Perhaps you are a new real estate agent and wondering what type of information you should include in your disclosures to prospective clients. As a real estate agent, you have a fiduciary duty to provide truthful and transparent information about the condition the properties they sell are in. Failure to do so can become a conflict of interest and lead to legal complications for the seller and real estate agent.
Though it may seem more lucrative for you to omit or withhold certain information from potential buyers, you represent the seller. To avoid running afoul of Florida law, consider the following information about real estate agent disclosures.
Essential real estate agent disclosure provisions
Disclosure information is often critical in real estate transactions because they contain information that can significantly impact purchase decisions and the safety and habitability of the properties. You can provide clients with disclosures verbally or on paper, however, it is much harder to prove verbal agreements, even if they are legally binding. Items that are necessary for realtor disclosures in sales transactions include:
- Code enforcement history
- Homeowners Association (HOA) membership or condo rules
- Single-agent or broker relationship transaction status
- Property tax summary
- Legal claims against the property
- Sinkhole, radon gas, mold and insulation history
- Defects with essential parts of the property
Disclosures are extremely helpful to all parties in real estate transactions. Not all buyers are happy or honest about their transactions and may use missing disclosure information as a way to get compensation or rescind their purchase. Protect yourself, business and profits with an iron-clad disclosure.
