Florida disclosures tied to sale contracts
Several Florida laws require specific disclosures at or before the time a buyer signs a sale contract. Missing one can give the buyer a right to cancel, so licensees need to know them.
Property tax disclosure (Fla. Stat. 689.261)
A prospective buyer of residential property must be given a property tax disclosure summary at or before the time the contract for sale is executed (689.261(1)). The summary warns the buyer not to rely on the seller's current property taxes as the amount they will pay after buying, because a change of ownership or improvements can trigger a reassessment and higher taxes. It points the buyer to the county property appraiser with questions.
Unless the disclosure is already in the contract, the seller must provide it, and the contract must refer to it, incorporate it, and prominently tell the buyer not to sign until they have read it (689.261(2)).
Homeowners' association disclosure (Fla. Stat. 720.401)
When a parcel is in a community where buyers must join a homeowners' association, the prospective buyer must be given a disclosure summary before signing the contract (720.401(1)(a)). The developer supplies it on a developer sale; on a resale, the parcel owner does.
If the summary was not provided before signing, the contract is voidable by the buyer. The buyer may cancel by written notice within 3 days after receiving the summary or before closing, whichever comes first (720.401(1)(b)-(c)). This right cannot be waived, and it ends at closing.
Condominium disclosures (Fla. Stat. 718.503)
| Developer sale, 718.503(1) | Resale by a unit owner, 718.503(2) | |
|---|---|---|
| Cancellation window | 15 days after the buyer signs, or after receiving all required documents | 7 days, excluding Saturdays, Sundays and legal holidays, after signing and receiving the required documents |
| Documents | The full set the developer must deliver | At the seller's expense: declaration, articles, bylaws and rules, latest annual financial statement and budget, the FAQ document, and certain other records |
On a resale, the required contract clause says any purported waiver of the voidability right has no effect and that the right ends at closing (718.503(2)(d)2.).
Radon gas notification (Fla. Stat. 404.056(5))
A radon gas notice, in the wording the statute sets out, must appear on at least one document, form, or application signed at or before the time a contract for the sale and purchase of any building is executed, or a rental agreement for any building is signed. It explains that radon is a naturally occurring radioactive gas that can pose health risks, that levels above guidelines have been found in Florida buildings, and that the county health department has more information. Transient rentals of 45 days or less are excluded. The notice is required whether or not anyone has tested the building. (Fla. Stat. 404.056)
The seller's duty to disclose: Johnson v. Davis
In Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), the Florida Supreme Court held that a seller of a home who knows of facts that materially affect its value, that are not readily observable, and that are not known to the buyer, must disclose them. Florida courts have not extended this duty to commercial property. (The Florida Bar Journal)
Licensees have their own, separate duty: under 475.278, a transaction broker, a single agent, and a licensee with no brokerage relationship must each disclose known facts that materially affect the value of residential property and are not readily observable to the buyer. None of these duties covers defects nobody knows about.