Understanding Florida’s real estate disclosure laws is crucial for buyers to protect their investment and avoid surprises. By asking the right questions and getting a thorough inspection, buyers can ensure they are making a sound decision when purchasing a home. Keep in mind that the most important thing you can do in this area is choose your realtor carefully, selecting a team like us that has the experience you need to make a confident decision.
However, in addition to having the right team on your side, it’s helpful to understand real estate disclosures yourself.
What are real estate disclosures?
Real estate disclosures are documents or statements provided by the seller that disclose any known material defects or issues with a property. Each state has different requirements, so if you are relocating to or investing in a rental property, you may not be familiar with ours. These disclosures are required by law in most states, including Florida, to ensure transparency between the seller and buyer.
In Florida, the law mandates that sellers must inform buyers of any known issues that could significantly affect the property’s value or pose a danger to its occupants. This allows you to make an informed decision, and potentially renegotiate the terms of the sale if necessary.
Florida’s Disclosure Requirements
Florida law requires that sellers disclose any known material defects that are not immediately visible or obvious to the buyer. A material defect refers to an issue that would affect the property’s market value or safety. Sellers must provide this information to potential buyers, even if the buyer doesn’t specifically ask for it.
These are some of the disclosures that are common to see in Florida:
- Structural Issues: Sellers must disclose any issues with the foundation, roof, or structural integrity of the home. This can include cracks, water damage, or any previous repairs related to structural problems. Before buying a home with any serious structural issues, you need to be extra cautious.
- Water Damage and Mold: If there has been previous flooding, water intrusion, or any mold-related issues, the seller must disclose this. Florida’s humid climate, in addition to tropical storms and flooding, makes mold and water damage a particular concern, so buyers need to know if the property has had any past or present moisture issues.
- Pest Infestations: Florida’s warm climate can attract pests, such as termites or rodents. Sellers must disclose if the property has experienced infestations or has a history of pest problems, which helps you make an informed purchase.
- Property Boundaries and Easements: Any disputes over property boundaries or easements must be disclosed, as they could affect how you can use the property after becoming the owner.
- Homeowners Association (HOA) Rules and Fees: If the property is part of a homeowners association (HOA), the seller must inform the buyer of the HOA rules, fees, and any outstanding violations. Florida law requires that the buyer be given a copy of the HOA’s governing documents. This will be particularly helpful if you’re buying a condo or a home in a gated community, where the HOA makes a big impact on your life.
- Lead-Based Paint: If the home you’re look at was built before 1978, federal law requires that the seller provide a disclosure about the potential presence of lead-based paint. This is not exclusive to Florida, and applies nationwide. It’s important to pay attention because of the health hazards presented by the presence of lead paint.
Unique Floridian Disclosures
Florida is a unique place to live, and as you might expect there are also some real estate disclosures unique to our state. You might see disclosures like these when you’re house hunting:
- Radon Gas Disclosure: Florida law mandates that sellers disclose the possibility of radon gas, which is a naturally occurring radioactive gas, being present on the property. Although testing is not required, the disclosure ensures that buyers are aware of the potential risk. You can decide if you want to include radon testing as a contingency in your offer.
- Energy Efficiency Disclosure: Sellers are required to provide buyers with a Florida energy-efficiency rating system brochure. This system provides information on energy efficiency in homes and helps buyers understand potential future utility costs. Air conditioning and irrigation water in particular can be a top concern, especially for those coming from a climate where these were not year round utilities.
- Flood Zone Disclosure: Flood risk is a significant concern in coastal parts of Florida (like Panama City Beach), so sellers must disclose whether the property is located in a flood zone. Remember that if you buy a home in a flood zone you may be required to purchase flood insurance, so this is an important consideration.
- Sinkhole Disclosure: Sinkholes are a known hazard in certain areas of Florida. If the property is located in an area prone to sinkholes or has experienced any sinkhole activity, the seller must disclose this to you.
- Septic System Disclosure: If the home uses a septic system instead of being connected to a public sewer, the seller must disclose the presence and condition of the septic system. The seller should also provide information about the system’s maintenance and any past repairs or problems.
- Chinese Drywall Disclosure: This one is unique. Homes built or renovated between 2001 and 2009 may contain Chinese drywall, which can emit sulfurous gases and cause damage to electrical systems. Sellers must disclose the presence of Chinese drywall if known, as it is a health hazard and may require costly repairs. You’ll want to remove and replace it if this is present.
The key to navigating all of these disclosures is choosing a real estate team you can trust, and we can help. Ready to learn more about buying a home in Panama City Beach? Contact us any time.