Johnson v. Davis in Real Estate

The Johnson v. Davis case (Florida, 1985) forever changed real estate law by establishing that sellers must disclose known material defects that are not visible to buyers. It’s the foundation of modern seller disclosure requirements used across the U.S.

📜 Case Background

In Johnson v. Davis, Florida homeowners sold a house after assuring buyers there were “no roof problems.” Shortly after, heavy rain revealed significant leaks, leading the buyers to sue. The Florida Supreme Court ruled in the buyers’ favor, stating that sellers must disclose any known defects that materially affect property value or safety.

  • Before this case: “Buyer beware” applied—sellers didn’t have to reveal hidden issues.
  • After this case: Sellers became legally obligated to disclose material defects they knew about.
  • This ruling set a precedent now followed in most U.S. states.

🔍 Latent vs. Patent Defects

The ruling centered on latent defects—problems not easily visible to the buyer, such as leaks, mold, or electrical issues behind walls. Patent defects, by contrast, are obvious and don’t require disclosure because a reasonable inspection would reveal them.

For more context, see Seller’s Duty to Disclose Latent Defects — which expands on this legal concept and how it applies to modern real estate sales.

🏠 Why Johnson v. Davis Matters for FSBO Sellers

If you’re selling without an agent, this case highlights your responsibility to disclose any issues you know about. The best way to comply is by completing a Seller’s Disclosure Statement and including it before listing on the MLS.

When you list your home on the MLS through Brokerless, you’ll be prompted to include these disclosures. This ensures transparency, avoids legal risk, and builds buyer confidence.

✅ Key Takeaways

  • Sellers must disclose hidden defects known to them.
  • Honesty protects you from lawsuits after closing.
  • Disclosure forms are now standard in every MLS listing package.
  • The Johnson v. Davis rule applies even if the home is sold “as is.”

For more on how “as is” sales work, read What Is an “As Is” Addendum in Real Estate?