What to Disclose When Selling in Barrier Islands?
What You Must Disclose When Selling Property in Florida’s Barrier Islands
Quick Answer
Sellers in Florida’s barrier islands are legally required to disclose all known facts that materially affect the value of the property and are not readily observable to buyers, as established by Johnson v. Davis and enforced under Florida Statute 718 for condos. This includes issues like prior flood damage, roof leaks, seawall problems, pending code enforcement liens, and any HOA or special assessments. Flood disclosure (FD-1) is mandatory at or before contract execution, and failure to disclose can lead to contract termination, lost deposits, or post-closing lawsuits. For example, failing to disclose a known structural issue in a condo can result in a buyer backing out and the seller losing thousands in deposits and repairs. If buyers discover undisclosed problems after closing, sellers and even their agents can be held liable for damages. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
The #1 Risk: Failing to Disclose Known Material Defects
Sellers must disclose any known defects that materially affect property value and are not obvious to buyers, per Johnson v. Davis and Florida Statute 718 for condos. In barrier islands, this often means flood damage, roof leaks, seawall erosion, or mold from prior storms. I’ve seen deals collapse when a buyer’s inspection uncovered a previously repaired but undisclosed flood event – the buyer walked, the seller lost a $25,000 deposit, and the property sat on the market for months. If you try to hide these issues, you risk lawsuits and forced contract rescission.
When my husband Mike and I bought our condo at Seaplace212 in 2018, we were fortunate that we had the Renick Team on our side. Eric & Mike are very Professional and honest with full disclosure. I am a licensed Real Estate agent in Florida. I feel comfortable referring my clients to Eric and Mike. I know that they will receive competent representation.
– Marge Nuzzo, Google Review
The #2 Risk: Missing or Incomplete Flood and Insurance Disclosures
Flood disclosure (FD-1) is required by Florida law at or before contract execution, and insurance requirements are stricter on barrier islands due to high flood and storm risk. If you fail to disclose previous flood claims or insurance denials, buyers may not be able to obtain coverage, which can kill financing and delay or terminate the sale. I’ve watched a deal fall apart two days before closing when the buyer’s lender discovered a prior flood claim that was not disclosed – the buyer’s rate tripled, and the contract was canceled.
The #3 Risk: Not Revealing Pending Code Enforcement or HOA Assessments
Pending code enforcement liens and undisclosed HOA or condo assessments are common deal killers in barrier islands, where coastal regulations are strict and associations often levy special assessments for repairs. Florida Realtors and local municipalities require disclosure of these items, and failure to do so can result in buyer withdrawal or forced renegotiation. I once had a seller who didn’t disclose a $15,000 upcoming seawall assessment – the buyer‘s attorney caught it during estoppel review, and the seller had to pay the full amount to keep the deal alive.
How to Protect Yourself Before You Commit
- Use the Florida Realtors Disclosure Form: Complete every section honestly, marking ‘unknown’ only if you truly lack knowledge.
- Order a Pre-Listing Inspection: Identify hidden issues like roof leaks or seawall erosion before listing.
- Request an Estoppel Certificate Early: For condos/HOAs, get this up front to reveal assessments, restrictions, and violations.
- Gather Flood and Insurance Records: Provide buyers with prior flood claims, insurance policies, and any denials or rate hikes.
- Check for Code Enforcement Liens: Run a search with the local municipality to ensure no outstanding violations exist.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
Call 941.400.8735 or Schedule a Call
What a Local Agent Catches That You Won’t See in the Listing
In barrier island transactions, I’ve caught seawall issues that weren’t disclosed but were visible on county records – saving a buyer from a $40,000 repair. In another case, I flagged an unrecorded HOA assessment that would have blindsided the buyer at closing. Local knowledge of flood zones, insurance carrier requirements, and association rules is critical here; out-of-area agents often miss these details, leading to costly surprises for both sides.
Questions Clients Actually Ask
Do I have to disclose past flood damage if it was repaired?
Yes, you must disclose any known flood damage, even if repaired, because it materially affects value and future insurability. Marking ‘unknown’ is only allowed if you genuinely have no knowledge.
What if I don’t know about a defect – am I still liable?
If you truly don’t know, you are not liable for failing to disclose, but if you had reason to know (like prior repairs or insurance claims), you must disclose. Agents and brokers can also be held liable if they are aware and fail to inform buyers.
Are deaths or crimes on the property required to be disclosed?
No, Florida law does not require disclosure of deaths, suicides, homicides, or HIV/AIDS cases on the property, nor off-site conditions discoverable in public records.
What To Do Right Now
Request a full estoppel certificate and gather all flood and insurance records before listing – this is where most sellers get tripped up in barrier islands.
Team Renick provided great service when we used their expertise to purchase our condo at Seaplace. We could not have asked for better service, and professionalism throughout our experience. They were always available to answer questions and guide us through the maze of our real estate transaction. Seamless and wonderful personal service was provided by Mike and Eric. We could not imagine using anyone else for the sale or purchase of a property on Longboat key.
– Paul Gold, Google Review
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Michael Renick · Licensed Florida Real Estate Broker
License #BK3241900 · Verify on Florida DBPR
Mangrove Realty Associates Inc / Team Renick · Serving Sarasota & Manatee Counties since 2011
About the Author
I’m Michael Renick — a Florida West Coast broker with over 15 years guiding families through some of the biggest decisions of their lives. I’ve built my practice on hard work, honesty, and total transparency. No shortcuts, no spin — just straight answers, deep market knowledge, and the dedication my clients deserve from start to close.
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To read more insights: blog.teamrenick.com
