Every home has its own unique charms. They also frequently have issues that affect the use of the property. For example, it may be all but impossible to open the aged windows at a property when humidity levels are high. The wiring in a home may be old enough that using every outlet in a room might pop a fuse in the breaker box.
Those issues with the property can have an influence on its value on the real estate market. Buyers often determine what they feel a property is worth based in no small part on its current condition. Some buyers may offer less for properties with serious defects, while others may bypass them entirely because they don’t want to make repairs or cannot afford to finance them.
Inspections help buyers identify defects. Sellers also have an obligation to disclose issues with the property. Agents typically need to help ensure that the sellers they represent comply with disclosure requirements.
What do sellers need to disclose?
According to the Florida courts, those listing real property for sale have to make thorough disclosures about any known property defects. That includes any latent defects that can be hard to identify, such as wiring or foundation issues.
Any property issues that could have a direct impact on the value of the property required disclosure. The standard form used by sellers when listing their properties includes all of the major systems in the home. Sellers can provide details about known defects or can attest that they are uncertain of the condition of certain systems. They should not misrepresent the condition of the property.
In some cases, an inspection prior to the closing may turn up defects not included in the disclosure documents. The seller may not even be aware of those issues. In those situations, it may be possible to move forward with the transaction after making some adjustments.
Other times, issues with a property may come to light after the closing. In such cases, the sellers or possibly even their agent could face allegations of failing to make necessary disclosures. Professional insurance coverage can help offset this risk in some cases. In other scenarios, disputes about property defects may result in post-closing litigation.
Agents generally need to ensure that their clients understand the importance of disclosures prior to listing a residential property for sale. Learning more about disclosure statutes can help agents protect themselves and the clients who hire them.