Disclosures In Realestate

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caveat emptor

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latin phrase meaning, "leet teh buyer beware."

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Full disclosure means

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that the seller must disclose to a buyer all facts materially affection the value of the property which are not readily observable and are not know to the buyer. comes from Johson v. davis court decsion

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disclosure

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written statement provided by a seller to a prospective buyer to make the buyer beware

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seller's duty of full disclosure

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Property must be residential
the seller must know that the property defect or condition actually exists
the defect must be material
It must be a latent or hidden defect (cannont be observed by the average buyer)
the buyer does not personally know about the defect

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material defect

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is one that would cause a buyer not to buy the property or offer a lower price

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what is one of the most critical responsibilities placed on a real estate associate and broker?

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to see that the seller meets the duty of full disclosure
Rayner v. Wise realthy Co. of Tallahassee

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"As is" property

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in its existing condition, this does not relieve a seller from teh responsibility to disclose all konw material defects to a buyer, it just means the sller with not be resonsible for the cost of repair

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Energy-efficiency

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buyer must be given an energy efficiency information brochure prior to signing a sale and purchase contract. This brochure notifies the buyer of an option for obtaining an energy efficieny rating on the building and may qualify theym for an energy efficient mortage.

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insulation discloruse (new homes only)

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sellers must disclose in a sales contract the type, thinkness and R-Value (resistance to heat loss) of the insulation that has been or will be installed

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radon gas

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is a colorless ordorless gas that is a carcinogen

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EPA (environmental protection agency and surgeon general have recommended that all houses be tested for Radon, what must a realtor tell the seller?

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if there is a potential problem with Radon

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lead disclourse

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pertains to residential housing built before 1978 b/c lead based paint was banned for residential use in that year.

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target housing

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is exempt from the disclouse, they include houseing for the elderly and vaction housing.

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over 40% of flood insurace purchases are in Florida

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x

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SFHA Special Flood hazzard area

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is an area tha thas a 1% chance of being flooded in any year. termed a "100 year flood"

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Coastal high hazar area

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is an area that has experienced or is predicted to experience desctruction or sever damage from storm surge

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base flood elevation

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means teh water surface elevation associated with teh base flood. First floor must be built above this.

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a buyer may cancel 20 dyas from the date of the contract if the building is built below the minimum base flood elevation and the property is in a special flood or coastal high hazar area

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x

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sinkhole diclosure

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depressin or hole in the land surface cuased by dissoving of the underlying limestone

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Property taxes

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upon the sale of the property, the property must be reassesed to determine the property taxes upon the sale or transer of the property

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Home owners association

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a seller must disclose if membership in a homeowners association is mandatory. if this was not disclosed the buyer can cancel the contract with written notice within three days of recevingthe disclosure summary

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broker-personal interest in the property

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a broker who has personal interest in a proptery, like bing related to a party to the sale.

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FIRPTA- Foreign investment

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affects both federal and state tax laws. all documents must be kept by the broker for five years.

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Buyers duty to withhold

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federal lawy requires that buyer of real property \must withhold and send to the IRS 10% of the gross sale price if the seller is foreign .

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How are disclosures made and on what forms?

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currently Florida has no promlgated disclosue forms that must be sued by real estate professionals. Therefore the diclosures may be made in any or all of these documents:
Seller's real property disclosure statement
sale and purchase contract
addenda to teh sale and purchase contract

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sellers real property disclosure statement (sellers disclosure)

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is a detailed statement that the seller completes and provides to a potential buyer of a residential property, revealing what the seller knows about the conditions of the property.

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Are sellers legally required to complete a disclosure form?

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No , but a buyer may make an offer that is contingent upon the seller completing singing and delivering to the buyer within three days from teh effective date of the contract. the buyer can then cancel if they decide to in three days.

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The FAR (florida association of realtors) sellers real property disclosure statement covers many facts about a residental property that could materially affect its value and desirability such as

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Claims and assessments against the property
Deed or homeowners’ association restrictions
Property-related items (surveys, easements, and encroachments)
Land (settling, soil movement, or sinkhole problems)
Environment (occurrence or remediation of environmental hazards and environmentally sensitive areas such as wetlands, mangroves, or archeological sites)
Zoning (classification, restrictions, violations)
Flooding (flood hazard area, elevation of property, flood insurance)
Termites, dry rot, pests, wood-destroying organisms
Structure-related items (structural damage, building code violations, active permits, etc.)
Roof-related items
Plumbing-related items (drinking water source, septic system, plumbing leaks, or problems)
Pool, hot tub, spa
Major appliances
Electrical system
Heating, air conditioning units
Other equipment (security system, smoke detectors, sprinkler system, garage door openers, humidifier, air filters, fans, etc.)
Other matters that might materially affect the value of the property

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Can you help the seller fill out the Disclourse form?

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No

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FAR residential sale and purchase contract specifies six important disclosures?

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Energy efficiency
radon gas
flood zone
homeowners association
property tax
mold

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addenda forms are what and cover what for disclosures?

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through FAR oare forms that address a number of mandatory and optional disclosures. Covering
Condominium Association Addendum
Homeowners’ Association Addendum
“As Is” with Right to Inspect
Insulation Disclosure (New Homes Only)
Lead-Based Paint Warning Statement
Broker - Personal Interest in Property
Mold Inspection
Property Disclosure Statement Addendum
Sinkhole Disclosure
Foreign Investment in Real Property Tax Act Addendum

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If the seller does not disclose a known material fact, what is that considered?

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Fraud- an act meant to deceive

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type of transfers of property that are exempt from disclosure requirements include:

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From one co-owner to another
From one governmental entity to another
Dissolution of marriage or of legal separation
Foreclosure sale
Property tax sale
Court order
Sale of unclaimed property

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stigmatized property

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property that has been pshychologically impacted by an event which occured or was suspected to have occured on the property such event being one that has no physical impact of any kind.