May 19th, 2023 1:14 PM by Linda Holley
Important information for home Sellers and Buyers:
1. Florida contract and statute require a Seller to disclose a material defect that affects the value of the property (Johnson vs. Davis). If Seller's agent knows of any material defect that Seller hasn't disclosed, that agent has a duty to disclose. A Realtor's number one duty is honesty by the Realtor Code of Ethics.
2. If Seller fails to disclose a material defect, buyer can sue and recover attorney's fees after closing--unless they are using the As-Is contract. Buyer waives future claims with Florida's As-Is contract.
3. Has the roof been replaced? Were there prior leaks? It's best for Sellers to disclose prior leaks even though there is a new roof so Buyers have the opportunity to have a mold inspection.
4. Structural engineer should always inspect hairline cracks in walls.
5. Realtors should never try to interpret Seller's Property Disclosure.
6. Realtors can waive the $5,000 deductible in their Errors and Omissions insurance if Seller completed a Sellers Property Disclosure. If Seller refuses to complete the Property Disclosure, Realtors need a signed statement saying it was waived.
7. Home Inspections: Buyers read the entire report looking for inspector's "RECOMMEND FURTHER EVALUATION" statement. Put Seller on notice after reviewing the entire report. Don't expect a Realtor to decide what the Seller should/should not repair.
8. Buyer and Buyer's Agent: Allow time to arrange for follow-on inspections...15 days is the contract default and that's best. May need electrical, mold, plumbing, HVAC, roof, or structural engineering inspections. Sellers and their agents like to negotiate short inspection times because they don't want to keep home off the market if the deal falls through. Buyers shouldn't put themselves in a bind to please the Listing Agent and Seller. My last deal had a 7-day inspection period, so I had to get the general inspection and HVAC inspection and Buyers Request for Repairs to Seller in that 7-day period and was headed out of town. Sellers refused to extend the inspection period even after I spent a day in ER with a knee injury. #$%*&!$$!!! Not happy but I got it done even on pain meds.
9. Letting the Seller or Listing Agent take control of the inspection process is like "asking the rat to guard the cheese."
10. Buyers Agent: Use the Mold Inspection Addendum I with the regular FARBAR contract, or Seller may not allow this inspection.
11. Buyers Request for Repairs: Require Seller to confirm receipt.
12. Home inspectors can't inspect a home in which they have a financial interest.
13. Buyers purchasing an older home: Get a roof inspection the same time the general inspection is done--like immediately --or there may not be time during the inspection period for this important follow-on inspection.
14. The contract specifies what a defect is or isn't. Mold is NOT considered to be a defect!
15. If there is limited roof life, Buyer may not be able to get insurance. Use the Insurance Addendum H to the contract when putting in offer so Buyers can terminate the contract if they can't obtain insurance.
16. Cash buyers are protected by using Right to Inspect/Cancel Addendum L and the Insurance Addendum H.
17. Sellers are not required to complete the Sellers Property Disclosure--but they should--or sign a waiver if they haven't lived in the property.
18. Repairs for electrical, HVAC, plumbing, and roof are required to be completed by licensed contractors and receipts provided to the Buyer at closing. When I bought my home, the Seller tried to get away with doing his own electrical work and he wasn't a licensed electrician. Fortunately, I had a good closing attorney who required that a licensed electrician come in and inspect the work. As expected, it wasn't done correctly. LOL for those of you who buy a property For Sale by Owner (FSBO).
See why you need to work with an experienced Realtor? Need me to find an experienced Realtor in your area? I can certainly do that! Call Linda Holley, Realtor, GRI, SRES, Fine Properties, 941-914-4914, for your real estate needs in Sarasota, Venice, and North Port, Florida. Check out my prior blog history: LindaHRealtor.com/blog if you want to know more about real estate.
P.S. My book, Failure to Disclose - A Double-Edged Sword (Linda Holley) is available on Amazon, Books a Million and Barnes & Nobel. Please leave me a review on Amazon if you buy my book. Thank you!
Linda Holley
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