Buying a For Sale By Owner Home in Florida: What You Need to Know
FSBO sellers in Florida are still legally required to disclose known defects — but without a listing agent managing the paperwork, more of the contract risk lands on you as the buyer.
Florida FSBO Disclosure Law — What Sellers Must Tell You
Under Florida law (established in Johnson v. Davis and codified in standard FL real estate practice), sellers are required to disclose all known material defects that are not readily observable by a buyer. This applies to FSBO sellers equally — the absence of a listing agent does not reduce the seller's disclosure obligations.
Required disclosures include:
- Known roof leaks or prior water intrusion — even if repaired
- Prior sinkhole activity or claims (required by §627.7073)
- Known mold, pest activity, or WDO damage
- Flood damage history or FEMA flood zone designation affecting insurability
- HOA existence, fees, and any pending special assessments (§720.401)
- Active code violations, unpermitted work, or open building permits
Key point: "I didn't know" is a defense, but "the buyer could have seen it" is not a blanket shield. If a seller knew and failed to disclose, FL courts have awarded rescission and damages. Get the disclosure in writing — verbal disclosures are nearly impossible to prove after closing.
FSBO Contract Red Flags for Florida Buyers
FSBO sellers often use informal contracts, downloaded templates, or contracts that were written to protect the seller. Before you sign anything, check for:
- No inspection contingency. The most important buyer protection in any FL contract. Without it, you can't cancel based on inspection findings without losing your earnest money.
- No financing contingency. If your loan falls through and there's no financing contingency, you may forfeit your earnest money deposit.
- Vague or missing appraisal contingency. If the home appraises below contract price and there's no appraisal contingency, you're on the hook to make up the gap or lose your deposit.
- Shortened inspection period. FL standard is 10–15 days. An FSBO seller pushing for 3–5 days is a red flag — it's not enough time to schedule and receive all inspections.
- "As-is" language without proper contingencies. As-is does not mean no inspection — it means the seller won't make repairs. You still have the right to inspect and cancel within the inspection period if the contract is written correctly.
- Missing title commitment deadline. You need time to review the title search for liens, judgments, or encumbrances. No deadline = no protection if issues surface late.
- Earnest money held by the seller. In FL, earnest money should be held in escrow by a licensed title company or real estate attorney — not the seller personally.
Escrow and Closing in an FSBO Transaction
Even without a listing agent, a Florida FSBO closing must go through a licensed title company or real estate attorney. The title company handles:
- Title search and title insurance commitment
- Earnest money escrow
- Lien search (HOA, city/county code liens, unpermitted work)
- Preparation of the deed and closing documents
- Collection and disbursement of all funds at closing
Do not close an FSBO deal without title insurance. FL doc stamp tax ($0.70 per $100 of purchase price on the deed) and intangible tax ($0.002 × loan amount) are still due at closing — the absence of a listing agent doesn't change FL's closing cost structure.
Vetting the FSBO Seller and the Property
- Pull the property appraiser record. Visit your county property appraiser's website and verify: owner name matches the seller, no outstanding code liens, accurate square footage and bed/bath count. Many FL counties show active permits and violations online.
- Check for HOA. Search the FL Division of Corporations (sunbiz.org) or the FL Dept. of Business and Professional Regulation to verify HOA status. Request the full HOA disclosure package — rules, financials, pending assessments, and estoppel letter.
- Order a full inspection bundle. General + 4-point + WDO + wind mitigation. In an FSBO deal, no one is pushing you to skip or shorten the inspection — use the full time.
- Run a title search before you finalize terms. Your title company will do this as part of closing, but you can request a preliminary search earlier if there's any concern about liens, divorce proceedings, or estate complications.
- Hire a real estate attorney to review the contract. A $500–$1,000 attorney review on a $350,000 purchase is the best money you'll spend. FL real estate attorneys can also serve as closing agent in lieu of a title company.
FL FSBO Closing Costs — Who Pays What
In a standard FL transaction, closing costs are negotiable — but there are conventions. In an FSBO deal, be explicit in the contract about who pays each:
- Doc stamp tax on the deed: Typically paid by the seller in most FL counties (except Miami-Dade, where it's split differently)
- Title insurance: Owner's policy traditionally paid by seller in most FL markets; lender's policy paid by buyer
- Intangible tax on mortgage: Buyer pays ($0.002 × loan amount)
- Settlement/closing fee: Negotiable — often split or paid by buyer
- Survey: Buyer's expense if required by lender
- Inspections: Buyer pays (general, 4-point, WDO, wind mit)
If the seller drafted the contract: Assume it was written to protect the seller. Have a real estate attorney or your buyer's agent (if you have one) mark it up before you sign. The FL Bar has approved standard form contracts (FR/BAR) that are balanced — FSBO sellers using non-standard contracts are usually doing so because it benefits them.
FL FSBO Buyer Guide — Printable Checklist
FSBO contract red flag checklist · FL disclosure requirements reference · Inspection bundle worksheet · Escrow and title vetting guide · Closing cost negotiation worksheet · Questions to ask before you sign. Created by a licensed FL real estate professional.
🛒 Get the FSBO Buyer Guide on EtsyAlso: FL First-Time Home Buyer Toolkit