Failure to Disclose Latent Defects

Failure to Disclose Latent Defect Lawyer

If a seller fails to disclose latent defects in a real estate transaction, a lawyer can help you in several ways to protect your legal rights and potentially seek remedies. In Florida, as in many other states, sellers have an obligation to disclose known latent defects (hidden problems with the property that are not immediately visible or apparent) that could affect the property's value or safety.

1. Reviewing the Contract and Disclosure Forms

A lawyer can start by reviewing the purchase contract and the seller’s disclosure form (often required in real estate transactions) to see if the seller was legally obligated to disclose the latent defects and whether they failed to do so.

  • Florida Residential Property Disclosure Act: Florida law requires the seller of residential property to disclose any material defects that are known to the seller and not easily discoverable by the buyer. If the seller did not disclose latent defects, the lawyer will assess whether the seller’s conduct violated this law.
  • Contractual Breach: The lawyer will review the terms of the sale agreement to determine whether the seller’s failure to disclose latent defects constitutes a breach of contract. If the seller failed to meet the contract's representations and warranties (e.g., that the property is free of known defects), the buyer may be entitled to a remedy.

2. Investigating the Defects

Your lawyer can help you understand what constitutes a "latent defect." These defects are typically issues that:

  • Are not visible during a standard inspection (e.g., hidden water damage behind walls, electrical problems, or foundation issues),
  • May not be discoverable through normal due diligence (e.g., plumbing issues inside pipes, mold, or termite damage).

A lawyer will work with expert witnesses (such as home inspectors, engineers, or contractors) to determine if the defects existed before the sale and were not disclosed by the seller.

3. Assessing the Seller's Knowledge and Intent

In order to make a successful claim, your lawyer will need to establish that:

  • The seller knew about the latent defect and failed to disclose it.
  • The defect materially affects the value or safety of the property.

If you have reason to believe the seller knowingly concealed the defect (e.g., through false statements, omissions, or deceit), your lawyer can help you pursue a claim for fraud or misrepresentation.

4. Determining Your Legal Remedies

Based on the nature and scope of the defect, a lawyer will explore various legal options for remedy:

A. Rescission (Contract Cancellation)

If the latent defect is significant enough, your lawyer may help you seek rescission of the contract. This would allow you to cancel the sale and get your money back, as if the contract never happened.

  • Fraudulent Concealment: If it can be proven that the seller intentionally withheld information about the defect (i.e., fraud), you might have grounds for rescinding the contract and recovering damages.

B. Damages

In cases where the defect does not justify rescinding the sale, a lawyer may help you pursue damages for the cost of repairs or any reduction in the property's value caused by the defect. This can include:

  • Repair costs: What it will take to fix the defect.
  • Diminution in property value: If the defect significantly lowers the value of the property.

C. Specific Performance

If you’ve already closed on the property, but discover latent defects that the seller failed to disclose, you might be able to pursue specific performance or an adjustment to the purchase price. This means you could ask the court to enforce the sale on terms that reflect the true condition of the property.

D. Breach of Contract or Warranty Claims

If the seller provided any representations or warranties about the property (such as guaranteeing the property was free of known defects), a lawyer can help you bring a breach of contract or breach of warranty claim to seek damages for the seller’s failure to fulfill those terms.

5. Potential Fraud Claims

If the seller intentionally misrepresented or concealed the latent defects to mislead you, your lawyer could assist you in filing a fraud claim. Under Florida law, fraud in a real estate transaction can lead to punitive damages in addition to compensatory damages.

  • Elements of Fraud: Your lawyer will need to prove that:
    1. The seller made a misrepresentation of a material fact.
    2. The seller knew or should have known the information was false.
    3. The buyer relied on the misrepresentation.
    4. The buyer suffered damages as a result of the reliance.

6. Negotiating with the Seller

Sometimes, rather than pursuing formal legal action, a lawyer can help you negotiate with the seller to resolve the issue. This could involve:

  • Requesting that the seller pay for the repair costs.
  • Asking for a price reduction or a credit towards the cost of repairs.
  • Reaching a settlement where the seller agrees to cover some or all of the damages caused by the defect.

7. Filing a Lawsuit

If negotiations fail and you cannot reach a resolution with the seller, your lawyer can help you file a lawsuit for damages, rescission, fraud, or breach of contract. This formal legal process will allow you to pursue the remedies available under Florida law, including:

  • Compensatory damages: For repair costs or property devaluation,
  • Punitive damages: If fraud is proven,
  • Legal fees and costs: In some cases, the court may award you attorney’s fees if the seller acted in bad faith.

8. Statute of Limitations

Keep in mind that Florida has time limits (the statute of limitations) for bringing legal claims:

  • Fraud claims: The statute of limitations for fraud in Florida is generally 4 years from the date the fraud was discovered or should have been discovered.
  • Breach of contract claims: Typically, the statute of limitations is 5 years for breach of contract claims in Florida.

If you believe the seller failed to disclose latent defects, it's important to take action promptly to avoid the statute of limitations expiring.


Conclusion

If a seller failed to disclose latent defects, a lawyer can help you by:

  • Assessing the contract and legal disclosures,
  • Gathering evidence and working with experts,
  • Exploring your legal remedies (rescission, damages, etc.),
  • Negotiating with the seller, or
  • Filing a lawsuit if necessary.

A lawyer specializing in real estate law will be able to guide you through the legal process, protect your rights, and help you secure a fair remedy if the seller has failed to disclose important information about the property.

If you would like further help with a specific case or have any questions about the process, feel free to ask!