Business and Legal Insights

Flood risk has always been a key due diligence issue in Florida real estate. However, recent statutory changes have made flood disclosure an increasingly important transaction and project management issue for developers, builders, landlords, and other residential real estate stakeholders.

In 2024, Florida adopted a flood disclosure requirement for sellers of residential real property. Section 689.302, Florida Statutes, requires a seller to provide a written flood disclosure to a purchaser at or before the time the sales contract is executed. The disclosure addresses whether the seller has knowledge of flooding that damaged the property during the seller’s ownership, whether the seller filed an insurance claim for flood damage, and whether the seller received assistance for flood damage.

The Legislature expanded the framework in 2025. Effective October 1, 2025, Senate Bill 948 added or revised flood disclosure obligations for residential landlords, condominium developers, cooperative developers, and mobile home park owners. For example, residential landlords must provide a separate flood disclosure to prospective tenants before execution of a residential rental agreement for a term of one year or longer. Condominium and cooperative developers must include flood disclosure language in the applicable contract for sale or long-term lease. Mobile home park owners must also provide a flood disclosure to prospective lessees of mobile home lots.

One of the most important points for developers is the breadth of the statutory definition of “flooding.” The disclosure framework is not limited to coastal storm surge or property located within a FEMA-designated flood zone. It includes a general or temporary condition of partial or complete inundation caused by overflow of inland or tidal waters, unusual and rapid accumulation of runoff or surface waters from an established source such as a river, stream, or drainage ditch, or sustained periods of standing water resulting from rainfall.

That definition matters in the development context. A property may not appear to present a traditional “flood zone” issue but may still have a history of stormwater, drainage, standing water, or off-site runoff conditions that should be evaluated before acquisition, permitting, vertical construction, leasing, or sale. Developers should consider flood disclosure as part of a broader diligence and risk-management process, rather than as a form to be addressed at closing.

Recent 2026 developments reinforce that point. Chapter 2026-63, Laws of Florida, addresses building permits and inspections and includes provisions relating to temporary residential hurricane and flood protection walls or barriers. Separately, the Florida Division of Emergency Management issued January 2026 guidance explaining that temporary flood barriers for residential buildings do not satisfy Florida Building Code or National Flood Insurance Program compliance requirements for new construction, substantial improvement, or repair of substantial damage. The 9th Edition of the Florida Building Code is also proceeding through the 2026 code development process, with an expected effective date at the end of 2026. These updates do not replace the flood disclosure statutes, but they underscore that flood risk, flood mitigation, permitting, and code compliance remain active issues for Florida projects.

Practically, developers should consider several steps. Acquisition diligence should include review of FEMA flood maps, local floodplain ordinances, stormwater reports, drainage easements, prior elevation certificates, site grading, historic flood claims, prior governmental assistance, and known flooding or standing water conditions. For projects involving common areas, stormwater ponds, drainage tracts, or condominium/cooperative property, the analysis should also consider whether flood-related conditions affect common elements or shared infrastructure.

Developers should also review transaction documents and internal procedures. Residential purchase contracts, condominium and cooperative contracts, lease forms, mobile home park documents, and sales procedures should be updated to include any required flood disclosure language at the correct time. Project teams should maintain organized records of floodplain determinations, drainage approvals, claims information, mitigation measures, and communications regarding flood-related site conditions.

The expanded flood disclosure framework does not eliminate the need for buyers and tenants to conduct their own investigation, evaluate insurance options, or consult appropriate professionals. However, it does create additional disclosure and documentation considerations for residential projects in Florida. Addressing those issues early can help developers reduce transaction risk, avoid inconsistent disclosures, and better manage buyer, tenant, lender, and governmental expectations.

Shutts remains available to assist developers, builders, landlords, and real estate stakeholders with flood disclosure compliance, floodplain due diligence, entitlement strategy, and development-related risk management in Florida.

Sources Reviewed

• CS/CS/HB 1049 (2024), Ch. 2024-215, Laws of Florida, Flood Disclosure in the Sale of Real Property.
• Section 689.302, Florida Statutes, Disclosure of flood risks to prospective purchaser.
• CS/CS/SB 948 (2025), Ch. 2025-166, Laws of Florida, Flood Disclosures.
• Section 83.512, Florida Statutes, Disclosure of flood risks to prospective tenant of residential real property.
• Section 718.503, Florida Statutes, Developer disclosure prior to sale; nondeveloper unit owner disclosure prior to sale; voidability.
• Section 719.503, Florida Statutes, Disclosure prior to sale.
• Section 723.011, Florida Statutes, Disclosure prior to rental of mobile home lot; prospectus, filing, approval.
• Section 553.73, Florida Statutes, Florida Building Code.
• CS/CS/HB 803 (2026), Ch. 2026-63, Laws of Florida, Building Permits and Inspections.
• Florida Division of Emergency Management, Office of Floodplain Management Guidance: Temporary Flood Barriers for Residential Buildings, January 2026.
• Florida Building Commission, 9th Edition (2026) Florida Building Code development materials.

*The primary sources to note are: the 2024 bill page for HB 1049/Ch. 2024-215, the current statute for § 689.302, the 2025 bill page for SB 948/Ch. 2025-166, the current statutes for §§ 83.512, 718.503, 719.503, and 723.011, and the 2026 materials for HB 803/Ch. 2026-63 and FDEM’s temporary flood barrier guidance.