A Palm Coast seller nearly faced a $22,000 lawsuit after closing because she forgot to disclose a Community Development District (CDD) assessment on her property disclosure form. The buyer discovered the annual charge three weeks after moving in and hired an attorney the same day.
Florida seller disclosure requirements center on one principle: sellers must reveal all known material defects that affect a property’s value. This standard comes from the 1985 Florida Supreme Court decision Johnson v. Davis, which eliminated the old “buyer beware” doctrine for residential sales. Florida Statute §689.25 also requires disclosure of specific items like sinkholes, coastal construction, and energy efficiency. But the statute is narrower than most states, and that gap is where post-closing disputes happen, especially in master-planned communities across Flagler County where CDD fees, HOA transfer charges, and flood zone reclassifications blindside buyers who were never told.
Key Takeaways
- Florida law requires sellers to disclose all known material defects, per Johnson v. Davis (1985) and F.S. §689.25
- CDD assessments, HOA obligations, and flood history are the 3 most commonly missed items in Palm Coast
- Sellers do NOT have to disclose deaths in the home or sex offender proximity under Florida law
- Flagler County property values dropped for the first time in 14 years in 2026 (FlaglerLive, 2026), making accurate disclosures even more critical during negotiations
What does the Johnson v. Davis standard actually require?
The 1985 Florida Supreme Court ruling in Johnson v. Davis requires residential sellers to disclose all known facts that materially affect the property’s value that a buyer cannot readily observe (Florida Supreme Court, 1985). This replaced the old caveat emptor (“buyer beware”) standard that had governed Florida real estate for decades.
The key word is “known.” Florida doesn’t require sellers to go hunting for problems. You don’t need to hire an inspector before listing your home. But if your Grand Haven pool deck has been cracking for two years and you’ve been patching it yourself, you can’t stay quiet because the buyer “should have noticed.”
The Johnson v. Davis standard is broader than the statutory form. The form covers specific categories. The court ruling covers everything material. So even if a defect doesn’t fit neatly into a checkbox on the standard disclosure form, a seller who knows about it and stays silent is legally exposed.
“I’ve watched sellers in Palm Coast spend more time debating whether a leaky lanai screen counts as ‘material’ than it would cost to just fix the screen,” says Charles Umpenhour. “When in doubt, disclose it. A $200 disclosure is cheaper than a $20,000 lawsuit.”
What are the Florida seller disclosure requirements on the statutory form?
Florida Statute §689.25 requires sellers to disclose specific items including energy efficiency, radon gas potential, building code violations, and whether the property is in a coastal construction control zone (Florida Legislature, 2026). The standard residential disclosure form expands on this with yes/no questions about structural condition, roof leaks, plumbing, and environmental hazards.
Here’s what the statutory form covers:
- Known defects in the roof, foundation, walls, and major systems (HVAC, electrical, plumbing)
- Presence of sinkholes or sinkhole activity, per F.S. §627.7073
- Whether the property lies in a flood zone
- History of Chinese drywall
- Radon gas disclosure (required on all contracts)
- Homeowners association obligations, including monthly fees
- Pending or existing code enforcement actions
In over 220 transactions across Flagler and Volusia counties, I’ve seen the biggest problems come from items that technically appear on the form but get checked “unknown” when the seller actually knew. A Belle Terre home I handled had a persistent moisture issue behind the garage drywall. The seller marked “unknown” for water intrusion. After closing, the buyer’s contractor found a paper towel roll stuffed into the wall cavity to absorb drips. That’s the kind of thing that turns a simple disclosure question into a fraud claim.
Which 3 items do Palm Coast sellers most often miss?
Based on common post-closing disputes in Flagler County, the three most frequently missed disclosure items are CDD assessments, flood zone changes, and HOA transfer fees (Flagler County Property Appraiser, 2026). These aren’t obscure technicalities. They’re line items that cost buyers real money.
CDD assessments
Communities like Grand Haven, Toscana, and parts of the P-Section in Palm Coast carry CDD assessments that appear on annual tax bills. Some run $1,500 to $3,000 per year. Sellers who’ve been paying them for a decade forget they’re unusual. Buyers coming from out of state (which describes a huge chunk of Flagler County’s market) have often never heard of a CDD. Florida law requires disclosure of CDD obligations under F.S. §190.048, and failure to include the CDD disclosure addendum can void the contract.
Flood zone reclassifications
FEMA remapped portions of Palm Coast in recent years, and some properties in the R-Section and along the Intracoastal shifted from Zone X (minimal flood risk) to Zone AE (high risk). That change can add $2,000 to $5,000 annually in flood insurance premiums. If you know your property was reclassified, that’s material. You disclose it.
HOA transfer fees
Several Palm Coast HOAs charge transfer or capital contribution fees at closing, ranging from $150 to over $1,000. Sellers sometimes don’t disclose these because they assume the title company will handle it. The title company will. But the buyer who discovers a $900 surprise fee at the closing table doesn’t care whose job it was.
Of the 10 transactions our brokerage closed in the past 12 months, 4 involved properties with CDD assessments, and in 2 of those cases the listing agent on the other side had not included the required CDD addendum. We caught both before closing. Not every buyer’s agent will.
