Seller's Disclosure is required on all transactions.
The use of a Seller's Disclosure is used to describe the condition of a property. Whether written or oral, the disclosure is required in all residential real property transactions.
The landmark case of Johnson v. Davis (Florida 1985) made it clear that material facts affecting value of residential property which are not readily observable or known to the buyer must be disclosed.
An agent representing the Seller in an effort to find out how much it would cost to repair a few sprinkler heads prior to closing got this response from the sprinkler guy. "Oh they have much more wrong with the water system then just a few sprinkler heads!" And went on to tell the agent much more. The agent spoke with the Seller who said "do not to say anything to the buyer."
The NAR Code of Ethics, Standards of Practice, 1-9 "Information concerning latent material defects is not considered confidential information." The agent told the Seller that he was required to disclose the information to the buyer's agent. It was an awkward moment, but they got through it.
The transaction closed and everyone lived happily ever after, but if it was disclosed in the Seller's Disclosure in the first place....well, now you know why they're required.
By: Kathy Zorn