A property disclosure is the act of making information known that was not previously known or that is not otherwise discoverable by the recipient of the disclosed information.  A disclosure form is a legal document through which the seller of a property discloses to the buyer certain information about the condition of the real estate. 

The justification behind requiring property disclosure is to ease the burden on a purchaser of real property, as existed previously when the general attitude towards real estate transactions was "caveat emptor," Latin for "let the buyer beware."  Today, in most jurisdictions, it has been reflected in the law that it is unfair to require the buyer of a parcel of real property to be responsible for discovering all defects, including those that are difficult to find, when the seller of the property in question has the information available already.

Most states that have disclosure laws require the seller of a property to disclose "known facts" about the property.  The seller is not obligated to disclose everything; the seller has no duty to specially search for conditions of which he or she is unaware for the sole purpose of gathering information to disclose to the property buyer.  A list of disclosures does not guarantee that a property is free of all defects; it only reveals the issues of which the seller of the property making the disclosure is aware.

In Florida, disclosure statements are designed to reflect the actual knowledge of a seller of property as to the conditions of the property offered for sale at the time the disclosure form is filled out by him or her.  Seller´s disclosures with respect to title to the property are formulated as follows:

·          Does the seller have the legal authority to sell the property?

·          Is title to the property subject to any of the following?  (If so, an explanation is required.)

o       First right of refusal-the contractual right of a potential purchaser of a parcel of real estate to meet the terms of a higher offer by a third party

o       Option-the contractual agreement between a buyer and seller of real property that allows the buyer to buy the property within a specified time at a specific price; for the duration of the option the seller is prohibited from selling the property to another purchaser

o       Lease or rental agreement-the contractual obligation of a property owner to convey the right to use and occupy the property to a third party, in exchange for consideration such as rent

o       Life estate-legal ownership of a property limited in duration to the length of the possessor´s life

·          Is the property subject to any encroachments, boundary disputes, or boundary agreements?

·          Do any written agreements exist regarding joint maintenance for an easement or right-of-way?

·          Does any study or survey exist that could adversely affect the property?

·          Are there any existing or pending assessments against the property?

·          Are there any zoning violations, non-conforming uses, or unusual restrictions on the property that could limit or prevent future construction or remodeling?

·          Is there an existing survey on the boundaries of the property?  If so, it must be attached to the disclosure form.

·          Are there fences on the property?

·          Is any vegetation on the property diseased or damaged?

·          Is the property affected by any covenants, conditions, or restrictions?

·          Is access to the property via a private or public road?

Other required disclosures relate to the following issues:

·          Information regarding the source and quality of household water

·          Information regarding irrigation, water rights, and sprinkler systems

·          Information regarding the type of sewer or septic system associated with the property, the capacity of the system, and changes, repairs, and inspections pertaining to the system

·          Information regarding the structural aspects of a property, including the roof, foundation, walls, and termite and other pest control, as well as homeowners´ insurance claims filed and the age of the property

·          Information regarding a property´s electrical, mechanical, plumbing, cooling, heating, and security systems and fixtures

·          Information regarding appliances

·          Information regarding a community Homeowners´ Association, if applicable

·          Other general disclosures

A buyer must sign a seller´s property disclosure prior to closing in order to acknowledge that he or she accepts the disclosures as true and waives the right to hold the seller liable for the conditions disclosed in the document.

Note:Contact an attorney on all legal questions or legal issues. A real estate agent is not qualified to give legal advice or tax advice and is not licensed to give legal advice or tax advice.
 GBrey