Buyers: Research properties, identify potential concerns, and make informed investment decisions.

Mike Glisson, a native Floridian with three generations of Ormond Beachside family history, has extensive experience navigating Florida disclosure requirements. Whether you are buying or selling, Mike can help you handle all disclosure matters correctly, ensuring a smooth transaction and peace of mind.

Contact Mike Glisson today to learn more about his real estate services or to start the process of listing your home.