If you’re buying or selling residential property in Florida, you’ll want to pay close attention to a new law that will impact real estate transactions starting October 1, 2024. Our Governor signed legislation in May mandating flood disclosures for residential property sales. Here’s a breakdown of what you need to know about this important new requirement.

Key Details of the New Law

Signed into law on May 29th, the new statute (number 689.302) requires sellers to provide buyers with specific information about flood risks and history before or at the time of signing a contract for residential property. This move aims to enhance transparency and protect both buyers and sellers from potential disputes related to flood damage.

What Sellers Must Disclose

Under the new law, sellers are obligated to disclose several critical pieces of information:

Insurance Claims: Sellers must indicate whether they have filed a claim with an insurance provider for flood damage.
Federal Assistance: Sellers need to disclose if they have received federal assistance from FEMA due to flood damage.
Flooding History: Sellers are required to sign a statement affirming whether the property has ever been inundated by tidal waters, runoff, or standing water from rainfall, whether temporarily, partially, or completely.

Defining Flooding

The law provides a clear definition of flooding to ensure consistency in disclosures. Flooding is characterized as a general or temporary condition of partial or complete inundation caused by:

Overflow of inland or tidal waters.
Unusual and rapid accumulation of runoff or surface waters from established sources like rivers or drainage ditches.
Sustained periods of standing water due to rainfall.

What This Means for Buyers and Sellers

For buyers, this new requirement offers greater transparency and allows for a more informed decision when purchasing a home. It helps ensure that you are aware of any potential flood risks or previous flood-related issues before committing to a purchase. For sellers, it’s crucial to familiarize yourself with these new disclosure requirements to avoid any legal complications. Ensuring that all necessary information is provided accurately and promptly will help streamline the sales process and maintain a positive transaction experience.

Listen to our latest podcast episode to hear Dion and Ashley share more insights into this new law and how you can be compliant!