One of the most confusing documents for Florida home sellers during the process of selling a house is the seller’s disclosure document. This confusion is more so common for first-time sellers.
While every state has its own set of standards on disclosure and what is necessary when selling a property, both sellers and purchasers should be advised of what to anticipate.
To begin with a fundamental grasp of a sellers disclosure, it is a concise summary of any significant flaws or defects that may affect the value of a home.
Usually, minor wear and tear (such as scuff marks on a hardwood floor) is disregarded since they do not pose a substantial hazard to the new owner, but larger issues – such as flooding or a shifting foundation – must be disclosed.
The sellers disclosure form presents a comprehensive perspective of the ins and outs of the house to the new owner and certain expectations while also safeguarding the seller from any legal concerns in the future as well as a negative reputation.
A point to remember here is that Florida does not need sellers to submit information on the official form of the Florida Association of Realtors.
The only purpose of this document is to ensure that the seller is not hiding any information whatsoever regarding the property. Nobody likes unwanted surprises after being handed the keys over by the previous owner.
It is best to fill in these details on the official form as there is a lesser chance of missing out on certain details you may overlook (either by chance or purposely). The official sellers disclosure Florida form also ensures that you comply with all Florida legal requirements.
Although Florida law does not need a written disclosure, the same can be done verbally; nonetheless, this is not encouraged, since it would be your word against the new homeowner’s in the event of a dispute.
In the next 10 minutes, this article will help you crack everything you ever needed to know about the sellers disclosure in Florida.
Significance of Seller Disclosure
When selling a home, it is essential to be forthright and disclose any issues that the buyer should be aware of.
Consider the following reasons why it is imperative you to fill a sellers disclosure Florida form when selling a home in Florida:
No Unwanted Surprises
Disclosures facilitate the communication of the property’s defects. They ensure that all parties engaged in the transaction have access to the property’s history.
Keeps Legal Issues at Bay
If you accurately state the house’s known facts and problems, you won’t have to worry about issues during the inspection.
Personal Goodwill
When selling a home, honesty, truthfulness, and openness are essential. Disclosures are one method for achieving all of these objectives and enhancing your reputation.
What Do You Disclose in Florida Sellers Disclosure?
Residential Details
In this section, you must identify which items are installed and operational (unless otherwise stated) within the residence. Include any details on a refrigerator, gas or electric appliances or other utilities, bathroom mirror, dishwasher, in-ground pool, or solar panels.
Prior Legal Issues
The seller must indicate if the property is subject to any assessments, legal actions, or other encumbrances in this section. If local authorities have informed you that your home requires specific repairs, provide this information in your disclosure. This section provides details on any pending judicial or administrative action impacting shared areas (such as a neighborhood tennis court).
Restrictions of Condominium and Homeowner Associations
You must tell the new buyer of any required HOA dues and where they must be paid. Include any limitations imposed by HOA-like organizations, such as selling or leasing restrictions.
Structural Changes
Many homeowners may need to make a note of anything in this section, including structural damage (such as floods) and any upgrades made (such as the addition of a sunroom, or knocking down a wall). Don’t forget to include the names of any contractors you engaged in addition to the approvals that were obtained.
Presence of Harmful Substances
Are there any dangerous substances (such as asbestos, radon gas, and propane) on your home, or was there a cleanup that may have left chemical residue? Any residence constructed before 1978 is required to file a lead paint disclosure. Additionally, you must determine if your property is ecologically sensitive (such as a wetland) or historically significant.
Land Use
In this section, you must indicate if the driveway to your property is public or private, as well as whether your land is designated for its current use.
Roofing Related Information
In this section, you must enter the estimated age of your roof, if it has ever leaked, and any repairs or replacements. Include a digital copy of the roof’s warranty with the disclosure report.
Electrical System
Make a note of any troubles you’ve encountered with malfunctioning switches or electrical system damage. You should also investigate whether your property has aluminum wire (aluminum was used in the 1970s when copper prices were at their peak; although it’s a superior material, devices at the time weren’t intended to handle metal, so it might pose a fire hazard).
Pest Issues
In terms of residential insect concerns, Florida ranks first. If you’ve ever had an issue with termites or ants, even if you were able to address it, please write it here. Any issues with wood-destroying fungi should also be brought to light.
Flood Zone Information
Your home’s location in a flood zone might need additional flood insurance. If so, please indicate so here. Also addressed in Section 17 are border issues and shared access sites, such as a pier or well. Florida, unlike other states, does not require homeowners to disclose a home’s flood history, despite the state’s propensity for flooding; therefore, purchasers need be extremely cautious.
Real Estate Tax
This warning required by Florida Statute 689.261 advises that the transfer of ownership does not mean that the buyer will pay the same amount of taxes as the seller. Additionally, taxes may be evaluated due to property enhancements or changes in ownership.
Sinkholes
Due to the presence of limestone, which slowly dissolves when exposed to acidic water, sinkholes are common in Florida. Inform the new owner to keep note of any soil movement and sinkhole-related insurance claims.
Plumbing Matters
Mention it in the report if you have plumbing issues, such as problems with the water supply and sewage system. Include the age and condition of the septic tank as well (if you have one).
Any Additional Details
If someone, such as a tenant or an HOA, has the right of first refusal when it comes to the property’s sale, you must note it here. Section 18 further discusses homestead tax exemptions, ongoing judicial procedures impacting the property, and so forth.
What Happens If A Seller Misinforms In The Sellers Disclosure?
Home sellers frequently worry about how disclosing issues such as prior termite infestations will affect the desirability of their home, but they should remember that buyers expect certain flaws in the properties they purchase, and listing issues on the disclosure form does not render a home unsalable.
In the majority of instances, purchasers will instead seek concessions from the seller to cover part or all of the necessary repair costs.
If you are unsure about documenting something (such as a problem that has been completely resolved at the time of sale), it is usually best to capture it nevertheless. This decreases your future obligations. Real estate conflicts are common, and if you can avoid it, you should avoid engaging in a lengthy court struggle.
When completing the sellers disclosure, it is imperative that sellers declare the truth to the best of their knowledge in order to limit their potential liability resulting from non-disclosure.
What If a Seller Is Oblivious About Certain Defects?
You can opt for Flat Fee MLS Florida companies and assign them to take care of the paperwork. It’ll make your life easier and simpler. The seller’s disclosure duties are restricted to what the seller knows (or should be aware of). If you include your dishwasher in the sale of your home and accurately record its age, and it malfunctions during the first week of your ownership, you are not accountable.
Alternatively, if a crack in your basement wall leaks water every time it rains, you are expected to discover it; you cannot claim ignorance of an obvious, ongoing issue with your property. Therefore, it is essential for homebuyers to schedule house inspections, so that they may uncover any issues that the current owners are unaware of.
Conclusion
Real estate transactions can be complicated, with numerous opportunities for participant disagreement. To effectively navigate these muddy waters, it is advisable to seek the counsel of a Florida real estate attorney with vast expertise.
Florida’s seller disclosure regulations are a bit perplexing. Typically, selling your home on your own is a wise decision, but you will be responsible for all disclosures.
This mandates that you are well-versed in all disclosure regulations, since any mistake might be quite costly.
Therefore, it is advantageous to use the services of companies like Houzeo to handle sellers’ disclosure Florida matters and keep you out of legal trouble.
