Disclosures

Disclosure Duties of Licensees - A later case, Rayner v. Wise Realty, extended this duty to real estate licensees. Licensees must disclose known material defects, even though the original case involved only residential property. Licensees are expected to act ethically in all real estate transactions.An “As Is” contract does not remove the seller’s duty to disclose known material defects. Instead, it usually means the seller is not responsible for making repairs. The buyer is expected to conduct inspections and due diligence to understand the property’s condition and repair costs before completing the purchase.Certain information does not have to be disclosed and is legally protected:Whether a current or former occupant has or had HIV or AIDSWhether the property was the site of a homicide, suicide, or death. Florida law states that this information is not considered material in a real estate transaction. Sellers and licensees cannot be sued for failing to disclose it. Medical information is private, and individuals with HIV or AIDS are protected under fair housing laws.