5 Things You Should Remember About Disclosures in Florida
Real estate is an incredibly location-centric industry — that comes as no surprise. For agents and brokers to be the real “neighborhood expert” for their clients, they must stay up-to-date on all types of geographically-based information. From local school district boundaries to understanding the nuances of state-required documentation, there’s a lot to stay abreast of.
If you’re working in Florida’s real estate business, one thing you need to know is the state’s specific disclosure policy. Here are 4 things that agents should keep in mind while navigating a deal in Florida:
Understanding the Law
First off, all real estate professionals practicing in the state of Florida need to know the laws linked to their business.
According to the FL State Law, sellers must disclose any known material facts regarding the property. This means anything that may impact the property’s purchasing price or alter the home’s power to attract interested buyers. The law mandates that any flaws and/or conditions that aren’t easy to detect by the naked eye need to be officially disclosed to the buying party if known to the homeseller.
The Florida Association of Realtors®’ Example
In order to help their members and agents, the Florida Association of Realtors® provides a basic guideline for the state’s property disclosures. The guideline includes a standard set of topics to disclose, making up Florida’s standard disclosure form.
Details of any boundary disputes, legal claims and/or court proceedings, infestation or pest-related damages, and structural/systemic issues that affect the property are all apart of this basic guide.
Some popular Florida-related disclosure elements are sinkholes and environmental hazards - so don’t forget to mention those to your clients.
To Form or Not to Form
Another interesting fact about disclosures in Florida is that agents and their clients are not mandated to use the official Florida Association of Realtors® forms when completing a purchase or sale contract — this includes disclosure forms.
Of course, the FAR forms are far more comprehensive and, therefore, are less likely to result in legal action. They cover lots of the ins and outs of the subject property provide a much more comprehensive overview of the property than disclosures completed without using forms.
What Doesn’t Need to Be Disclosed?
Your clients should always know that they’re not required to disclose everything. Specifically, Florida sellers — unlike those in other states — don’t need to disclose if any murders or suicides have occurred on the property or if someone infected with HIV or AIDS lived in the home unless the buyer specifically asks about these topics.
What About Flood Zones?
Even if you don’t live near the beach, there is a reasonable chance your property could be in a flood zone. Florida has more than 30,000 lakes, most of which sit at very low elevation – the state’s average elevation is only 6 feet above sea level. Luckily, much of Florida is covered by sandy, well-draining soil, enabling runoff from summer thunderstorms to seep back into the earth pretty efficiently. However, the state does contain Special Flood Hazard Areas, which are mandatory to disclose. These flood zones can be found by entering the property’s address into a search function on the FEMA website. Florida disclosures also ask whether or not your lender requires flood insurance, and if you have an elevation certificate. Property elevation certificates can be requested from your county or municipality government office.
Remember these 5 tips on Florida’s disclosure policy as you flow through your transactions.
Interested in learning how Glide is mitigating the legal risks and streamlining the disclosure process for both you and your clients? Visit our website!
