Sunday, April 20, 2014

Buyer Beware

Florida law does not require that sellers of property provide a property disclosure to a buyer. However, they must disclose material issues that are known to them. To wit; In Johnson vs. Davis, 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.” The disclosure can be made in writing or verbally. 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. 

Buyers are still advised to do their own due diligence and to be suspicious of written and verbal disclosures. Human nature makes sellers forgetful especially where large sums of money are concerned.
“Success in investing is not a function of what you buy. It’s a function of what you pay.”
  ___Howard Marks