Johnson v. Davis

Johnson v. Davis - The Florida Supreme Court case Johnson v. Davis established this disclosure requirement. In the case, the sellers told the buyers that visible water stains and peeling plaster were minor issues that had been fixed. Before closing, the buyers discovered serious water intrusion and learned the roof was defective and needed replacement. The buyers sued to cancel the contract and recover their deposit.The court ruled in favor of the buyers and stated that if a seller knows about defects that materially affect the value of the property and the buyer does not know and cannot easily see them, the seller must disclose them.This case changed Florida law. Before this decision, courts followed caveat emptor (“buyer beware”). After Johnson v. Davis, sellers became legally responsible for truthful disclosure.