Since there are no perfect houses, when it comes time to sell your imperfect home, just how honest do you have to be about its defects?
Basically, you should disclose anything that might affect a buyer’s decision to buy the property or anything that might influence the buyer’s offer. To accomplish this, pretend you’re the buyer of your own home.
If you list your home with a Florida Realtor, they will likely provide you with a Seller’s Property Disclosure form created by the Florida Realtors Association. While a Seller’s Property Disclosure form is not required under Florida law, the state still requires sellers and their Realtors to disclose any significant property defects that may not be easily visible to the buyer. If this sounds like a conflict, it’s really not. The form just provides the avenue whereby sellers can be reminded to provide the best information to a buyer that will protect them and provide a good faith and accurate disclosure to the buyer.
Some of the items the disclosure form will address are:
- Structures, systems and appliances being in working and in sound condition, and whether the home contains aluminum wiring,
- Termites, other wood-destroying organisms and pests relative to current activity, past treatment and damage,
- Flooding, drainage, mold, or water intrusion issues,
- Plumbing leaks, septic systems and wells, if applicable, relative to condition and potable water,
- Roof soundness, leaks, age, repairs you’re aware of and any other roof defects,
- Pool and hot tub condition and safety features,
- Any knowledge of sinkholes,
- Full disclosure of homeowner’s association restrictions and financial records,
- Lead-based paint and radon gas, if present,
- Government claims and litigation against the property, zoning violations or nonconforming use of the property.
Don’t put yourself in a position where a buyer can use anything against you down the road. In our area, the most significant areas of litigation pertain to water penetration and flooding. These are easy areas for a buyer to verify, so don’t fib. That said, you are only obligated to disclose what you know even if it’s something the buyer can’t see.
Is there anything that doesn’t have to be disclosed?
You don’t have to disclose the reason you are selling, and neither should your broker. This includes if you totally hate your next-door neighbor as long as the neighbor is not generally considered a nuisance except to you. You don’t have to disclose if someone passed away in the house and you definitely don’t have to disclose that your house is haunted even if you think it is.
So, put your buyer shoes on before you advise the seller or their broker about condition or fill out a disclosure form. Remember, Florida law requires a seller of a home to disclose to the buyer all known facts that materially affect the value of the property that are not readily observable or known by the buyer. Be as straightforward as you can be, and stay safe.
