{"id":3340,"date":"2026-05-24T13:33:41","date_gmt":"2026-05-24T17:33:41","guid":{"rendered":"https:\/\/myhlaw.com\/?p=3340"},"modified":"2026-05-24T15:39:44","modified_gmt":"2026-05-24T19:39:44","slug":"real-estate-transactions-undisclosed-defects","status":"publish","type":"post","link":"https:\/\/myhlaw.com\/es\/real-estate-transactions-undisclosed-defects\/","title":{"rendered":"REAL ESTATE TRANSACTIONS: Undisclosed Defects"},"content":{"rendered":"<h4>We often get these questions from buyers who discover defects in the property they just purchased:<\/h4>\n<ul>\n<li><strong>Is there anything we can do about it? \u00a0<\/strong><\/li>\n<li><strong>What are our options?<\/strong><\/li>\n<li><strong>What if the Sale Contract was \u201cAs-Is\u201d?\u00a0 Are we cooked?<\/strong><\/li>\n<li><strong>What are our chances if we take action against the Seller?<\/strong><\/li>\n<li><strong>And, of course, how expensive is it going to be?<\/strong><\/li>\n<\/ul>\n<p>Some of these questions are pretty simple to answer, others require more explanation.\u00a0 Ultimately, as with all legal questions, the right answer is always \u00abIt depends.\u00bb\u00a0 But, we can do a little better than that preliminarily.<\/p>\n<h2>Florida Law on Misrepresentation<\/h2>\n<p>Let\u2019s start with the easy stuff.\u00a0 If your seller actually said something untrue, or even misleading, then there is definitely something you can do about it.\u00a0 That is simply misrepresentation, which is actionable in any context, and a real estate transaction is no exception.<\/p>\n<p>In any kind of dispute, your polestar will always be this: <strong><em>If my case goes all the way to trial, what do I have to demonstrate in order to win?\u00a0<\/em><\/strong> For misrepresentation cases, the answer is basically this:<\/p>\n<ul>\n<li>Seller made a false statement about a material fact;<\/li>\n<li>Seller had (or should have had) knowledge of the statement being false;<\/li>\n<li>Seller made the false statement on purpose to induce you to buy the place;<\/li>\n<li>You have suffered monetary damages as a result of relying on the false statement.<\/li>\n<\/ul>\n<blockquote><p><strong><em>To put that it simply: the Seller lied to you, you believed the lie, and now you\u2019re stuck dealing with an expensive problem because of it.<\/em><\/strong><\/p><\/blockquote>\n<p>If that is the way it went down, you definitely have a case.\u00a0 And, it doesn\u2019t matter if the contract was \u201cAs-Is.\u201d\u00a0 That is never a \u201cGet Out of Jail Free\u201d card for lying.<\/p>\n<h2>Florida Law on Disclosure<\/h2>\n<p>Okay, so telling a lie is one thing.\u00a0 But, what if the Seller just kept his mouth shut?\u00a0 He didn&#8217;t lie, but he didn&#8217;t bring a problem with the place to your attention.\u00a0 What is the law on that?<\/p>\n<p>Here is the famous quote from the Florida Supreme Court that sets the law in this state:<\/p>\n<blockquote><p>Accordingly, we hold that where the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them to the buyer. This duty is equally applicable to all forms of real property, new and used.<\/p><\/blockquote>\n<p><em>Johnson v. Davis<\/em>, 480 So.2d 625 (Fla. 1985)<\/p>\n<p>Again, to put it simply, the Seller cannot just keep his mouth closed about a <strong><em>known defect<\/em><\/strong> with the property.\u00a0 <span style=\"text-decoration: underline;\">The Seller has a duty to bring the issue to your attention<\/span>.\u00a0 \u00a0 You know what else?\u00a0 So does the realtor . . . but we&#8217;ll get to that later.<\/p>\n<p>And, as with misrepresentation, it doesn&#8217;t matter that you signed an \u00abAs-Is\u00bb contract.\u00a0 If the Seller knows about the problem &#8212; and it&#8217;s a significant problem &#8212; the Seller is required to disclose that to you.<\/p>\n<h2>Available Options<\/h2>\n<p>If either of the above fits your circumstances, then you do indeed have options.\u00a0 What are they?