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Can we expect adequate disclosure from a seller in preforeclosure?

We are home owners in Colorado looking at foreclosure opportunities for a home in Florida. With a preference for avoiding "as is" risk, we are checking out preforeclosure houses/townhouses near Fort Lauderdale. Apart from the Appraiser's report, and a Home Inspection report, can we reasonably expect adequate disclosure from a (presumably) reluctance seller? Is there anything in Florida State law which gives us that little extra protection? Does anyone have any ideas about the type of "serious defects" that wouldn't necessarily come up in the specialist reports?

Public Comments

1. While sellers are mandated to disclose any known defects to potential buyers, how would you prove that the seller knew of the defect ? If you DO manage to prove it, what is your recourse? A judgment in a court of law against someone who can't even afford to own the house. Rely MOSTLY on the report you get from a qualified home inspector. Even though you may have legal recourse against a seller who hides a defect, getting resolution (translation = MONEY) out of that seller is slim.
2. in order to hold a seller responsible, they would have to know of a material defect and intentionally try to hide that defect also this assumes that the seller has any assets to collect, if they are in preforeclosure might not have much assets left to collect
3. In the last 40 years a multitude of Federal and State laws have been enacted to protect the buyer. Some 28 states have laws requiring home sellers to inform buyers about any defect which affects or potentially affects the value of the home negatively. Florida case law supports the same principle of requiring full disclosure of sellers. In the traditional real estate market a buyer should insist that the seller and his/her agent provides a full list of defects both major and minor. An "ignorance " defense can't succeed if the problem should reasonably been known about or investigated. Having said all that, as your other readers have pointed out, you are not necessarily dealing with a seller who is motivated to cooperate, nor one it would be worth your while suing for just cause. And reliance on these laws is a little dangerous, with too many exceptions and exclusions. Banks and other REO lenders, Government agencies, court appointed trustees, auctioneers, are all excluded from disclosure, after all they never lived in the foreclosed property so could not reasonably be expected to know about defects. It's up to the buyer to find out as much as possible, and that includes hiring your own appraiser, paying for a Home Inspection report and looking and asking the seller yourself, even if you have some doubt about an adequate answer.