WATER, WATER EVERYWHERE (and now a disclosure to make)
Authored By: Scott Dunlap, Esq. sdunlap@dunlapmoran.com
Effective October 1, 2024, there is yet another disclosure for a Seller to provide to a Buyer of residential property in Florida. A flood disclosure is now required pursuant to Florida Statute §689.302.
Sellers, as of 10/1/24, must disclose whether the Seller has filed a claim with an insurance provider relative to flood damage to the property, and also whether the Seller has received federal assistance for flood damage to the property, including, but not limited to, assistance from FEMA. For purposes of the disclosure, “flooding’ is defined as a general or temporary condition of partial or complete inundation of the property caused by the overflow of inland or tidal waters; the unusual and rapid accumulation of runoff or surface waters from any established water source, such as a river, stream or drainage ditch; or sustained periods of standing water resulting from rainfall.
The statute requires that the disclosure be completed and provided to a purchaser of residential property, at or before the time that the sales contract is executed.
There is no mention in the statute as to whether sales contracts executed prior to October 1, 2024 (but which have not yet closed) now need to be supplemented with this disclosure. However, so as to minimize any potential issues after closing between the Buyer and Seller (and I would suggest to reduce potential issues applicable to Realtors and closing agents after closing), it is recommended that for pending contracts executed prior to October 1, 2024, the flood disclosure be provided by the Seller and acknowledged by the Buyer prior to the closing of the subject sale.
Also, keep in mind that the new flood disclosure requirement does not take the place of having the Seller complete the typical Seller Property Disclosure Statement. Applicable portions of the Seller Property Disclosure Statement solicit Seller answers to questions pertaining to the subject property’s past or present water intrusion, or drainage or flooding issues known to the Seller.
Now, if only the powers that be can turn their focus back to the homeowner insurance industry, and help remove the albatross of high, homeowner insurance costs…then that would be a story.