Florida REALTORS News
Florida sellers must disclose flood damage history to buyers before contract signing to provide transparency in real estate transactions.
Starting October 1, 2024, there is a new flood disclosure requirement in Florida. Florida Statute 689.302 requires a seller to complete and provide a flood disclosure to a buyer of residential real property. This disclosure must be done at or before the time of a contract being executed.
Sellers will need to disclose:
Whether they have filed a claim with their insurance provider relating to flood damage on the property.
Whether they have received federal assistance for flood damage to the property.
For purposes of the new disclosure, “flooding” is defined as a general or temporary condition of partial or complete inundation of the property caused by any of the following:
The overflow of inland or tidal waters
The unusual and rapid accumulation of runoff or surface waters from any established water source
Sustained periods of standing water resulting from rainfall. Some examples of an established water source can be a river, a stream, or a drainage ditch.
FEMA’s policy is to share past flood history with ONLY a property owner who holds an active flood insurance policy. This means that prospective buyers are unable to get this information prior to closing on the home.
Additionally, homeowners’ insurance policies tend to not cover damage resulting from floods. Buyers should always be encouraged to discuss their need to purchase separate flood insurance coverage with their insurance agent.
This new disclosure requirement will allow buyers to have crucial information prior to executing a sales contract.
