Florida Governor Ron DeSantis has signed a new bill aimed at improving transparency in real estate transactions within the state. Known as the HB 1049 law, this new regulation is designed to protect buyers from potential scams involving properties affected by natural disasters, particularly floods.
Florida frequently faces hurricanes and other natural disasters, making real estate purchases in the region require extra caution. This year is expected to be one of the most active hurricane seasons. The governor recently addressed how his administration is preparing with legal tools to tackle potential fraud related to natural disasters.
The new law will go into effect on October 1. Sellers will be required to present a flood disclosure document, indicating whether the property has been involved in insurance claims related to flood damage or if the owners have received federal assistance for that reason. The measure aims to prevent real estate fraud, as it has been found that some sellers are not honest about the damage their properties have suffered due to flooding in the region.
Enhanced Transparency and Safety in Real Estate Transactions
In addition to specifying the history of natural disasters, the report must detail whether these represent a current threat to the property. Interested buyers will be able to know if homeowners' insurance covers flood damage or, if not, they will need to acquire additional coverage.
This change represents a significant advantage for those looking to purchase a home in Florida. Until now, many buyers had difficulty accessing official flood records of properties, which could lead to disadvantageous or misleading transactions.
Sellers will need to be transparent regarding flood damage to a house, as per the CS/CS/HB 1049: Flood Disclosure in Real Estate Sales. This bill has been promoted by the Judiciary Committee, the Regulatory Reform and Economic Development Subcommittee, and several co-sponsors, including Representatives Hunschofsky, Arrington, Cassel, Chaney, Cruz, López J., López V., Lunay, Nixon, Valdés, and Woodson.
With this law coming into effect, the real estate market in Florida is expected to be more transparent and safer for all interested in acquiring properties in the Sunshine State.
Frequently Asked Questions About HB 1049 and Real Estate in Florida
The new HB 1049 law introduces significant changes for real estate transactions in Florida. Here are some common questions and answers that can help both buyers and sellers understand the implications.
What is HB 1049?
HB 1049 is a new law in Florida that requires sellers to disclose information about any flood-related damage to the property, including insurance claims and federal assistance received.
When does the new law go into effect?
The new law will take effect on October 1.
How does HB 1049 benefit homebuyers?
HB 1049 provides homebuyers with detailed information about any flood-related damage to properties, making real estate transactions more transparent and reducing the risk of fraud.
What information must sellers disclose under HB 1049?
Sellers must disclose any history of flood damage, insurance claims related to floods, and whether they have received federal assistance for flood damage. They must also indicate if the property is currently at risk of flooding.