What Homebuyers Need to Know About Florida’s New Flood Disclosure Requirement

Starting October 1, 2024, a new law goes into effect in Florida that directly impacts homebuyers and sellers across the state. If you’re planning to buy a home soon, especially in an area prone to flooding, this could be crucial information.

What Is the New Flood Disclosure Requirement?

The new law requires all sellers of residential real estate to provide a statutory flood disclosure to buyers. This disclosure must be presented before or at the time the sales contract is executed. The goal is to ensure that buyers are fully informed of any flood-related claims or federal assistance the property has received due to flood damage.

Here’s what the law specifically requires sellers to disclose:

“Flood Insurance Claims: The seller must state whether they have ever filed a claim for flood damage with any insurance provider, including the National Flood Insurance Program (NFIP). Federal Assistance: The seller must disclose if they have received any federal assistance related to flood damage, such as help from FEMA (Federal Emergency Management Agency). It’s important to note that this requirement applies to all types of residential property, even vacant land zoned for residential use.”

What Does This Mean for You as a Buyer?

As a buyer, this new disclosure provides you with added transparency. Whether you’re looking to buy a home or vacant land, knowing the property’s flood history gives you critical insights into potential risks, allowing you to make more informed decisions.

However, it’s essential to understand that this disclosure does not cover every possible flood-related issue. For instance, if the property has experienced flooding but the seller didn’t file an insurance claim or receive federal assistance, the seller may still answer “no” to both questions on the form. In these cases, additional steps like hiring a thorough home inspector could help you uncover hidden issues.

Remember, under Florida law, sellers are still required to disclose all known facts that may materially affect the property’s value if those facts are not readily observable. So, even if there hasn’t been a flood claim, sellers must inform you of any known issues that could impact the property’s value.

Key Points for Buyers to Keep in Mind:

i) Applies to All Residential Property Types: Whether you’re buying a home or vacant land, this new flood disclosure applies.

ii) Transparency on Flood History: You’ll get clear information on whether any flood-related insurance claims have been made or federal assistance received.

iii) Seller’s Broader Duty to Disclose: Sellers must still disclose any known issues affecting the property’s value, whether related to floods or other concerns.

iv) Buyers with Open Offers: If you have made an offer but have not yet signed a fully executed agreement by September 30, 2024, the seller must provide this new disclosure starting October 1st.

Why This Matters

Flooding is a significant concern for many Florida homeowners. Whether it’s due to hurricanes, heavy rainfall, or proximity to water sources, understanding the flood risk of your potential home is critical. This new law is designed to give buyers better information, so you can confidently evaluate whether a property fits your needs.

What You Can Do as a Buyer

To protect your interests as a buyer:

Ask for the Disclosure: Make sure to ask your real estate agent or seller for the statutory flood disclosure early in the process.
Consider Flood Insurance: Even if the property hasn’t experienced a flood in the past, talk to your insurance agent about the possibility of purchasing flood insurance.
Schedule a Thorough Inspection: Hire an experienced home inspector who can assess the property’s flood risk and any potential damage that may not be easily visible.

If you’re considering purchasing a property in Florida and have concerns about the new flood disclosure law, don’t hesitate to contact me. Having all the facts in hand before making a major investment like buying a home will give you peace of mind and help you avoid unexpected costs down the road.

For more information on what steps you can take if a seller fails to disclose defects, visit our post titled “What Can Florida Buyers Do If a Seller Doesn’t Disclose Defects.”

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