Florida's New Flood Disclosure Law
Florida’s New Flood Disclosure Law Takes Effect Today
Starting today, October 1, 2024, Florida sellers of residential properties are required to disclose information about their property’s flood history to potential buyers. This new law, House Bill 1049, aims to provide transparency and protect buyers from unexpected flood-related issues.
Key Points:
- Disclosure Requirement: Sellers must disclose if they’ve filed flood damage claims or received federal flood assistance for the property.
- Timing: The disclosure must be made before or at the time of contract signing.
- Property Types: This applies to all residential real estate transactions, including new construction and condominiums.
- Material Flood Damage: Even without claims or assistance, sellers must disclose flood damage that significantly affects the property and isn’t easily noticeable.
- Pending Contracts: If your residential sale contract was signed before October 1st but hasn’t closed yet, you must still obtain the necessary flood disclosures.
Why is this important?
- Buyer Protection: This law ensures buyers are informed about potential flood risks before purchasing a property.
- Seller Protection: Compliance helps protect sellers from legal issues related to undisclosed flood damage.
Steps to Comply:
- Obtain Forms: Get the “Flood Disclosure FD-1” form from Florida Realtors and the “Required Insurance Disclosure” form from your local Realtor association.
- Seller Disclosure: Have sellers complete the forms accurately.
- Signatures: Ensure both buyer and seller sign the completed forms.
- Recordkeeping: Maintain copies of the signed disclosures in your transaction files.
Note: For closings scheduled on October 1st, ensure the signed disclosures are in place before the closing.
Preferred Settlement Services is a full-service title and closing company. With decades of combined experience, our team ensures a smooth closing process, no matter the challenges. Contact us at 941-376-9551 for more information or to schedule a closing.
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