A new law went into effect today in Florida that requires home sellers to disclose their property’s flood risk to buyers.
Central Florida Public Radio reported HB-1049 mandates that sellers inform buyers if insurance claims for flood damage had been filed on their property. The new law also requires sellers to acknowledge if they received federal assistance due to flooding. However, the law does not make a specific provision requiring a seller to disclose a property’s history of past flood damage.
The law includes language that defines what could be considered as a flood. Prior to HB-1049, sellers and their real estate agents were not required to inform buyers about a property’s risk for flooding. Property insurance and flood insurance are two separate policies, and the new law’s backers hoped it will encourage conversations about the importance having flood insurance.
“I think that’s actually a really positive thing for the market,” said Rose Kemp, president of the Orlando Regional Realtor Association. “We can’t have enough of ensuring that people know what they’re getting into. It’s obviously the largest transaction most people make. We don’t want the American dream to turn into the American nightmare. So, things like this are good.”
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