What Florida Law Requires: The Johnson v. Davis Standard

Florida's disclosure standard derives from the 1985 Florida Supreme Court case Johnson v. Davis, which established that sellers of residential property must disclose known facts materially affecting the value of the property that are not readily observable and not known to buyers. This creates both an obligation and a limitation: Obligation: sellers must proactively disclose material defects and conditions they know about, even if the buyer doesn't ask. Limitation: sellers can only disclose what they actually know. A seller who genuinely doesn't know about a subsurface sinkhole, prior unpermitted work, or hidden water damage may not be concealing it. They may simply not know. The Florida Residential Sale and Purchase Contract's Seller Disclosure form prompts sellers to address: property condition, material defects, known insurance claims, sinkhole activity, flooding history, and HOA/condominium matters. However, this form is based on the seller's knowledge — it does not replace independent buyer investigation.

Natural Disaster Specific Disclosure Requirements

Sinkhole: sellers must disclose any known sinkhole activity, sinkhole claims filed with their insurer, sinkhole investigations, and any sinkhole repairs made to the property. If sinkhole grouting or repair was performed, sellers must disclose this along with any engineering reports. What is not required: a proactive survey of unknown sinkhole conditions that the seller has no reason to believe exist. Flooding: sellers must disclose if the property has flooded during their ownership. The FEMA flood zone designation is not a disclosure item per se (it is public record) — but prior flooding events that the seller experienced must be disclosed. A CLUE report (Comprehensive Loss Underwriting Exchange) shows insurance claims filed on the property, including flood claims, for the past 7 years. Hurricane damage: sellers must disclose known hurricane damage that has not been fully repaired to pre-loss condition. This includes damage that was repaired but where the seller knows the repair was incomplete or substandard. What sellers are NOT required to disclose: the property's flood zone designation (public record), murder or suicide on the property (Florida statute 689.261 exempts this), and events the seller genuinely did not know about.

What Buyers Must Do Beyond Disclosure

Seller disclosure is the beginning of due diligence, not the end. Florida buyers should independently investigate: 1. CLUE report: request a copy of the CLUE report from the seller. This shows all insurance claims filed on the property for the past 7 years — including water damage, wind damage, flood claims, and sinkhole claims. Gaps (years without coverage) may indicate periods when the property was vacant or uninsured and claims went unfiled. 2. Permit history: search the county's permit portal for the property address. Unpermitted work (additions, garage conversions, electrical) that was disclosed as "permitted" is a red flag. Recent permits for structural repairs may indicate undisclosed damage. 3. 4-point inspection: for older Florida homes, a 4-point inspection (roof, HVAC, electrical, plumbing) provides insurance underwriters with current condition information and buyers with potential issues not visible during a standard inspection. 4. Wind mitigation inspection: a wind mitigation inspection identifies features that affect both hurricane resistance and insurance premium. This is separate from the standard home inspection. 5. Sinkhole survey (Sinkhole Alley counties): as discussed in the sinkholes guide, buyers in high-risk counties should consider a pre-purchase sinkhole survey regardless of what the seller disclosed.

“Florida real estate due diligence requires buyers to go beyond the seller disclosure form. A seller who genuinely doesn't know about a subsurface sinkhole void has technically complied with their disclosure obligation — but a buyer who ordered a sinkhole survey before the offer would have discovered the problem. A seller who forgot to disclose a minor prior roof claim has technically violated the disclosure standard — but a CLUE report would have shown the claim regardless of what the seller said. In Florida specifically, the investigation is more important than the disclosure form. Both matter; the investigation fills the gaps.”

— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®

• FL Disaster Risk Guide (Hub)
• Florida Sinkholes & Real Estate
• Earthquake Risk in Florida
• Hurricane Risk for FL Buyers
• Flood Risk in Florida
• Florida Homestead Exemption
• FL Insurance Crisis Guide

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