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.”
Yep us people in the North will have higher insurance rates because of this and we don’t have flooding issues like they are having, sad.
Surprising this isn’t already law in a place not only surrounded by water but at low elevation and predisposed to some of the most horrific hurricanes and tropical storms.
I completely agree. The flooding probability of a property should be transparent and should be made part of the currently used Seller’s Property Disclosure (SPDR-3) REV 2020, along with age/condition of A/C and Water Heaters.
For those of you wondering…Flooding is addressed in the Sellers’ Disclosure. Although not required by law, it is a part of most all transactions. The new for is now required by law. Here are the questions on the Seller’s Disclosure:
3. Water Intrusion; Drainage; Flooding
(a) Has past or present water intrusion affected the Property?
(b) Have past or present drainage or flooding problems affected the Property?
(c) Is any of the Property located in a special flood hazard area?
(d) Is any of the Property located seaward of the coastal construction control line?
(e) Does your lender require flood insurance?
(f) Do you have an elevation certificate? If yes, please attach a copy.
(g) If any answer to questions 3(a) – 3(d) is yes, please explain:
1 Johnson v. Davis, 480 So.2d 625 (Fla. 1985).
The Seller’s Disclosure does have a section on any claims made to insurance companies, any flooding that the owner knows of… Also, the MLS Listing has a place to put down the flood zone of the property according to what is available by Florida’s Water Management and FEMA. So, it is whether the agent puts the flood zone on the listing and/or the seller writes the flood information on the already available Seller’s Disclosure. There is already too much redundancy in the numerous forms written by attorney’s. They just need to be used and buyers need to read them and understand what they are reading.
NOW it’s a law? A low lying state surrounded by water? SMDH
I’m in Hawaii. I can’t imagine NOT disclosing flood zone. As well, our seller’s disclosure specifically references water “Is there any existing or past damage to the property or any of the structures (interior/exterior) from earthquake, fire, smoke, flooding, leaks, landslides, falling rocks, tsunami, volcanic activity or wind?”. Carry on Florida.