Selling AS-IS in Florida Does Not Skip Disclosure: What Sellers Still Have to Tell Buyers

The Most Dangerous Myth in Florida Real Estate

Every week, sellers across Daytona Beach, Port Orange, Ormond Beach, and Palm Coast sign AS-IS contracts believing the words "as is" give them a clean pass on disclosure. They do not. That misunderstanding has cost Florida sellers far more in litigation, rescinded contracts, and damages awards than any repair credit ever would have. If you are preparing to list your Volusia or Flagler County home, understanding exactly what you still must disclose is not optional — it is legally required.

Where the Obligation Comes From: Johnson v. Davis

Florida's seller disclosure duty traces directly to a single landmark ruling. In Johnson v. Davis, 480 So.2d 625 (Fla. 1985), the Florida Supreme Court abolished the old caveat emptor standard and replaced it with a clear affirmative obligation: where a seller knows of facts materially affecting the value of the property that are not readily observable and are not known to the buyer, the seller must disclose those facts. Period. There is no exception written into that holding for AS-IS transactions.

The First District Court of Appeal reinforced this point directly in Rayner v. Wise Realty Co. of Tallahassee, confirming that the Johnson v. Davis disclosure duty applies equally to properties sold "as is." The practical difference between a standard contract and an AS-IS contract is about repairs, not about what the seller has to say. An AS-IS designation tells a buyer that the seller will not be negotiating repair credits after inspections. It says nothing about a seller's right to stay silent on known problems.

Section 475.278, Florida Statutes, extends this obligation to licensed real estate professionals. All licensees must disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. If your agent knows something material, that agent has an independent duty to speak up as well.

For a comprehensive overview of how these disclosure rules operate across the full spectrum of Florida residential transactions, see our complete guide to Florida seller disclosure law under Johnson v. Davis.

What AS-IS Actually Means (and What It Does Not)

Think of the AS-IS contract as a repair negotiation tool, not a liability shield. When a DeLand or New Smyrna Beach seller signs an AS-IS purchase agreement, they are telling the buyer: inspect what you want, but do not come back asking me to fix it. The buyer retains the right to cancel during the inspection period if they discover something they cannot accept. That is a fair and commercially reasonable arrangement.

What an AS-IS contract does not do is give the seller permission to conceal known material defects. A seller in Ormond Beach who knows their roof has leaked for three seasons, who knows there is mold behind the master bathroom wall, or who knows the septic system failed its last inspection cannot stay silent simply because the contract says "as is." Concealment of a known material defect is actionable regardless of the contract's repair language.

What Sellers Must Actually Disclose

Florida law requires disclosure of known facts that are material to value, not readily observable, and not already known to the buyer. Critically, the law does not require sellers to go hunting for problems they do not already know about. The trigger is actual knowledge. Common categories that require disclosure include:

• Roof leaks or documented water intrusion history
• Foundation cracks or structural movement
• Chronic plumbing problems, including past pipe failures or sewage backups
• Known mold or moisture damage, including inside walls or under flooring
• Pest or termite damage and any current infestations
• Electrical deficiencies the seller is aware of
• Prior unpermitted work, especially in pool enclosures, additions, or garage conversions
• Boundary disputes or encroachments the seller has actual knowledge of
• HOA or CDD assessments, pending litigation, or rule changes that could affect value

The list above is not exhaustive. If you know it, it materially affects value, and a buyer would not see it on a walk-through, you should disclose it.

The Brand-New Flood Disclosure: FD-1 Is Now Mandatory

Perhaps the most significant recent change for Volusia County sellers is the flood disclosure requirement created by Section 689.302, Florida Statutes, enacted in 2024 and significantly expanded effective October 1, 2025. Sellers are now required to complete a standardized flood disclosure form, known as the FD-1, at or before the time the sales contract is executed. This is not something to tack on at closing.

The expanded FD-1 requires sellers to disclose three distinct categories of flood-related information: (1) any flooding that damaged the property during the seller's ownership, (2) any flood insurance claims made during the seller's ownership, and (3) whether the seller has received any government assistance related to flood damage. For sellers in flood-prone coastal communities like Daytona Beach Shores, Ponce Inlet, or riverside neighborhoods in Port Orange, this form is especially consequential. Missing or falsifying the FD-1 creates significant legal exposure, including potential contract rescission and damages claims.

The Cost of Getting This Wrong

Florida courts have awarded buyers rescission of the contract, return of purchase funds, and additional damages in cases involving seller concealment. When the concealment is tied to a real estate licensee as well, claims can extend to the brokerage under vicarious liability theories. The cost of a disclosure conversation before listing is always lower than the cost of defending a fraud or concealment claim after closing.

Sellers who work with an attorney-REALTOR® have an added layer of protection. Before the listing agreement is signed, the legal and disclosure framework can be reviewed so that nothing falls through the cracks.

Ready to List? Know Before You Sign

Whether you are selling a beachside condo in Daytona Beach, a ranch home in DeLand, or a waterfront property in Palm Coast, the disclosure rules follow you into every transaction. An AS-IS contract is a smart pricing and negotiation strategy. It is not a substitute for honesty.

Arthur Simpson, Esq., CIPS is an Attorney and REALTOR® with Realty Pros Assured, serving buyers and sellers throughout Volusia and Flagler Counties. When you are ready to list, contact Arthur at arthursimpson.com to schedule a pre-listing consultation that puts your legal obligations and your pricing strategy in alignment from day one.