Homeowners Must Disclose Flood Risks When Selling: New Law

Photo for illustrative purposes only. Photo by Clint Patterson, Unsplash

After being hit with Hurricane Helene and Hurricane Milton, many Floridians’ homes saw flood damage and many of the homeowners have since decided to sell. House Bill 1049, which came into effect on October 1, adds a caveat to these sales. 
​
While the timing seems too perfect after the devastating flood damage that Florida is still in recovery from in the wake of the two major hurricanes, this bill was actually filed on November 28 last year, unanimously voted through in the House and Senate, and then signed into law by Governor DeSantis this past May 29. 

Under this new law, sellers of residentially zoned property are required to provide the buyer with a form that discloses the property’s flood risks and defines flooding. On the form, sellers need to assert whether a flood-related insurance claim has been filed on the property and if they have received federal assistance for any flood damage. The form also has to prompt the buyer to look into flood insurance, as homeowners insurance does not cover flood damage.

This form must be provided to the buyer prior to purchase completion. However, the seller is permitted to wait until the time of the contract signing to disclose the fact that the house had taken previous flood damage, which could put the buyer in a tough spot.

Some Floridians might see this new law as an inconvenience, whereas others might consider it a protection. Regardless, even before this law made it mandatory for anyone selling residential property to disclose the property’s flood history and other flood information, Florida already had standard, mandatory disclosure laws in place, including statute 689.261.

For complete details on this new law, click here to read both pages of House Bill 1049. For the official summary of the bill, click here. 
​
Article by Ema Tibbetts