When making a major investment like purchasing a property, buyers need to have as much information as possible. Without this critical information, they may choose the wrong property or overlook key details that could affect their decision.

To help buyers stay well-informed during the buying process, House Bill (H.B.) 1049 was passed in May and took effect at the beginning of October. This new law requires sellers to provide a flood disclosure to prospective buyers. With recent hurricanes impacting Florida's west coast, the timing for such a disclosure requirement couldn't be more appropriate.

What Do Sellers Need to Disclose to Buyers?

For years, the principle of “caveat emptor” or “buyer beware” placed the onus on buyers to identify hidden defects or issues with homes. However, the 1985 Florida Supreme Court case of Johnson v. Davis changed that, mandating that sellers must disclose any known information about defects that could affect a home's value, including hidden defects.

Today, sellers typically provide a standard disclosure form that includes information on:

  • Roof problems

  • Structural issues

  • Lead paint

  • Electrical issues

  • Legal claims against the property

  • And now, flooding information

Buyers can also request additional information if they or their real estate agent deem it important for the decision-making process. If the seller has knowledge of an issue, they are required to disclose it.

What Flooding Information Does H.B. 1049 Require Sellers to Disclose?

Given Florida’s low elevation—on average only 100 feet above sea level—and rising sea levels, more homes are at risk of flooding. Therefore, it is crucial for buyers to understand the flood risks before purchasing a property.

Under H.B. 1049, sellers must now include:

  • A statement informing buyers that flood insurance is NOT included in homeowner’s insurance and recommending they discuss flood insurance with their agent.

  • Disclosure of any history of flood insurance claims.

  • Disclosure of any history of receiving federal assistance for flood-related property damage.

However, this bill does NOT require sellers to disclose whether the property has experienced flooding if they didn’t have flood insurance or receive government assistance for it. Buyers should continue to research flood zones and consider the costs of flood insurance when deciding on a new property.

Get Help Navigating the Buying or Selling Process With Cape Waterfront Living

The legal landscape of buying and selling homes is always evolving. Staying updated with new laws, regulations, and disclosure requirements is crucial, but it can be a daunting task when you're focused on finding your dream home or selling to take the next step in life.

At Cape Waterfront Living, we are well-versed in and up-to-date on all legal requirements, including House Bill 1049. We’ll ensure you have all the information needed to make confident decisions in your next purchase or to fulfill all legal obligations as a seller.