Florida Realtor • November/December 2024 • New Florida Flood Disclosure Requirements

Florida sellers must disclose flood damage history to buyers before contract signing to provide transparency in real estate transactions.

As of Oct. 1, 2024, 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 estate property. This disclosure must be done at or before the time of a contract being executed.

Sellers will need to disclose:
1. Whether they have filed a claim with their insurance provider relating to flood damage on the property.

2. 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 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.

Currently, Florida courts are split as to whether the tendency to flood is “readily observable.” This matters because if the tendency to flood is readily observable, then there is not a requirement this information be disclosed to a buyer of residential real property. If a buyer is not familiar with an area, they may have no clue the property tends to flood. This can be especially true when the flooding is seasonal.

The Federal Emergency Management Agency (FEMA) has the authority to designate properties as a “severe repetitive loss property.” This means that the home has flooded twice, with damage totaling the value of the property OR which have flooded four times with at least $5,000 of damage each time. There are roughly 45,000 of these properties in the United States, and about 3,100 are in Florida.

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.

SMART IDEA
Impacted by Hurricanes Helene and Milton? Florida Realtors® Disaster Relief Fund is here for you. The fund is open to Realtors®, Realtor boards/associations and staff whose primary residential home or real estate office sustained damages due to the storms. Go here to apply: floridarealtors.org/drf