Legal Question in Real Estate Law in Florida
sinkhole home in Florida
We purchased the home we were renting,from our landlord,who is an investor. We were told the property was on a sinkhole with approximately,15,000. in sinkhole repairs. The property was appraised at $145,000 and we were given a loan for that amount. The seller paid our closing costs and gave us a check for $5,000. saying that we were even between the closing costs and the cash,to cover the costs of repairs. We planned on refinancing and doing the work at a later date. After the end of the year,when the insurance became due,my agent asked if we could get the engineer report,as this may be a way to save some money{both policies carried sinkhole exclusion clauses} When we got the report the sinkhole was estimated to cost $65,000 for repairs,also there had already been a claim put in and had been paid off. We now are stuck with a home that will never gain any value untill it appreciates $65,0000 or we pay to fix it ourselves. Do we have any recourse? Can we just ''give back'' the home to the mortgage co? We owe more than the home is worth. We would like to keep our home,but as senior citizens it seems impossible. Thank-you for any help you can give us.
3 Answers from Attorneys
Re: sinkhole home in Florida
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Re: sinkhole home in Florida
Florida law requires that sellers disclose all known defects or problems with a home to a prospective purchaser prior to entering into a contract. State and potentially some federal law may require that seller to make additional disclosures especially when that seller has received insurance proceeds. You are going to face additional problems, as may the seller, when your current mortgage company discovers this problem with the sinkhole. I will review your case and determine what recourse you have.
Re: sinkhole home in Florida
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
The case of Johnson v. Davis sets the tone of what a Seller must disclose to a potential Buyer. Under Florida law, a Seller is required to disclose all known facts regarding the property. Partial or a misleading disclosure is probably as culpable as failing to disclose any information at all.
It would not be adviseable to just "give back" your home, especially when their might be a legal remedy against the Seller. I would strongly suggest that you consult with a qualified real estate attorney to review the facts of this case and to determine your rights and obligations.
Scott R. Jay, Esq.
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