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How Much Should You Disclose About Commercial Property Defects?

By
Education & Training with Rowlett Real Estate School

If you sell commercial property, you should exercise caution when you are aware of property defects.

While Chapter 475, F.S. requires disclosure only when selling residential property, you should consider the potential damage to your reputation by failing to disclose major problems that may result in substantial damage to the buyer.

While the best course of action is full disclosure, a seller may allege that you violated a fiduciary duty by making a disclosure that was not required. 

Therefore, before making such decisions, get the informed consent of the seller.  

If the seller refuses to allow the disclosure, you must then decide whether to proceed under those instructions or withdraw from the transaction.  

This is particularly important under CERCLA laws.  

If you don’t disclose problems, you may become liable for all or part of the cleanup cost. 

 

Posted by

Captain Wayne Rowlett GSI
Rowlett Real Estate School

Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Thanks for this valuable information, Captain Wayne.  I think it's always the best idea to be up front and honest.

May 06, 2015 12:09 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   The big issue in Florida for residential is homicide, suicide, death, etc. which are NOT required to be disclosed, by Florida Statutes.

    If you represent the Seller, you could indeed damage them (and violate your fiduciary) by disclosing that one of these events occurred on the property.

May 06, 2015 12:11 PM