What are sellers NOT required to disclose in Florida?
Florida’s disclosure law is more limited than most states, and sellers are specifically exempt from disclosing deaths on the property (including homicides and suicides), HIV/AIDS status of occupants, and proximity to sex offenders (F.S. §689.25, 2026). These exemptions surprise buyers who move from states with broader requirements.
To be specific:
- Deaths: No Florida seller has to disclose that someone died in the home, regardless of cause. This is codified in F.S. §689.25.
- Sex offender proximity: Sellers are not required to tell you the registered sex offender database shows a neighbor. Buyers can check the Florida Department of Law Enforcement registry themselves.
- Stigmatized property issues: Alleged haunting, prior drug activity that’s been remediated, and neighborhood disputes are not material defects under Florida law.
- Pending development nearby: The 22,000-home western expansion proposed for Palm Coast (FlaglerLive, 2026) or the new Del Webb community coming to Flagler County? Sellers don’t have to disclose future development plans unless they have direct knowledge of something affecting the property itself.
Florida also doesn’t require a standard property condition report like California’s TDS. The disclosure form is simpler, which means buyers in Palm Coast need to lean harder on their own inspections.
How do flood disclosures work for Florida property sales?
Florida sellers must disclose known flood damage and whether the property sits in a FEMA-designated Special Flood Hazard Area per both Johnson v. Davis and standard contract language (FEMA, 2026). In Palm Coast specifically, this matters enormously because many homes along canals in the C-Section and near the Intracoastal in Flagler Beach carry flood insurance requirements that buyers need to budget for.
The tricky part: if your property flooded in 2016 during Hurricane Matthew or took water during Ian in 2022, you must disclose that history. “No current flooding” is truthful but incomplete if the living room was underwater 4 years ago.
With Flagler County property values dropping for the first time in 14 years, buyers are scrutinizing every dollar. A clean flood disclosure builds trust. A gap in one gets discovered during insurance underwriting, and the deal falls apart at the worst possible moment.
(https://cuirealestate.com/listing-agent-palm-coast/)]
Can a buyer sue a Palm Coast seller for failing to disclose?
Yes. Under Johnson v. Davis, a buyer can rescind the contract or sue for damages if a seller knowingly concealed a material defect (Florida Bar, 2026). The buyer must prove the seller had actual knowledge of the defect and intentionally failed to disclose it.
The standard of proof matters. If your A/C compressor died the morning after closing, that’s probably not fraud. If your A/C had been jerry-rigged with zip ties for six months and you checked “no known defects” on the HVAC line, a judge won’t be sympathetic.
Damages can include repair costs, the difference in property value, and in egregious cases, rescission of the entire sale. I’ve seen a dispute over undisclosed water intrusion in a Bunnell property settle for $14,000 before it ever reached a courtroom. The seller’s repair cost would have been $3,200. Disclosure is always cheaper than litigation.
Frequently asked questions
Do Florida sellers have to disclose mold?
Yes, if they know about it. Under the Johnson v. Davis standard, known mold that affects habitability or property value is a material defect requiring disclosure (Florida Supreme Court, 1985). In Flagler County’s humid climate, mold behind bathroom walls and in attic spaces is common enough that inspectors check for it routinely.
Is there a specific Palm Coast seller disclosure form?
Florida doesn’t mandate a single statewide form, but most Palm Coast real estate agents use the Florida Realtors/Florida Bar “Seller’s Property Disclosure” form. CDD communities require an additional disclosure addendum per F.S. §190.048. HOA communities require a separate association disclosure summary.
What happens if a seller checks “unknown” on every disclosure question?
Marking everything “unknown” doesn’t create legal immunity. Courts have ruled that sellers cannot use “unknown” to avoid disclosing defects they actually know about (Florida Bar, 2026). A pattern of “unknown” answers can actually raise suspicion during litigation.
Do I need to disclose a past insurance claim on my Palm Coast home?
Florida law doesn’t explicitly require disclosure of prior insurance claims, but prior claims for water damage, fire, or sinkholes often reveal material defects that do require disclosure. The CLUE report (Comprehensive Loss Underwriting Exchange) will show claim history regardless, and buyers’ insurers typically pull it.
Does a seller have to disclose a sinkhole report?
Yes. F.S. §627.7073 requires sellers to disclose any sinkhole testing, reports, or claims to prospective buyers (Florida Legislature, 2026). This applies whether the testing confirmed or denied sinkhole activity. Concealing a sinkhole report is one of the fastest paths to post-closing litigation in Florida.
The practical bottom line for selling a house in Palm Coast FL
Fill out every line on the disclosure form honestly. Attach the CDD addendum if your community has one. Note any flood history, insurance claims, and structural repairs. If you’re unsure whether something counts as “material,” ask your listing agent to document it anyway.
Selling into a market where Flagler County values are adjusting downward means buyers and their attorneys are reading every disclosure form with a magnifying glass. A thorough, honest disclosure protects you legally and signals confidence in the property’s condition.
The $22,000 CDD dispute I mentioned at the top? The seller eventually settled for $8,500 and spent another $4,000 on legal fees. The CDD addendum she forgot would have taken 10 minutes to complete.
Ten minutes. That’s all it costs to stay out of court.