Selling/Listing

Is A Seller’s Disclosure Required?

Based on what we hear on Florida Realtors Legal Hotline, most residential sellers are content to complete the Florida Realtors Seller’s Property Disclosure – Residential form (SPDR) around the same time they enter into a listing agreement. However, every now and then, a seller will balk at the idea of completing this form, prompting a member to ask what Florida law requires regarding disclosures.

Although sellers aren’t required to complete this specific SPDR form, a residential seller does have to comply with the rule established in Johnson v. Davis. In that case, the Florida Supreme Court held that “where the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them to the buyer.” These material facts are sometimes referred to as latent defects.

In addition, in Rayner vs. Wise Realty Co. of Tallahassee, the First District Court of Appeal provided that this same disclosure requirement applies to residential properties that are being sold as is.

Sellers can make this disclosure in writing or verbally, although Florida Realtors attorneys recommend that it be made in writing.

Realtors should note that the SPDR contains safeguards to ensure the seller completes the form – not the associate or broker. As a reminder to all parties, the first line of the SPDR provides “Notice to Licensee and Seller: Only the Seller should fill out this form.”

As a separate but related issue, some brokerage companies may require that certain documents (like a seller’s property disclosure) be maintained in a file, so associates should always ensure they understand and comply with any specific requirements their company may have.

Original Source

I am one of the Managing Brokers for United Realty Group, Inc. I have been servicing the residential real estate market since January 2007 and have formed a real passion for the industry. With high standards and a strong moral compass, I am pleased to serve our industry and URG's REALTORS on a daily basis.

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