Friday, June 26, 2015

Investors and Disclosures...No different than owner occupant sellers.

When it comes to selling a house in Florida, whether owner occupant or investor, the rules about disclosure are the same.

I saw an MLS entry today where the listing agent said "no sellers disclosure available due to the fact the seller never lived there."  

In Florida those selling homes are required to disclose any issues that materially affects the value of a property and is not obvious.

I believe this is very often hogwash! 

It is hard for me to believe that the seller does not have maintenance records on an investment property.  It is hard for me to believe that the tenant, if there was one, did not complain about issues.  If the owner replaced the roof or any other major system in the past I bet they know.  If the seller is an investor who purchased a foreclosure with water damage, they know its previous condition and how it was remedied.

Sellers in Florida must disclose anything that effects the value of a property/ material defects such as leaky roof, termites, environmental hazards, non-permitted improvements, restrictions placed on property uses, association rules, previous water damage. This is not a comprehensive list.

Sticking ones head in the sand is not an effective way avoid disclosure, when appropriate.  If it is a defect, it is a defect that should be disclosed. 

If in doubt, disclose.  Or consult a real estate attorney as I am not a lawyer.

Related reading:
Is there such a thing as being too truthful?
Home Inspections and Property Disclosures
Home Buyers - Perform Your Own Homework as well
Pre-Listing Inspections May Prevent Post-Contract Blues

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