Do Sellers Have to Fill Out a Seller’s Disclosure?
Florida law requires the seller of a home to disclose to the buyer all known facts that materially affect the value of the property being sold and that are not readily observable or known to the buyer. To aid in fulfilling this law, the seller often fills out the Florida realtors Sellers Property Disclosure – Residential (SPDR) form at the same time they enter into a listing agreement with a broker.
The SPDR forms covers areas including structural soundness of roof, walls, windows, foundation etc., whether major appliances and the sprinkler system is operable, the presence of termites, past or present water intrusion, whether the home is in a designated hazard area, or if there are drainage problems. Plumbing issues such as the flow and cleanliness of drinking water, and whether there are any leaks that are not readily visible must also be disclosed. The form also covers issues such as sinkholes, settling and soil movement. Finally, the SPDR asks about homeowners’ association restrictions, environmental issues, litigations or claims unknown to the buyer and zoning issues. Also, the buyer must be informed of any property improvements and whether they were done in accordance with the law.
Whether this specific SPDR form is used or not, the law requires these issues to be addressed by the seller. This law was established in the case of Johnson vs Davis. The Florida Supreme Court decided that, “Where a seller of a home knows of facts that materially affect the value of the property which are not readily observable and are not known to the buyer, the seller is under duty to disclose them to the buyer.”
Also, in Rayner vs Wise Reality Company, the First District Court of Appeals in Tallahassee stated that the same disclosure requirement applies to residential properties that are being sold “as is.”
Although the written SPDR form is not required (disclosures can be made verbally), many real estate attorneys recommend that disclosures be made in writing to avoid confusion.
The SPDR includes safeguards (including the sellers signature) to ensure that the seller filled out the form rather than the broker who may not know nearly as much of the latent issues discussed earlier. As an extra safeguard, the top of the form states: “Notice to licensee and seller – only the SELLER should fill out this form.”
Therefore Florida law, through the courts, have succeeded in making it very difficult for unsavory sellers of residential real estate to succeed in a deception.