House Bill 1049 Requires Sellers to Disclose Flood History

House Bill 1049 Requires Sellers to Disclose Flood History

Buyers need to have as much information as possible when making a major investment, like purchasing a property. Otherwise, they may choose the wrong property or overlook critical details that would have impacted their decision.

To help buyers remain more informed during the buying process, a new law was passed in May – House Bill (H.B.) 1049. It went into effect at the beginning of October, requiring sellers to provide a flood disclosure to prospective buyers. And with the recent hurricanes hitting the west coast of Florida, there’s no better time to start requiring that disclosure.

Here’s what you need to know about the new disclosure requirements.

What Do Sellers Need to Disclose to Buyers?

For years, the concept of “caveat emptor” or “buyer beware” made buyers responsible for identifying hidden defects or issues with homes. However, after the 1985 case of Johnson v. Davis, the Florida Supreme Court ruled that sellers must disclose any known information about defects that could affect the value of a home, including hidden defects.

Now, sellers typically provide a standard disclosure form outlining information they are required to share, including things like:

• 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 feel it’s important for your decision-making. If the seller knows about it, they must disclose it.

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

With Florida’s rising sea levels and already low elevation – on average only 100 feet above sea level – more and more homes are at flood risk. As a result, it’s important for buyers to recognize the risk of flooding before purchasing a property.

According to H.B. 1049, sellers must now include:

• A statement informing the buyer that flooding 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 or not the property has experienced flooding if they didn’t have flood insurance or receive government assistance for it. So, buyers should continue to research flood zones and consider flood insurance costs when deciding whether to purchase a new property.

Get Help Navigating the Buying or Selling Process With Great Florida Homes

The legal side of buying and selling homes is ever-evolving. Staying up to date with new laws, regulations, and disclosure requirements is the last thing you want to do when finding your dream home or selling your home to take the next step in life.

Fortunately, at Great Florida Homes, we’re well-versed and current on all legal requirements, including House Bill 1049. We’ll ensure you have all the information you need to make a confident decision in your next purchase or fulfill all legal obligations as a seller.

Reach out to one of our agents to get started.