Florida Senate - 2020                                    SB 1842
       
       
        
       By Senator Powell
       
       
       
       
       
       30-01671-20                                           20201842__
    1                        A bill to be entitled                      
    2         An act relating to residential property disclosures;
    3         amending s. 689.261, F.S.; requiring that certain
    4         disclosures relating to flood events be provided to a
    5         purchaser of residential property; providing
    6         requirements for such disclosures; defining terms;
    7         providing an effective date.
    8          
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Section 689.261, Florida Statutes, is amended to
   12  read:
   13         689.261 Sale of residential property; disclosures
   14  disclosure of ad valorem taxes to prospective purchaser.—
   15         (1) A prospective purchaser of residential property must be
   16  presented a disclosure summary at or before execution of the
   17  contract for sale. Unless a substantially similar disclosure
   18  summary is included in the contract for sale, a separate
   19  disclosure summary must be attached to the contract for sale.
   20  Unless included in the contract for sale, the disclosure summary
   21  must be provided by the seller. If the disclosure summary is not
   22  included in the contract for sale, the contract for sale must
   23  refer to and incorporate by reference the disclosure summary and
   24  include, in prominent language, a statement that the potential
   25  purchaser should not execute the contract until he or she has
   26  read the disclosure summary required by this section.
   27         (2) The disclosure summary, whether separate or included in
   28  the contract, must include disclosures relating to property
   29  taxes and flood events and must be in a form substantially
   30  similar to the following:
   31                          PROPERTY TAX AND                         
   32           FLOODPLAIN, FLOOD POOL, FLOODWAY, OR RESERVOIR          
   33                            PROPERTY TAX                           
   34                         DISCLOSURE SUMMARY                        
   35  BUYER SHOULD NOT RELY ON THE SELLER’S CURRENT PROPERTY TAXES AS
   36  THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO
   37  PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR
   38  PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY
   39  THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY
   40  QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY
   41  APPRAISER’S OFFICE FOR INFORMATION.
   42  
   43  1.ARE YOU (SELLER) AWARE OF ANY OF THE FOLLOWING CONDITIONS?
   44  WRITE YES (Y) IF YOU ARE AWARE, NO (N) IF YOU ARE NOT AWARE, OR
   45  DO NOT KNOW (DK) IF YOU ARE NOT SURE.
   46  
   47  .... PRESENT FLOOD INSURANCE COVERAGE.
   48  .... PREVIOUS FLOODING DUE TO A FAILURE OR BREACH OF A RESERVOIR
   49  OR A CONTROLLED OR EMERGENCY RELEASE OF WATER FROM A RESERVOIR.
   50  .... PREVIOUS WATER PENETRATION INTO A STRUCTURE ON THE PROPERTY
   51  DUE TO A NATURAL FLOOD EVENT.
   52  PROPERTY IS LOCATED .... WHOLLY .... PARTLY IN A 100-YEAR
   53  FLOODPLAIN.
   54  PROPERTY IS LOCATED .... WHOLLY .... PARTLY IN A 500-YEAR
   55  FLOODPLAIN.
   56  PROPERTY IS LOCATED .... WHOLLY .... PARTLY IN A FLOODWAY.
   57  PROPERTY IS LOCATED .... WHOLLY .... PARTLY IN A FLOOD POOL.
   58  PROPERTY IS LOCATED .... WHOLLY .... PARTLY IN A RESERVOIR.
   59  IF THE ANSWER TO ANY OF THE ABOVE IS “YES,” PLEASE EXPLAIN
   60  (ATTACH ADDITIONAL SHEETS AS NECESSARY):
   61  
   62  2.HAVE YOU (SELLER) EVER FILED A CLAIM FOR FLOOD DAMAGE TO THE
   63  PROPERTY WITH ANY INSURANCE PROVIDER, INCLUDING THE NATIONAL
   64  FLOOD INSURANCE PROGRAM? .... YES .... NO
   65  IF THE ANSWER IS “YES,” PLEASE EXPLAIN (ATTACH ADDITIONAL SHEETS
   66  AS NECESSARY):
   67  
   68  3.HAVE YOU (SELLER) EVER RECEIVED ASSISTANCE FROM THE FEDERAL
   69  EMERGENCY MANAGEMENT AGENCY (FEMA) OR THE UNITED STATES SMALL
   70  BUSINESS ADMINISTRATION (SBA) FOR FLOOD DAMAGE TO THE PROPERTY?
   71  .... YES .... NO
   72  IF THE ANSWER IS “YES,” PLEASE EXPLAIN (ATTACH ADDITIONAL SHEETS
   73  AS NECESSARY):
   74  
   75  WARNING: HOMES IN HIGH-RISK FLOOD ZONES WITH MORTGAGES FROM
   76  FEDERALLY REGULATED OR INSURED LENDERS ARE REQUIRED TO HAVE
   77  FLOOD INSURANCE. EVEN WHEN NOT REQUIRED, FEMA ENCOURAGES
   78  HOMEOWNERS IN HIGH-RISK, MODERATE-RISK, AND LOW-RISK FLOOD ZONES
   79  TO PURCHASE FLOOD INSURANCE THAT COVERS THE STRUCTURE(S) AND THE
   80  PERSONAL PROPERTY WITHIN THE STRUCTURE(S).
   81  
   82  ...(PURCHASER’S INITIALS)...
   83  
   84         (3)For purposes of this section, the term:
   85         (a)“100-year floodplain” means any area of land that:
   86         1.Is identified on the Flood Insurance Rate Map as a
   87  special flood hazard area, which is designated on the map as
   88  Zone A, V, A99, AE, AO, AH, VE, or AR.
   89         2.Has a 1 percent annual chance of flooding, which is
   90  considered a high risk of flooding.
   91         3.May include a regulatory floodway, flood pool, or
   92  reservoir.
   93         (b)“500-year floodplain” means any area of land that:
   94         1.Is identified on the Flood Insurance Rate Map as a
   95  moderate flood hazard area, which is designated on the map as
   96  Zone B or X (shaded).
   97         2.Has a 0.2 percent annual chance of flooding, which is
   98  considered a moderate risk of flooding.
   99         (c)“Flood Insurance Rate Map” means the current flood
  100  hazard area map published by the Federal Emergency Management
  101  Agency under the National Flood Insurance Act of 1968, 42 U.S.C.
  102  s. 4001 et seq.
  103         (d)“Flood pool” means the area adjacent to a reservoir
  104  that lies above the normal maximum operating level of the
  105  reservoir and that is subject to controlled inundation under the
  106  management of the United States Army Corps of Engineers.
  107         (e)“Floodway” means an area that is identified on the
  108  Flood Insurance Rate Map as a regulatory floodway, which
  109  includes the channel of a river or other watercourse and the
  110  adjacent land areas that must be reserved for the discharge of a
  111  base flood, also referred to as a 100-year flood, without
  112  cumulatively increasing the water surface elevation more than a
  113  designated height.
  114         (f)“Reservoir” means a water impoundment project operated
  115  by the United States Army Corps of Engineers that is intended to
  116  retain water or delay the runoff of water in a designated
  117  surface area of land.
  118         (2)Unless included in the contract, the disclosure summary
  119  must be provided by the seller. If the disclosure summary is not
  120  included in the contract for sale, the contract for sale must
  121  refer to and incorporate by reference the disclosure summary and
  122  include, in prominent language, a statement that the potential
  123  purchaser should not execute the contract until he or she has
  124  read the disclosure summary required by this section.
  125         Section 2. This act shall take effect July 1, 2020.