Florida Seller Disclosure Law: What You Must Reveal Under Johnson v. Davis

The Case That Changed Everything for Florida Home Sellers

If you are preparing to sell a home in Ormond Beach, Port Orange, Daytona Beach, New Smyrna Beach, Palm Coast, or DeLand, there is one Florida Supreme Court decision you need to understand before you ever accept an offer: Johnson v. Davis, 480 So. 2d 625 (Fla. 1985). That single ruling established an affirmative duty that follows every Florida seller into every transaction, including so-called "as-is" sales. Ignoring it can expose you to fraud claims, rescission of the contract, and significant monetary damages.

What Johnson v. Davis Actually Requires

The Florida Supreme Court held in Johnson v. Davis 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." The Court did not make disclosure optional. It did not limit the duty to items a buyer specifically asks about. It created a three-part test that applies automatically:

• A fact exists that materially affects the value of the property.
• The seller knows about that fact.
• The buyer does not know about it and cannot readily observe it during a normal inspection.

All three elements together trigger the duty. If you know about a problem that a buyer walking through your home on a sunny Saturday afternoon would never detect, you are legally obligated to disclose it.

"As-Is" Does Not Erase Your Duty

One of the most persistent misconceptions in Florida real estate is that selling a property "as is" eliminates the seller's disclosure obligations. It does not. Florida courts have been explicit on this point. The "as-is" designation tells a buyer that the seller will not negotiate repairs after an inspection. It does not give the seller permission to conceal known defects. If you patch a crack in your Ormond Beach foundation, know that moisture intrusion returns after heavy rain, and say nothing because the sale is "as is," you remain squarely within the reach of Johnson v. Davis.

What Counts as a Material Defect

Florida law does not provide a fixed statutory list of every condition that must be disclosed. Instead, materiality is evaluated case by case based on whether the defect would likely affect the value of the property or a buyer's willingness to purchase it. Health and safety considerations are also part of the analysis. Common examples that consistently rise to the level of required disclosure include:

• Roof leaks, including leaks that only appear during heavy summer storms common to Volusia County.
• Foundation cracks or settling, whether repaired or ongoing.
• Mold or prior mold remediation.
• Plumbing defects, including slow drains, pipe corrosion, or prior sewage backups.
• Unpermitted additions or improvements, which are particularly relevant in Daytona Beach and Port Orange neighborhoods where older homes have been expanded over the decades without proper permits.
• A history of standing water, flooding, or poor drainage, including localized yard flooding that occurs after typical Florida afternoon downpours.
• Prior insurance claims, especially wind or water damage claims following tropical weather events.
• Chinese drywall, if present, which remains an active concern in some Florida properties built or renovated during the mid-2000s construction boom.

Critically, the duty covers past and present conditions, completed repairs, and repairs that have not yet been made. Fixing a problem does not mean you can stay silent about it.

Statutory Obligations That Layer on Top of Johnson v. Davis

The case-law duty is not the only obligation sellers face. The Florida Legislature has enacted several statutes that expand specific disclosure requirements. Section 475.278, Florida Statutes, extends the disclosure duty directly to real estate licensees, requiring all licensees to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. This means your listing agent carries an independent obligation alongside yours.

Additional statutory disclosures apply in particular circumstances. Florida law requires specific disclosures related to homeowners association membership and fees, radon gas (Section 404.056, Florida Statutes), lead-based paint in pre-1978 construction under federal law, and sinkholes or sinkhole activity. Sellers in Palm Coast, DeLand, and inland Volusia County communities should pay particular attention to sinkhole disclosure requirements given the karst geology common throughout Central Florida.

How to Protect Yourself as a Seller

The best protection is straightforward: disclose what you know, in writing, before the contract is executed. A thorough Seller's Property Disclosure Statement completed honestly and completely creates a documented record that you acted in good faith. Trying to time disclosures after a buyer is emotionally committed to a purchase does not insulate you legally and may actually worsen your exposure.

Work with qualified professionals before you list. A pre-listing inspection can surface issues you may not even be aware of, giving you the opportunity to repair them, price the property accordingly, or disclose them clearly from day one. Sellers in Ormond Beach and the surrounding Volusia County market who price with full transparency and complete disclosures in hand consistently experience smoother closings and fewer post-contract disputes than those who attempt to minimize what they share.

The Bottom Line for Florida Sellers

Florida disclosure law under Johnson v. Davis is not complicated in its intent: tell buyers what you know, particularly what they cannot see for themselves. The obligation is affirmative, it applies in "as-is" transactions, and it extends to your licensee. Failing to meet that standard creates real legal and financial risk, regardless of how well your property is priced or how strong your buyer's offer looks on paper.

Before you list your Daytona Beach, Ormond Beach, Port Orange, New Smyrna Beach, Palm Coast, or DeLand property, consult a professional who understands both the legal and market dimensions of this requirement. As an attorney and REALTOR® serving Volusia County and the surrounding region, I work with sellers to navigate disclosure obligations clearly and confidently, so that closings happen on schedule and stay closed. Visit arthursimpson.com to schedule a consultation or to learn more about how legal insight can protect your sale from start to finish.