<\/p>\n<p>Generally, you&#8217;re going to start off with a demand letter.\u00a0 That is just the smart, inexpensive thing to do.\u00a0 Have your lawyer put together a well-written letter detailing the relevant facts and explaining the liability the Seller will potentially face if you cannot reach an amicable resolution.<\/p>\n<blockquote><p><strong><em>Basically, you&#8217;re saying: \u00abHere is the situation.\u00a0 Don&#8217;t ignore me.\u00bb<\/em><\/strong><\/p><\/blockquote>\n<p><strong>Spoiler Alert:<\/strong> The Seller will probably ignore you.\u00a0 You know how people are.\u00a0 The Seller&#8217;s first instinct will be to do nothing and see if you just go away.\u00a0 Or, the Seller may hire a lawyer of his own, who will respond with a letter saying: \u00abOh, no, you&#8217;ve got it all wrong.\u00bb\u00a0 That is just how the game goes.<\/p>\n<p>But, you still have to start with the letter because (i) the Seller may surprise you by entering into discussions, (ii) the responsive letter may actually contain some points worth considering, and, if nothing else, (iii) the letter will serve as an exhibit to your complaint, showing the judge that you gave the Seller a good-faith opportunity to avoid litigation\/arbitration.<\/p>\n<p>Beyond that, we will have to look at your Sale Contract.\u00a0 There are almost certainly provisions in there about dispute resolution.\u00a0 For example, you may be required to go to mediation before you can file an actual lawsuit.<\/p>\n<p><strong>Spoiler Alert:<\/strong> If your Seller is in full-on \u00abhead-in-the-sand\u00bb mode, you will have to first initiate a lawsuit in order to force the Seller into mediation.\u00a0 Be ready for that.\u00a0 It&#8217;s very common.<\/p>\n<p>Simply put, there are a couple of things you can do preliminarily, short of initiating litigation or arbitration.\u00a0 If those efforts do not get you an acceptable outcome, then it&#8217;s time for a gut check.<\/p>\n<blockquote><p><strong><em>At that point, you&#8217;re either going to make the investment in suing, or you&#8217;re going to eat it.\u00a0 You&#8217;re just going to walk away and let the Seller get away with it.\u00a0 \u00a0<\/em><\/strong><\/p><\/blockquote>\n<p>Now, it certainly sucks to find yourself having to put out more money for legal expenses, on top of what you have to pay to fix the defects in the property.\u00a0 Unfortunately, short of frontier justice, that is just how it works.\u00a0 What your lawyer can do, though, is help you make a smart decision.<\/p>\n<p>If your case has weaknesses, your lawyer should be honest about it.\u00a0 It&#8217;s really not good for anyone to having you \u00abthrowing good money after bad.\u00bb\u00a0 What if you invest in the lawsuit and then lose?\u00a0 That&#8217;s just salt in the wound.<\/p>\n<blockquote><p><em><strong>Also, what if the legal fees end up being as much as it would cost you to just fix the problem with the property?\u00a0 You know you&#8217;re going to think that somewhere along the way, so let&#8217;s just get it out in the open now.\u00a0\u00a0<\/strong><\/em><\/p><\/blockquote>\n<p>Look, that could very well be the case.\u00a0 I&#8217;m going to give you links where you can get a more detailed analysis about the legal fees, but let&#8217;s just start with the understanding that it&#8217;s not going to be cheap.\u00a0 If the defect(s) in the property are not that significant, then you really want to think twice before you dive into a lawsuit.<\/p>\n<p><strong>Of course, on the other hand _<\/strong><\/p>\n<ol>\n<li><strong>\u00a0Nobody likes to be a punk.\u00a0 The Seller has gotten one over on you, and you may feel some kind of way about that.\u00a0 <\/strong><\/li>\n<li><strong>\u00a0If you do win the case, you will almost certainly recover all the legal fees against the Seller, in addition to the money you spent fixing the problem.\u00a0 <\/strong><\/li>\n<li><strong>\u00a0You could settle along the way.