Does Florida Have a Buyer Beware Law?

November 18, 2024

No one wants to fall victim to unlawful practices, especially in transactions involving years' worth of financial savings. There are many ways a state can protect buyers while also encouraging them to do due diligence before blindly accepting the seller's offer. When we talk about 'buyer beware', we refer to one common practice to spot unfair practices before they directly affect the buyer's property and investment.

Buyer Beware: What Is the Doctrine of Caveat Emptor

The doctrine of caveat emptor makes buyers responsible for doing due diligence, specifically urging them to inspect the land or building they're meant to purchase firsthand, before the execution of the purchase contract.

It places a legal obligation on buyers, so they can be held responsible for any flaws on the property, as well as any unfair practices that go unnoticed because of the buyer's failure to investigate the matter. In other words, if the buyer sidesteps or neglects the review stage leading up to the closing (home appraisal, title searches, etc.), they risk legal repercussions, even when the seller has engaged in fraudulent practices.

As described by The Mavric Law Firm, there are only three exceptions where this doctrine is not enforced:

1. Some external factor has been employed to prevent the buyer from making an independent inquiry.
2. The buyer does not have an equal opportunity to become informed of the fact.
3. The seller fails to disclose the whole truth after accepting the responsibility to disclose all they know about the asset. If a seller provides inaccurate/false information in response to a direct question from the buyer, the buyer won't risk the doctrine of caveat emptor.

Florida currently remains a caveat emptor state, as shown by multiple court process in which the buyer's demands have been rejected on grounds of this law.

How To Prevent the Legal Consequences of Buyer Beware Law

By the definition, the doctrine of caveat emptor encourages buyers to exercise due diligence, but what exactly does that entail? Here are some ways to cover your bases before a real estate closing:

• Evaluate your purchase contract with an eagle eye: In some cases, the exceptions to the buyer beware law don't apply because of the language in the contract.


• Don't postpone the home appraisal and follow-up inspections: Structural issues like leaks, mold infestations, and rotted foundations are the start of many lawsuits. The problem is that you might lose the chance of getting compensated if there's proof that you grew lax during the property inspections. This could also keep you from using the third exception to the doctrine of caveat emptor: buyers can still bear the blame for accepting the seller's statements without double-checking during the appraisal.
  
  Ideally, a real estate contract should allow a initial appraisal and follow-up inspections if there are things in need of repair. Ask for a revision, if your contract demands that you accept the property "as is", and if the terms already allow you to inspect the property, make the best of this clause.


• Compare pricess: This is a no brainer when you're browsing sales listings, but it's still important after the initial negotiations, and later during the home appraisal. Do you feel like the property price reflects it's market value? If not, define the factors that make you think you're dealing with a case of false advertisement.


• Don't hesitate to ask questions: If you see any strange details during your property inspection, don't be afraid to address it directly with the seller. Something as small as peeling paint on the walls may say something about the property's age and sturdiness. Likewise, noise from the buildings nearby might reveal something important about the community around it. Even if you think that something you noticed isn't relevant enough to address, but think about how it may affect your everyday life after you settle in your new home.

Our Escrow Specialists Are Ready To Help!

Secure the best assistance during your real estate transaction so you don't become exposed to liability during a potential legal process. Key Title & Escrow provides all the services to help you research the property before the closing date.

Using the most advanced resources and our experience in the industry, we ensure that all relevant details are brought to light before you buy the property so you don't have to worry about unpleasant surprises after the title transfer.

We help you evaluate the contract terms to ensure that your rights are still protected by the exceptions to the buyer beware law. And our specialists will gladly tell you what to look for during the inspection so you can make an informed decision. You can also count on us for the completion of ther escrow requirements, like title searches, lender's insurance, and more. Our staff will follow all the terms of the contract so everything's in order before the closing.

Contact Key Title & Escrow if you want to ensure a correct, lawful process, or if you simply want to learn more about buyer beware law. Our specialists are always up to date with all the changes in the regulation of real estate transactions statewide, so there's no better option for those looking for assistance in Florida. Feel free to call (305) 235-4571 or toll-free at (800) 547-0006 to get more information. You can also use the contact form on this page and we'll gladly answer all your questions. Save yourself the stress of a shady transaction and seek the assistance of Key Title & Escrow.