Disclosing Material Facts — Team Renick Single Agent

Of all nine Single Agent duties, this is the one most buyers have actually heard of — and the one Florida courts have litigated most aggressively. Under the landmark Johnson v. Davis decision (1985) and the Florida Real Estate Commission’s interpretation of Chapter 475, every real estate licensee in Florida owes the duty of disclosing material facts to a buyer, regardless of whether the licensee is a Single Agent, a transaction broker, or even (with limits) a non-represented party to the deal. The Single Agent context adds depth and rigor to a duty that is already the universal floor. Here is exactly what the duty requires and how it shows up when we represent you.

What “Disclosing All Known Material Facts” Means Under Florida Law

Under F.S. 475.278(3)(i), a Single Agent owes the duty to “disclose all known facts that materially affect the value of the residential real property and are not readily observable to the buyer.” This duty also exists for transaction brokers under F.S. 475.278(2)(d) with nearly identical wording. And under Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), Florida common law extends the duty to all sellers and their agents in residential real estate transactions.

The Florida Real Estate Commission interprets the duty to cover four categories:

• Defects in the property itself. Roof problems, foundation issues, plumbing failures, electrical hazards, water intrusion, mold, structural concerns, undisclosed renovations done without permits, prior code violations.
• Environmental and external factors. Flood zone designation, sinkhole history, prior insurance claims (especially wind, water, and roof), Chinese drywall, polybutylene plumbing, prior pest infestations, lead paint (in pre-1978 homes), and any environmental contamination.
• Legal and regulatory facts. Pending litigation involving the property, easements not on the title commitment, zoning issues, code enforcement actions, HOA assessment liens, milestone-inspection failures under F.S. 553.899, and condo reserve study findings.
• Market context. Listing history that affects value perception — multiple price reductions, prior failed contracts, properties that have been pulled and relisted, and seller-side circumstances that bear on the property’s marketability.

The “not readily observable” qualifier matters. A buyer should reasonably notice obvious cosmetic issues (peeling paint, dated finishes, visible cracks). The duty kicks in for facts the buyer would NOT reasonably catch — the prior wind claim that doesn’t show on a property tour, the underfunded HOA reserves that don’t appear in the listing, the flood remap that happened after the listing went live.

“It was great working with Mike Renick & Eric Teoh during the recent purchase of our Sea Place Condo. Always professional, friendly and patient, Eric answered our many questions and helped quickly resolve various issues as they arose. Of the many professionals we dealt with during the past two months, Eric was the most helpful when it came to resolving computer problems & e signing of documents, as the purchase was done virtually from New Jersey. We can’t thank Mike & Eric enough for all their help & are happy to give them our highest recommendation.”

– Herma Perez, Google Review

Why This Duty Is the Foundation of Every Other Single Agent Duty

Honest dealing, full disclosure, loyalty, and the rest of the Single Agent duties all assume that material facts are reaching the buyer. If material facts are being withheld, every other duty collapses. That is why Florida courts have been so aggressive about enforcing the duty under Johnson v. Davis — they recognize that a single material-fact breach can poison an entire transaction.

I have watched buyers close on Gulf Coast properties only to discover, within weeks, facts the listing side knew about and chose not to disclose: a wind claim from two storms ago that drove the insurance premium up 60%, a milestone inspection that had failed and was being quietly remediated, an HOA special assessment that had been verbally discussed but not yet officially noticed. Each one was a material-fact breach actionable under Florida law — but only the buyers who knew their rights and documented carefully ended up with recourse.

How Disclosing All Known Material Facts Shows Up in Our Process

The duty is wide. The application is rigorous:

“We are in the very early stages of purchasing a condo. I contacted Mike based on the reviews I found online. I have one word to describe his approach…unbelievable! Even though he understands we are a couple of years away, Mike spent a lot of time with me on the phone. He explained how the process works and most importantly that his team would not press. He promised to be there when I need him. Based on what I shared, Mike has built a personal web portal for me where he sends condos for my review. I just cannot get over how he was stilling willing to invest his time with someone who was not going to buy today. He made it very clear that he would be there every step of the way for me. I’ll be in Florida next month and look forward to meeting Mike and his team in person! S.C.”

– samuelcorners, Zillow Review

1. Property condition memo within 24 hours of every showing

Anything we observe at a walkthrough that could be a material fact gets documented in writing and delivered to you within a day. We do not rely solely on the seller’s disclosure form — our own observations are part of the record.

