Guide
Buying or selling a house with a foundation problem
A foundation problem does not have to stop a sale. It changes what must be said, checked and written down. This is a plain summary of the Florida rules and not legal advice, so speak to a Florida real estate attorney about your own sale.
What a seller has to disclose
Florida's rule comes from a 1985 decision of the Florida Supreme Court, Johnson v. Davis. A seller of a home who knows of facts that materially affect the value of the property, which are not readily observable and are not known to the buyer, has a duty to disclose them. Known foundation movement, an earlier repair or an engineer's report can each be a fact of that kind.
Selling as is does not change this. A Florida Bar Journal article that reviews the appeal court decisions explains that an as-is clause means the seller is not obliged to make repairs. It is not a licence to stay silent about known defects. Real estate licensees have a matching duty under section 475.278 of the Florida Statutes.
If you are buying
- Use the inspection period. If the home inspector flags cracks or sloping floors, bring in a structural engineer before the period runs out.
- Ask the seller in writing about past foundation repairs, sinkhole claims and soil reports.
- For a house that has been repaired, ask for the permit record, the engineer's letter, the drawing showing pier locations and the warranty.
- Find out whether the warranty passes to a new owner and what the company needs from you to transfer it.
- Ask your insurance agent how the house's history affects cover before you are committed.
If you are selling
Sellers generally have two honest routes. One is to repair before listing, with a permit and paperwork a buyer can rely on. The other is to disclose the problem, attach an engineer's report and a repair proposal, and let the price reflect it. Which suits you depends on the house and the market, and your agent and attorney can advise.
What does not work is patching and painting over signs you know about. When you call a repair company about a house that is for sale, say so, and mention the closing date.
Sale questions
Does Florida have a required seller disclosure form?
The duty described here comes from a court decision and not from a form. Many sales use a written disclosure form anyway. Ask your agent or attorney which one goes with your contract.
Does the duty apply to a landlord selling a rental house?
The Johnson v. Davis duty applies to sales of residential property, whoever the seller is. Commercial property is treated differently.
Ready to have the house looked at?
Only someone standing at the house can tell you what is going on under it. Call, explain what you have noticed, and ask for an inspection.
Describe the problem, book an inspection
Say where the cracks or dips are and when you first saw them. The independent local foundation repair company you reach can set a time to look at the house.
Call (407) 598-8829The call may be recorded. See how referrals are paid for and what happens to your details.