As of October 2024, a new Florida law, House Bill -1049, requires that sellers disclose a property’s flood risk to prospective buyers. Previously, sellers and real estate agents in Florida were not obligated to inform buyers about a property's risk of flooding. Now, sellers must disclose any history of filed insurance claims for flood damage and any federal assistance received due to flooding. The law also provides a clear definition of what constitutes a flood.
The form requires sellers to state whether any flood-related insurance claims have been filed on the property and if federal assistance has been received for flood damage. It must also prompt buyers to consider purchasing flood insurance, as standard homeowners insurance does not cover flood damage.
This disclosure form must be provided to the buyer before the sale is finalized. However, sellers are allowed to wait until contract signing to reveal any prior flood damage to the property, which may leave buyers with limited time to evaluate this critical information.
Industry leaders see this law as a positive step for Florida’s real estate market, emphasizing that added transparency benefits all parties. Increased clarity ensures that buyers know what they’re committing to in a property purchase, helping to prevent future issues related to undisclosed risks. Given that buying a home is one of the largest investments people make, this law supports more informed decision-making, reducing the chance of unwelcome surprises after purchase.
While the law does not mandate disclosure of every instance of past flood damage, sellers are still required to disclose any factors that could impact a property's value. This new law is viewed as a move toward even greater transparency in property transactions.
Florida real estate has long required a Seller Property Disclosure report, a document that has become more comprehensive over the years. With HB-1049, the flood section in this report will be expanded, empowering buyers with critical information on the flood history of properties. This adjustment is seen as especially timely, given the increasing intensity of storms in the region, which underscores the need for buyers to fully understand potential climate-related risks.
Perhaps most importantly, this law encourages discussions between sellers and buyers about the value of purchasing separate flood insurance. In Florida, property insurance and flood insurance are separate policies. Even for homes in low-risk areas, flood insurance may offer significant protection. This new regulation provides a basis for real estate agents to educate buyers on flood insurance’s importance, which can be crucial after severe weather events, even in areas traditionally considered low-risk.
Note: This bill was originally filed on November 28, of 2023 and unanimously voted through the house and senate, then signed into law by Governor DeSantis.
General Bill by Judiciary Committee and Regulatory Reform & Economic Development Subcommittee and Hunschofsky (CO-SPONSORS) Arrington; Cassel; Chaney; Cross; López, J.; Lopez, V.; Mooney; Nixon; Valdés; Woodson
Flood Disclosure in the Sale of Real Property: Requires seller of residential real property to provide specified information to a prospective purchaser; specifies how such information must be disclosed.
Effective Date: October 1, 2024
Last Event: Chapter No. 2024-215 on Thursday, May 30, 2024 9:31 AM
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