\u00a0 Maybe the Seller just needs to see you file suit in order to take you seriously.\u00a0\u00a0<\/strong><\/li>\n<\/ol>\n<p>So, the story could have a happy ending, but you should go into the fight with an \u00aball or nothing\u00bb mentality.\u00a0 <span style=\"text-decoration: underline;\">The very worst thing you can do is start the litigation\/arbitration and then bail out before the end<\/span>.\u00a0 Do not do that.\u00a0 First, obviously, all you will have accomplished is to be out more money.<\/p>\n<blockquote><p><em><strong>Second, less obviously, the Seller will then ask the judge to award his costs and fees for winning the case.\u00a0 Oops.\u00a0 Now, you&#8217;re trapped.\u00a0<\/strong> <\/em><\/p><\/blockquote>\n<p>So, it&#8217;s all or nothing.\u00a0 Be ready to fund the case all the way to the end, or else just keep your money.\u00a0 Don&#8217;t start a fight you&#8217;re not willing or able to finish.<\/p>\n<h2>Chances of Winning<\/h2>\n<p>This question is very fact specific.\u00a0 The only guidance I can give you is to point out that proving what another person <strong><em>knows<\/em> <\/strong>is not always the easiest thing.\u00a0 \u00a0How do you get inside the person&#8217;s head and demonstrate the Seller actually knew about the problem before closing?\u00a0 It just depends on how obvious the problem is, right?\u00a0 Or, maybe, the Seller had some work done previously so, clearly, he knew there was some kind of issue.\u00a0 And, so on.<\/p>\n<h2>Legal Expenses<\/h2>\n<p>This is a key question.\u00a0 You do need some kind of answer to \u00abHow much will this cost me?\u00bb\u00a0 I&#8217;ve already said \u00abIt&#8217;s all or nothing,\u00bb so you cannot get into the fight without <em>some<\/em> notion of what the whole thing could cost you.<\/p>\n<p>Here is the best answer I have been able to come up with so far:<\/p>\n<p><strong>Article: Costs of Litigation<\/strong><\/p>\n<p><a href=\"https:\/\/myhlaw.com\/business-costs-of-litigation-state-court\/\">https:\/\/myhlaw.com\/business-costs-of-litigation-state-court\/<\/a><\/p>\n<p><strong>Video:\u00a0<\/strong><\/p>\n<p><iframe title=\"Ep. 32 - Litigation: Pleadings Stage \/ Litigio:\u00a0Fase\u00a01\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/dvRntnN1Ceo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>In this article, and these videos, I break down the different stages of a lawsuit and give you my best ballpark estimate of what each stage could cost.\u00a0 Hopefully, you will settle along the way, and the legal expenses will be less than anticipated.\u00a0 But, if not, at least this analysis should give you some idea of the best and worst case scenarios.<\/p>\n<p>~\u00a0<a href=\"https:\/\/myhlaw.com\/attorneys\/jeffrey-harrington-esq\/\">Jeff Harrington, Esq.<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you have gotten an unpleasant surprise after buying a property (i.e. undisclosed defects), then you want to know what you can do about it.  If the property is in Florida, we have answers for you.<\/p>\n","protected":false},"author":1,"featured_media":3343,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[289,290,405],"tags":[179,602,605,611,610,606,603,599,600,598,609,608,601,607,604],"class_list":["post-3340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-disputes","category-real-estate-investment","category-real-estate-transactions","tag-attorney-jeff-harrington","tag-breachofsalecontract","tag-buyerbewar","tag-floridarealestateattorney","tag-floridarealestatelaw","tag-hiddenpropertydamage","tag-homebuyerrights","tag-johnsonvdavis","tag-latent-defects","tag-materialdefects","tag-propertydisputes","tag-realestatelitigation","tag-sellerdisclosure","tag-suingseller","tag-undiscloseddefects"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.1.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"If you have discovered defects after buying a property, then you want to know what you can do about it. 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