Travels through Property Law by Tom Brodersen, Esq.
As we discussed last month, Caveat Emptor means “let the buyer beware.”
I think I made the point then that buyers are vulnerable to a number of property condition issues that can cause a great deal of pain (and expense) after closing.
Now I want to go into the pain that both the buyer and the seller will go through if something big goes wrong, and they end up tied up for many months (or years) of expensive, painful litigation. It is literally the worst of all worlds.
Florida law requires sellers of residential property to disclose hidden defects (of which they are aware) to buyers, but there is sometimes an issue as to what was disclosed and what wasn’t. There is a form in common use called a Seller’s Property Condition Disclosure that is useful. It is somewhat lengthy and very detailed, but if used properly, it leaves the seller with a good record of exactly what has and has not been disclosed to the buyer. Most sellers won’t know the answer to every question on the form, but if you just don’t know, you can say that. The seller can also indicate if he or she ever resided in the property, and for how long, which bears on how much detailed information the seller can be expected to have about the property.
When it comes to whether or not the seller knew about a defect, it is often difficult to prove that the seller did. Sometimes he or she discussed it with neighbors, or used a service to address it, but it is very hard to discover such evidence.
Some of the kinds of issues which we’ve seen result in prolonged litigation include foundation settlement issues, termite infestation and (worse yet, structural termite damage), and water intrusion / mold issues. Each of these is a whole subject in themselves, but the common goal is to discover these issues before you close.
Property inspection services generally have great checklists, but the ultimate worth of this inspection depends on the knowledge and experience of the individual inspector. All property inspection services include a clause in their contracts limiting their liability to their clients to the amount paid for the inspection, which is insignificant compared to a major loss. I often advise my clients to have a general contractor look at the property in addition to an inspector. The contractor is unlikely to miss structural issues that will cost you big time.
Talk to a real estate lawyer, before you sign any documents. And let him or her protect you.
ANDERSON & BRODERSEN, P.A.,
350 Corey Avenue, St. Pete Beach, FL 33706
(727) 363-6100 • www.PropertyLawGroup.com