What Do Florida's New Flood Disclosure Laws Mean for Homebuyers?

March 05, 2025

Florida's climate can be erratic at the best of times, so floods are common in a huge portion of its territory. There's no shortage of risk factors, like the state's intense hurricane season or its proximity to sources of water. That's why it's not rare for homebuyers to ask about the likeliness of flooding, and the wrong answer will make many of them walk out of a deal, no matter how appealing it is on the surface.

None of this is new in an area that can go from sunny to pouring rain in the blink of an eye, and we've seen the destruction some of these storms can cause. Real estate companies in Florida are expected to ensure that buyers are aware of the risks before the purchase, but now sellers are also legally obligated to do their part with the state's new flood disclosure requirements.

What Is the Flood Disclosure Law

As outlined by the Floor Insurance Guru, House Bill 1049 was signed by Governor Ron DeSantis back in May of 2024. The law went into effect in October of the same year, making way for a shift in real estate transactions across the state.

Under the flood disclosure law, sellers of residential real estate are expected to provide a statutory flood disclosure to buyers. The goal is for buyers to be aware of potential flood risks before closing so they can make an informed decision.

At the start of the real estate transaction, sellers must present a disclosure form listing all insurance claims they have ever filed for flood damage, usually from the National Flood Insurance Program (NFIP) and/or other private flood insurance policy claims. The form must also display any instances of federal disaster assistance received due to flooding on the property, including claims from the Federal Emergency Management Agency (FEMA).

These requirements apply to all residential properties across the state, and any omissions from sellers could lead to legal liability. It's the same case for HOA's (homeowners associations) when they fail to inform potential buyers about any flooding incidents within the community.

How Do the New Flood Disclosure Requirements Affect Real Estate Transactions?

Ideally, these new laws are an added benefit to the process; buyers should take the time to do due diligence while looking into a property, and sellers should be ready to provide clear, detailed answers to the buyer's questions.

With that said, a disclosure form with the property's flood insurance claims will save time and provide essential information in a direct, organized manner. That alone does a lot to bring a new perspective. Here are other changes to consider:

• Changes in a property's market value: Many factors can increase a property's value, like its size and location. With that said, the disclosure of probable flood risks, including past instances of flooding, will likely minimize its appeal. Homeowners look for comfort and safety, so many of them will readily look for different options if they see a consistent record of floodings.


• A transparent process: This law can be a great source of comfort for homeowners since they don't have to rely solely on the seller's word to understand the risks. As a mandatory part of real estate transactions statewide, it encourages a transparent process so buyers can feel confident about their final decision.


• Increased awareness: Real estate transactions involve many steps, and buyers can get distracted with other concerns during the negotiations. Real estate agents do a lot to bring attention to potential safety risks, but having flood disclosure as a legal requirement brings a new layer of security. Buyers can fully review the disclosure form and take any structural limitations into account.

Buying a Home in Florida – What You Need To Know

All in all, the new flood disclosure requirements are an advantage for homebuyers within the state, especially with the support of an escrow company to oversee the process. The company's representative can ensure that the form is issued on time and verify that the information is presented correctly. Likewise, sellers can use the expertise of an escrow agent to understand their obligations under the flood disclosure law.

Here are some useful tips to keep in mind:

• Sellers are legally obliged to present honest, accurate information, but if you want to cover all the bases, a real estate company can check the property for flood damage during the home appraisal. Home inspectors have a trained eye to spot details that others could overlook.


• The addition of a flood disclosure form shouldn't keep you from doing your own research. You can still check the property's public records and ask direct questions to the seller and real estate agent. Sellers are expected to provide honest answers about property damage or other safety issues unrelated to floodings.
  
  More importantly, they could try to conceal previous flooding incidents if they didn't file an insurance claim or receive federal assistance during the incident.


• Look into flood insurance options, even if the property hasn't been affected by flooding at the time of the purchase. You can protect your peace of mind, and it's always better to be safe than sorry. Your real estate agent can guide you through the best options depending on your budget and the property's conditions.

Key Title & Escrow Guarantees a Smooth Process and a Successful Closing

Need assistance during the appraisal and inspections? Our specialists will put their expertise at your disposal, along with the most advanced resources to review all the property documents in a time-effective manner.

If there are delays in the issuing of the flood disclosure form, we'll move things along so you don't go into the closing without all the information. And of course, you can count on our team to evaluate the risks if your main priority is to minimize the chances of flooding in the property of your choice.

Key Title & Escrow can help you on your road to a successful closing, so you don't have to worry about any safety hazards in your new home. Don't hesitate to call (305) 235-4571 or toll-free at (800) 547-0006. Or if you prefer, you can fill out the contact form on this page so we can get back to you with the answers you need.