This week, I have had two separate instances that involved “Failure to Disclose” issues that surfaced after a closing took place, so it’s the perfect topic today to educate anyone buying a home in Tampa, selling a home in Tampa or anyone contemplating a home purchase in the State of Florida.
The Florida Real Estate contract requires the seller to “disclose any facts which materially affect the property”. There is a lengthy form regarding all issues related to the property that a seller “fills out”, when a home is listed, known as the “Seller’s Disclosure”. Since the contract states that the seller warrants that everything about the property is in “working condition”, filling out the “seller’s disclosure” 
properly is a critical issue. It also requires all utilities to be on for the home inspection. Many sellers live with things their home that don’t really work anymore, or they haven’t used them since they owned the property. For instance, a home may have a fireplace that hasn’t been used by the current owner. Or, there may be a security system that has never been used. All of these things should be disclosed on the “Seller's Disclosure”, along with the Mold addendum A savvy listing agent will review the Seller’s answers on the disclosure, to ensure the questions have been answered properly. The seller can say “I have never used the fireplace and it is not a warranted item.”, or “Two zones in the sprinkler system are not currently operating”. Simple. Full disclosure.
Too often, seller’s either “forget” about a non-working item, or they hope that the issue may not be discovered by a home inspector, or their listing agent does not “quiz” them thoroughly about any non-working items. Bad Idea.
The two issues I encountered recently are worth discussing because they are VERY different examples of a seller’s “Failure to Disclose”.
Case #1: A spa heater was found to be “non-functioning” during a home inspection. The spa was apparently“gas heated”. The seller’s disclosure indicated there were no issues with the pool, or spa. It also indicated that the sellers had occupied the home. They had purchased it 3 years prior, but it was now vacant. Repair of the spa heater was listed on the items which needed repair, along with a number of other items. The listing agent sent an email stating that all repairs had been completed. The Contractor who made the repairs provided an invoice which stated the “breaker needed to be on for the spa heater to operate and the spa blower is operating normally.” A VA appraiser had checked the repairs and there was also a written invoice of verification of repairs. The repairs were “triple-checked”.
Once the buyers moved into the home, it was discovered: 1: the spa heater was still not working, 2: there was NO GAS TANK (it had been removed after the previous owners cancelled their service) 3: without gas at the time of the home inspection, the spa heater could NEVER have been tested, nor could it be operable. The Seller’s failed to disclose 1. there was no gas service for the spa 2. there were any issues with the spa AND they are guilty of Breach of Contract by failing to provide gas for the home inspection. None of these things were readily observable to the buyers, or the home inspector, but they were all facts which materially affect the property. The home had a general home inspection, radon inspection and mold inspection! Buyers are expecting to be reimbursed by the Seller for the spa heater repair and the installation of a new underground tank. All of this could have been avoided if the Seller had simply stated the lack of a gas tank and the unknown condition of the spa, since they had apparently “never used it” and stated that is was not a warranted item. Oh, these sellers also failed to disclose they had a “mitigation fan” due to the presence of radon. The radon inspector is the one who alerted us to THAT little tidbit, when the radon levels were slightly elevated, and the radon company had a record of a previous installation of a fan at that address. I always recommend a radon inspection in the Eastern part of the county, due to phosphate in the soil, but over 80% of homes in the area go uninspected. Why?
Case #2: First time homebuyers purchase a home without representation, through the listing agent. The home had apparently had an addition done without permits. The buyers never received, nor did they sign, a seller’s disclosure. They have now incurred substantial costs related to obtaining the proper permits, since the latest version of the Florida contract requires seller verification that all work was done with permits, and they have passed the final inspection. I was contacted by them through the Real Estate Sizzle, to get some advice, so I referred them to a Real Estate Attorney.
Selling a Home in Tampa? When in doubt…OVERDISCLOSE! Buying a Home in Tampa? Read the Seller’s Disclosure thoroughly and get written verification of any, and all, repairs. And, never buy a home in Tampa without the help of an EXPERIENCED agent who can properly advise YOU through every step of the homebuying process. Need help with your Real Estate needs in Tampa? Contact me today!
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