Dean and Dean, LLP Blog
March 1, 2020

Dear Clients and Friends,

I am writing this blog in order to help our current and future prospective clients and our friends learn a bit about what we do, how we do it and to share some of the stories and cases our clients bring to us. I have changed the names of the individuals involved and have not disclosed any confidential matters. I hope you find the stories and events I write about interesting and informative.

We settled a case recently that never should have been brought against our client in the first place. The general facts are these: A homeowner listed his house for sale with my client, a realtor, not mentioning that he had made certain improvements and modifications to the house himself, without the benefit of licensed contractors and required permits. The seller also failed to disclose the work he had done on his “Seller’s Disclosure” statement that nearly every realtor requires their seller to fill out, sign and submit. These Seller Disclosure forms are very important because under Florida law, and in the famous case of Johnson v. Davis, the Florida Supreme Court said that every residential seller must disclose all known facts a reasonable buyer would want to know about the house they are buying, and that any action to conceal or hide a known defect or failure to disclose a known defect or issue would be tantamount to fraud or misrepresentation allowing the buyer to sue for damages or for recission of the purchase agreement.

Anyway, back to the case at hand. The house was sold and after the closing, the buyer wanted to make some further modifications to the house. His contractor discovered that prior modifications had been made by the seller without the necessary inspections or permits. The corrective measures required to get the local government inspectors happy included late fees and permit charges and inspections costs totaling in the tens of thousands of dollars for the buyer. Naturally, the buyer was upset that the seller had failed to make the required disclosures and the buyer filed suit against the seller and my client, the realtor, alleging that the seller misrepresented the house to the buyer and that the realtor was either knowingly “in on” the fraud by the seller or that the realtor was negligent in that the realtor should have known that the seller had made the modifications to the home without the necessary permits. How exactly the realtor was supposed to know undisclosed facts, I’m not sure, but the realtor was named as a party and sued, anyway.

Well, after some discovery and the taking of the deposition of the seller, it became clear to everyone what had happened. Soon thereafter, a mediation was scheduled and the parties were able to sit down and discuss a resolution to the case. With the aid of the able mediator, we were able to reach a settlement of all issues in the case and the case was finally over, to the satisfaction of my client, the realtor. What is the take-away from this case? For my client, he used this case as an example to train his agents on what to look for when discussing the listing of a property with his agency. And, to ask questions of the seller regarding any additions or modifications they may have made to the house, so that the seller does not unwittingly miscommunicate or mislead any buyer regarding the condition of the house or any work that has been done on it. For buyers, I suggest they be careful when buying a house and look carefully at a house that has an airconditioned lanai or back porch to make sure that was the original design. If not, check to make sure all permits were obtained and inspections were performed, and the work was done by a license contractor. And, for sellers, be honest and open about the condition of your house. If you know of a defect, either repair it or disclose it and adjust the price accordingly. I have bought some houses with known defects, (roof leaks, foundations cracks, ect.). The price will be adjusted for the diminution in value of the defect or necessary repair. That is only reasonable. But don’t make the mistake of trying to deceive or mask the issue. That will only lead to disappointment, loss of the sale and possible litigation and exposure for damages, costs and attorney fees. It is much better to be upfront about the house’s condition and disclose known defects.

That’s all I have time for on this our eighth blog. I hope you found it interesting and enjoyable reading. Please check back for additional blog messages. And, as always, I want to say thanks to our clients and friends. If any reader has a legal matter or question, please let us know by emailing us or giving us a call. If we can help, we will. If we can’t, perhaps we can refer you to someone who can. If neither, well, it never hurts to say “Hello”.

Yours truly,
Jonathan S. Dean
Dean and Dean, LLP