There are loads of different animal species in the world and although some are part of the same group, like mammals, they still have differences within their group. This is the same with real estate. Family homes are one subset of the real estate group and condominiums are quite another.
Last week we talked about stigmatized properties and when and if disclosing certain information to a potential buyer is critical. Now we’ll talk about all the other typical elements of selling a condominium property that may require disclosure.
The seller’s property disclosure form outlines and questions many areas of the property. For example, condition and brand of appliances, water heaters, heating and air conditioning systems, anything permanently affixed to doors and windows like mirrors, window hardware, mounted speakers, water softener, pool and hot tub condition and many more. In addition, the seller needs to disclose any ongoing plumbing issues, roof leaks, water intrusion and wood-destroying organisms.
Homeowners’ associations have additional restrictions that must be disclosed, primarily the fees and assessments and if these items are up to date. Potential buyers will be provided with a copy of the current Declaration of Condominium and Articles of Incorporation. Buyers have three business days from the date the documents were delivered to review them and cancel the transaction if necessary.
Whether you sign a property disclosure form or not, the seller is still responsible for disclosing all items contained within the disclosure form. Since condominiums are a complex entity with a board of directors, there are discussions at board meetings that might not become a change for several months. This could involve special assessments, use-of-property rules or leasing regulations for the property.
If one of these is imposed before the effective date of the contract for sale, then of course any change must be disclosed to the buyer. However, if there is a discussion at a board meeting, a mailing, an agenda item, a note in the board meeting minutes, or even a discussion by a board member that involves a future assessment or a future material change, the best course of action is to disclose the possibility. As an additional step, researching the previous 12 months of meeting notes adds another layer of protection for the seller. By being as transparent as possible, the seller eliminates any possibility that a buyer could seek legal recourse against the seller for a post-closing assessment or material change.
While a seller’s property disclosure form is not required under Florida law, Florida does require sellers and their realtors to disclose any significant property defects that may not be easily visible to the buyer. Buyers still have the responsibility to have the property inspected.
Disclosure is a thorny thing to maneuver through when selling since there are no perfect properties. In my opinion, the best thing is always to disclose. That said, as I’ve stated many times in this space, I am not an attorney so if there is a question in your mind about disclosing, an attorney would be your best source of confirmation.
Think of selling a condominium as a subset of the real estate animal world, understand what’s unique about it and how to protect yourself in the wild real estate kingdom.
