Legal Question in Real Estate Law in Florida
Structural Defects
Is it FL law that a seller must pay for or deduct the cost from the purchase price to fix a structural defect in a house that we have just inspected?
2 Answers from Attorneys
Re: Structural Defects
I respecfully, and completely, disagree with Peter Gonzalez' advice. I highly recommend you seek local counsel. You should be aware that: An �Action For Non-Disclosure,� is a judicially created cause of action from the seminal case of Johnson v. Davis, 480 So.2d 625 (Fla. 1985). The Supreme Court of Florida, in Johnson stated that �we hold that where the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them to the buyer. This duty is equally applicable to all forms of real property, new and used.� Moreover, �An �as is� clause in a contract for the sale of residential real property does not waive the duty imposed by Johnson v. Davis to disclose hidden defects in the property. E.g., Syvrud v. Today Real Estate, Inc., 858 So.2d 1125, 1130 (Fla. 2nd DCA 2003) citing, Levy v. Creative Constr. Servs. of Broward, Inc., 566 So.2d 347 (Fla. 3d DCA 1990); Rayner v. Wise Realty Co. of Tallahassee, 504 So.2d 1361, 1364 (Fla. 1st DCA 1987). Therefore, I strongly caution you to consult with a local attorney and discuss all the facts. Good luck!!
Randall Gilbert
Re: Structural Defects
It depends on the terms of your contract, but generally if the property is being sold in "as is" condition, and buyer's inspection reveals a structural defect, the seller is under no obligation to repair the defect or give buyer credit at closing. The buyer may attempt to negotiate a credit or have the seller fix the problem before closing, especially since the seller will have the same problem with any other buyer that performs an inspection, but it is up to the seller whether to agree to such a concession. If seller refuses, the buyer can walk away from the deal by providing the buyer notice of cancellation of the contract before the expiration of the due diligence or inspection period (or before the time to provide notice expires), at which time the escrow agent should return the deposits to buyer and the deal dies. Good luck.