Transparency is the backbone of any successful construction deal. When parties fail to disclose crucial information, whether intentionally or inadvertently, the consequences can be severe. Florida law imposes strict requirements on disclosure in construction transactions, and failure to comply can lead to costly disputes, legal penalties, and even contract nullification. If you are involved in a construction project—whether as a contractor, developer, or property owner—it is essential to understand your legal obligations and the potential fallout of non-disclosure. Continue reading and reach out to a skilled Florida construction lawyer from Ansbacher Law to learn about the ramifications of failing to disclose in construction deals. Here are some of the questions you may have:
What Happens When a Party Fails to Disclose Material Information?
Construction contracts are built on trust. When one party withholds vital information—such as structural defects, environmental hazards, or zoning restrictions—the other party may suffer financial losses or unexpected liabilities. Courts generally consider non-disclosure a form of misrepresentation, which can lead to serious legal consequences, including breach of contract claims, fraud allegations, and rescission of the agreement.
For example, if a property owner sells land for development but fails to disclose that it sits in a flood zone, the buyer may have grounds to void the contract and seek damages. Similarly, if a contractor knows that a building’s foundation is unstable but chooses not to disclose it, they could be held liable for future damages.
In many cases, Florida courts side with the injured party, especially if the failure to disclose resulted in significant financial harm.
Can Failing to Disclose Lead to Lawsuits?
Yes, and these lawsuits can be complex, expensive, and damaging to a business’s reputation. When a party discovers that important details were concealed, they may file a lawsuit for fraud, negligent misrepresentation, or breach of contract.
Under Florida law, an injured party must prove that the undisclosed information was material to the transaction and that the failure to disclose directly caused harm.
Fraud-based claims, in particular, carry serious consequences. If a court finds that a party intentionally concealed critical facts, punitive damages may be awarded on top of compensatory damages. This means that the offending party could be forced to pay significantly more than the actual harm caused.
Moreover, lawsuits often lead to costly delays, regulatory scrutiny, and strained business relationships—all of which can negatively impact construction projects in the future.
How Can You Protect Yourself from Non-Disclosure Disputes?
Avoiding disclosure-related disputes starts with a commitment to transparency. Whether you are a contractor, developer, or property owner, it is essential to provide full and accurate information about the project, property, and any known risks. Reviewing contracts carefully and ensuring they contain clear disclosure provisions can also help mitigate future legal battles.
In many cases, working with an experienced construction attorney can prevent potential pitfalls. A lawyer can review agreements, identify disclosure requirements, and ensure compliance with Florida construction laws. If a dispute arises, having legal counsel on your side can make all the difference in achieving a favorable outcome.
If you have further questions or wish to speak with our experienced legal team about a non-disclosure dispute, simply contact us today.