2. Insurance claim history pull before contract

For Florida properties, we pull the CLUE (Comprehensive Loss Underwriting Exchange) report or work with you to obtain it before contract. Prior wind claims, water claims, and roof claims are material facts that drive insurance pricing — and many sellers do not voluntarily share them.

3. Public records review for code violations

We check the county code enforcement portal for active and recent violations. We check the property appraiser’s site for permit history and any abandoned-permit issues. We check the clerk’s office for liens.

4. HOA / condo material-fact deep dive

For any property under HOA or condo governance, we review the financials, reserve study, milestone inspection status, recent meeting minutes (looking for pending assessments), and any active litigation. All material facts surfaced are documented to you in writing.

5. Listing history review

We pull the full MLS history — price changes, prior contracts that fell through, days-on-market resets from relistings, any patterns that bear on what the property is actually worth in this market.

6. Documentation of every disclosure

Every material fact we communicate to you goes in writing — email, signed acknowledgment, or memo. If a duty breach is ever alleged, the documentation defends both you and us.

What Florida Law Does Not Require Disclosure Of

Florida statute and case law have carve-outs even from this broad duty:

• Stigmatized property facts. Under F.S. 689.25, a homicide, suicide, or death on a property is NOT a material fact requiring disclosure. Same for whether a prior occupant had HIV or AIDS.
• Sex offender registry information. Buyers can search this independently; agents are not required to proactively flag it.
• Facts that are readily observable. Obvious cosmetic issues, dated finishes, visible exterior conditions — these are the buyer’s responsibility to notice during the inspection process.

Inside the boundaries, the duty is full, proactive, and documented.

How to Verify the Duty Is Being Met

Two practical tests:

1. Compare what your agent has put in writing against the property’s history as you discover it independently. Ask the inspector, the insurance company, the HOA, and the county for material facts. If your agent has not surfaced material facts that come up through these channels, that may be a duty breach.
2. Ask your agent in writing whether they have disclosed all known material facts. A competent agent will confirm in writing. An agent who hedges or refuses to confirm is operating below the duty floor.

If you discover a material fact that was known to the agent but not disclosed, document carefully and consider a complaint with the Florida DBPR. You may also have a civil claim under F.S. 475.41 and Johnson v. Davis.

The Bottom Line

Disclosing all known material facts is the duty that ensures you walk into a Florida real estate transaction with a complete picture of what you are buying. Florida law makes this duty universal across all licensees — Single Agents, transaction brokers, and (under Johnson v. Davis) every seller and seller’s agent in residential real estate. The Single Agent context adds rigor and documentation discipline to a duty that everyone owes you anyway. We chose Single Agent status because the rest of our fiduciary duties — loyalty, full disclosure, skill, care, and diligence — make sure the material-fact duty is met thoroughly and not just nominally. You can see how this connects to our other Single Agent duties on our Buyer Experience page.

Questions Clients Actually Ask

What counts as a “material fact” under Florida real estate law?

A material fact is any fact that materially affects the value of the property and is not readily observable to the buyer. The standard comes from Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), and includes property defects, environmental issues, legal issues, and significant market-context facts. The test is whether a reasonable buyer would consider the fact important to their decision.

Does the duty apply to transaction brokers and unrepresented sellers?

Yes. Under F.S. 475.278(2)(d) and the Johnson v. Davis common-law rule, every Florida real estate licensee — and every seller in a residential transaction — owes the material-fact disclosure duty to the buyer. The Single Agent role adds documentation rigor and surrounding fiduciary context, but the floor is universal.

What happens if my agent or the seller fails to disclose a material fact?

You may have multiple remedies: a Chapter 475 complaint with the Florida DBPR, a civil claim for damages under F.S. 475.41, and a civil claim under Johnson v. Davis. Document everything: when you discovered the fact, when the agent or seller knew or should have known, and the damages caused.

Are sellers required to fill out a property disclosure form?

Florida does not have a statutorily mandated property disclosure form, but most residential transactions use the standard Florida Realtors Seller’s Real Property Disclosure (Residential) form or the FAR-9 Seller’s Real Property Disclosure. Even without a form, the underlying material-fact disclosure duty still applies under Johnson v. Davis. The form is the customary documentation method, not the underlying duty.