October 22, 2024

Florida’s New Flood Disclosure Law: What You Need to Know

Florida’s real estate landscape is changing, and it’s not just due to rising sea levels. A new law, effective October 1, 2024, mandates that sellers disclose flood-related information to potential buyers. This shift in policy has significant implications for both buyers and sellers in the Sunshine State’s property market.

The New Mandate: HB 1049

House Bill 1049, now codified as Section 689.302 of the Florida Statutes, adds flood damage and flood claims to the list of required disclosures in residential real estate transactions. This law aims to provide greater transparency in property sales, particularly crucial in a state vulnerable to flooding.

The law defines flood damage as the overflow of inland or tidal waters, the unusual and rapid accumulation of runoff or surface waters from established water sources (such as rivers, streams, or drainage ditches), and sustained periods of standing water resulting from rainfall.

Impact on Sellers and Buyers

Sellers of residential property in Florida must now disclose any history of flood-related damages, provide information about past flood claims, and inform buyers that standard homeowner’s insurance policies typically don’t cover flood damage. This disclosure must be made at or before the time of the sales contract.

For buyers, this law provides more comprehensive information about a property’s flood history, an opportunity to make more informed decisions about flood insurance needs, and a better understanding of potential risks associated with the property.

How to Leverage This Information

Sellers should be proactive in gathering documentation on their property’s flood history, including any filed flood-related claims or federal assistance received. It’s crucial to update disclosure forms to comply with the new law. If a property has a history of flooding, sellers might consider implementing flood mitigation measures, potentially increasing the property’s value and appeal to buyers.

Buyers, on the other hand, should carefully review flood disclosures, especially when considering coastal or low-lying properties. The new law encourages evaluating flood insurance options with an insurance agent. For properties with a history of flooding or in high-risk areas, buyers might consider hiring a flood risk assessment professional.

The Bigger Picture

This law represents a significant shift in Florida’s approach to real estate transactions. It acknowledges the growing importance of flood risk in property valuation and ownership decisions. As climate change continues to impact coastal regions, such transparency measures may become increasingly common nationwide.

Understanding and properly utilizing this new disclosure requirement allows both buyers and sellers to navigate Florida’s real estate market more effectively. It’s a step towards more informed decision-making in a state where water is both a blessing and a potential hazard.

By providing this new level of transparency, the law aims to protect both buyers and sellers, ensuring that all parties are fully aware of a property’s flood history and potential risks. This knowledge empowers individuals to make decisions that align with their risk tolerance and financial capabilities.

For real estate professionals, this law underscores the importance of staying informed about environmental factors that can impact property values and transactions. It also adds additional disclosure requirements that should be discussed with potential sellers prior to listing a property for sale.

As Florida continues to grapple with the realities of climate change and its impact on real estate, this law serves as a model for how legislation can adapt to protect consumers and maintain the integrity of the property market. It’s a reminder that in the face of environmental challenges, information and transparency are key to building resilience in our communities and our real estate practices.

How I Can Help

As a real estate professional deeply invested in protecting my clients’ interests, I see Florida’s new flood disclosure law as a crucial step towards transparency in our property market. Whether you’re buying or selling a home in Florida, understanding the implications of this new law is vital. I invite you to reach out to me for a consultation on how these changes might affect your real estate transactions. Let’s work together to ensure your interests are protected. Your peace of mind is my priority.

Jason M. Vanslette
Chair, Real Estate Division
Kelley Kronenberg-Fort Lauderdale, FL
(954) 370-9970
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About the Author:

Jason Vanslette is an AV Preeminent-rated Partner and Chair of Kelley Kronenberg’s Real Estate Division. His practice focuses on two key areas: overseeing representation of mortgage servicers, lenders, and financial service providers in foreclosure, bankruptcy, and title litigation matters; and providing crucial legal guidance to clients in residential real estate transactions. Jason leads a team of attorneys barred in Florida, Illinois, Indiana, and New York, expanding the firm’s reach in mortgage default and lender representation. His extensive experience in both litigation and transactional matters in Florida uniquely positions him to offer comprehensive legal protection for clients in the real estate and mortgage lending sectors. Jason’s commitment to staying at the forefront of Florida’s real estate and mortgage law ensures his clients receive cutting-edge legal strategies tailored to their specific needs, whether they’re financial institutions or individual homebuyers.