Starting October 1, 2024, a new law in Florida will impact how real estate transactions are conducted across the state. Under Florida Statute 689.302, sellers of residential real property must complete and provide a flood disclosure to buyers at or before the time a contract is executed. This new requirement aims to enhance transparency in real estate transactions by ensuring buyers are fully informed of any potential flood risks associated with a property. What Sellers Need to Know About the New Disclosure Requirement If you’re planning to sell your home in Florida, it’s important to understand the specifics of the new flood disclosure requirement. Here’s what you need to know: What Information Must Sellers Disclose? Under the new law, sellers are required to disclose the following: Insurance Claims Related to Flood Damage:Sellers must disclose whether they have ever filed a claim with their insurance provider for flood damage to the property. This includes any claims related to flood events, regardless of the amount of damage or whether the claim was approved or denied. Federal Assistance for Flood Damage:Sellers must also disclose whether they have received any federal assistance for flood damage to the property. This could include disaster relief funds from FEMA or other federal programs designed to help property owners recover from flood-related events. What is Considered “Flooding” Under the New Law? To comply with Florida Statute 689.302, it’s essential to understand what qualifies as “flooding” for disclosure purposes. The law defines "flooding" as a general or temporary condition of partial or complete inundation of the property caused by any of the following: The Overflow of Inland or Tidal Waters:This includes situations where water from a river, lake, or ocean overflows its normal boundaries and inundates nearby properties. The Unusual and Rapid Accumulation of Runoff or Surface Waters:Flooding may occur due to a sudden accumulation of runoff or surface water from any established water source, such as heavy rainwater or melting snow. An established water source can be a river, stream, drainage ditch, or similar body of water. Sustained Periods of Standing Water Resulting from Rainfall:Even if the water does not originate from an established body of water, sustained periods of standing water on the property due to excessive rainfall are considered “flooding” under the new law. Why Is This Disclosure Important? The new flood disclosure requirement aims to provide buyers with a clearer understanding of the potential risks associated with a property. In a state like Florida, where flood risks are prevalent due to its unique geography and weather patterns, this transparency is crucial. By disclosing any history of flood claims or federal assistance, sellers offer buyers an opportunity to make more informed decisions, consider necessary precautions, and better assess the value and insurability of a property. How Should Sellers Prepare for This New Requirement? To comply with the new law, sellers should take the following steps: Review Past Records:Gather any records related to flood damage, insurance claims, and federal assistance received for flood-related events. This may include documentation from your insurance provider or federal agencies such as FEMA. Understand the Legal Requirements:Familiarize yourself with the specifics of Florida Statute 689.302 to ensure you understand what needs to be disclosed and the definition of “flooding” as per the law. Complete the Flood Disclosure Form:Work with your real estate agent or legal advisor to accurately complete the flood disclosure form. This form should be provided to potential buyers either before or at the time of contract signing. Be Transparent and Upfront:Full transparency is not only a legal requirement but also a best practice in real estate transactions. Being upfront about any flood damage history can prevent disputes, build trust with buyers, and facilitate a smoother sales process. What Does This Mean for Buyers? For buyers, this new requirement ensures greater transparency regarding the potential flood risks of a property. Buyers should: Carefully Review the Flood Disclosure Form:Make sure to thoroughly review the seller’s disclosure for any indications of past flood damage or federal assistance received. If something is unclear, don’t hesitate to ask questions. Conduct Additional Research:Use resources like FEMA flood maps or consult local flood risk data to gain a comprehensive understanding of the property’s flood risk. Seek Professional Advice:Consider consulting with a real estate professional, home inspector, or flood risk expert to fully understand the implications of any disclosures. Conclusion The new flood disclosure requirement in Florida represents an important step toward greater transparency in real estate transactions. Whether you’re a seller or a buyer, being informed and prepared for this change is crucial to navigating the real estate market effectively. By understanding and complying with Florida Statute 689.302, sellers can ensure a smoother transaction process, while buyers gain essential insights to make confident, informed decisions. Stay tuned for more updates on real estate regulations and tips on how to navigate the changing landscape of the Florida housing market!