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A new Florida law, effective Tuesday, requires sellers to disclose a property's flood risk to potential buyers. Previously, property owners and real estate agents were not obligated to inform buyers about flooding risks.
Under the new law, sellers must reveal if a property has any insurance claims for flood damage and whether federal assistance has been granted due to flooding. The law also defines what constitutes a flood.
Rose Kemp, president of the Orlando Regional Realtor Association, believes that transparency in the homebuying process strengthens the market. “It's crucial that buyers know what they’re getting into, as purchasing a home is often the largest transaction they’ll make,” she stated. “We want the American dream to remain just that, not turn into an American nightmare.”
While the law does not explicitly require sellers to disclose a property’s history of flood damage, they must share any information that could impact the home's value. Experts view this legislation as a step toward increased transparency.
Kemp, with over two decades of real estate experience, noted that Florida has long required a Seller Property Disclosure report, which has become more detailed over time. This new law enhances the flood section, compelling sellers to provide additional information.
She emphasized the importance of these changes, especially as storms become more severe in Florida. “It’s about fairness to buyers, allowing them to fully understand what they’re purchasing and the potential risks involved,” Kemp said.
Importantly, the law encourages discussions between sellers and buyers about the need for separate flood insurance. Property and flood insurance are distinct policies. Kemp highlighted that even homes in low-risk flood zones, known as X-Zones, should consider flood insurance, as these areas can still experience flooding, leaving uninsured homeowners vulnerable after storms.
Source: https://www.cfpublic.org/
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