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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Home Buyer Tips: "Looks like it will fly right through the inspection, right?"

While showing homes this morning a buyer made the comment "Looks like this one will fly right through an inspection, right?"

My response was a simple...you never know for sure.

Sure this flip looked as if all had been done.  But have all the permits been pulled and cleared?  What about the quality of the work?  Has something been "covered up" with paint?  What about the electrical panel and wiring?  And the major systems like the AC or roof?

There are a lot of potential issues when it comes to a structure.  I have seen older homes fly right through the inspection.  I have witnessed a few newer homes have issues.

So will it fly right through an inspection?

That question will need to be answered by one who is qualified to answer it.

As a real estate broker I know my boundaries.  I am not much good either when the question concerns taxes or legal issues as I am not an attorney or CPA.

RELATED READING ABOUT PROPERTY INSPECTIONS.

Home Inspections - Boring But Informative.
Who Should Attend the Home Inspection?
Do not buy a house without having an inspection performed.
The Home Inspection Report.
You have the Home Inspection Report.  Now what do you do with it?
If its a defect, its a defect!

If you are considering buying a home in Viera or Melbourne, Florida, I can help.  If you are relocating to Florida, I am available to answer your questions.   Need a Florida real estate agent in another area of state?  I can help as well.

Just send me an email.

Why review a seller disclosure before making an offer?

Performing due diligence is a home buyer's responsibility and a major part of the process relies on information the seller provides prospective buyers.

A key piece of that information is included in the Seller's Real Property Disclosure Statement provided by most Florida licensed real estate agents.  Other information provided includes things like association disclosures,  rules/restrictions, and financial statements of the association.

When I work with buyers the disclosure is requested and reviewed prior to any purchase offer is submitted. 

Although the form is about five pages long it is not a complex task to complete.  These disclosures are prepared by the seller(s) and their real estate agent should not get involved in the completion of the form in any way.  As I always tell sellers - include everything yo know that you would like to know if you were the buyer.  Do not stick your head in the sand....disclose, disclose, disclose.

This form is a simple questionnaire about the subject property.  What are some of the items discussed?

• any claims and assessments 
• deed/Homeowner's Association restrictions?
• property items like surveys conducted, boundary disputes, fences, drainage problems, sinkholes, soil movement, flood zone, etc.
•  potential environmental and zoning issues such as hazards and  any proposed changes that may affect future value, etc.
• termite and wood destroying organism issues (current or past), 
• structural and major systems issues including roof related items, plumbing, electrical, heating and air conditioning,
• any other matters that may affect the value of the property.

This list covers a lot of areas and is not all inclusive.  With disclosures as background information, buyers should go further including the home inspection, termite inspection, document review and more.

The time allowed for performing due diligence is identified in the contract.  Buyers need to move forward as quickly as possible.  Deadlines identified in the contract are firm unless modified by buyer and seller.

Selling Your Florida Home - What are you required to disclose to potential buyers?

Selling Your Florida Home - What are you required to disclose to potential buyers?

In Florida most sellers using a real estate agent provide buyers with a written seller property disclosure.  Although the form is not required by law it does provide a basic set of answers to general questions a buyer should have about a property.

Questions on the seller property disclosure form include things like...

• any existing or pending legal actions, claims, special assessments, etc.  
• any homeowner restrictions,
• environmental issues like any lead paint or Chinese drywall, etc.
• general topics such as water source, sewer or septic systems, equipment related questions, etc.

Florida law does require sellers and their agents to disclose to potential buyers of residential property all facts known to the seller which materially affect the value of the property, which are not readily observable and which are not known by the buyer.

The last question on this form is the one I consider the most important...

"Is there anything else that materially affects the value of the property? NO  YES    If yes, explain:......"

When I provide the questionnaire to sellers my instructions are simple - answer all questions that are asked.

While buyers have a responsibility to perform due diligence a seller can't just put heir head in the sand and assume something does not exist if it should be disclosed.

Regarding the last question....

1. If you think something should be disclosed then disclose it as well.
2. If you were the buyer and would like to know this, disclose it as well.

If you are considering selling your Viera, Suntree or Rockledge Florida home, please give me a call if I can answer any of your questions or assist in any way.

Want a free market analysis?  Just email me.