Selling a Florida Home With Water Damage or Mold

In Florida, a seller who knows of facts that materially affect a home's value, and that a buyer cannot readily see, has a duty to tell the buyer. Past water damage or mold can fall into that group. Sellers should keep repair and claim records, buyers should ask for them, and a Florida real estate attorney can say what applies to a specific sale.

The Florida rule: sellers must disclose known facts a buyer cannot see

Florida's general disclosure duty for homes comes from a court decision. In Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), the Florida Supreme Court held that where the seller of a home knows of facts materially affecting the value of the property that are not readily observable and are not known to the buyer, the seller must disclose them. The case involved roof leaks the buyers found after heavy rain, following the sellers' statements that there were no problems with the roof. This summary follows the way the holding is quoted in a Florida Bar Journal article.

Water damage and mold can fit that description. A past leak behind a wall or under a floor may not be visible at a showing, and it may affect value. Whether a particular event meets the test is a legal question for a Florida real estate attorney, not something a restoration referral service can decide.

Flood history has its own statute

Section 689.302, Florida Statutes, requires a seller of residential property to complete and give the buyer a flood disclosure at or before the time the sales contract is signed. The form asks whether the seller knows of flooding that damaged the property during their ownership, whether they filed an insurance claim for flood damage (including a National Flood Insurance Program claim), and whether they received assistance for flood damage, including from FEMA. The statute defines "flooding" as a general or temporary condition of partial or complete inundation of the property from overflow of inland or tidal waters, unusual and rapid accumulation of runoff or surface water from an established source, or sustained standing water from rainfall.

That definition is narrower than "water damage." A burst pipe, a failed water heater or a roof leak is not obviously "flooding" under it. Those events can still fall under the general Johnson v. Davis duty. Do not assume the flood form is the only disclosure owed.

Mold and who does the work

A prior mold problem that a buyer could not readily see is the kind of fact the general duty can reach; ask an attorney how it applies to your sale. Florida regulates mold work itself. Under s. 468.8411, mold assessment and mold remediation are defined for growth of more than 10 square feet, and a mold assessor performs the assessment. For a seller, a report from a qualified assessor and a remediation record from a licensed remediator show what was found and what was done. You can check a license on the state license search before relying on a document. See Florida mold law.

Keep the paper trail while you own the home

A seller asked "was there ever water damage or mold?" is better off with documents than memory. Keep, in one folder: dated photos and notes from when the problem was found; the plumber's, roofer's or other repair invoice that fixed the source; the restoration company's estimate, drying logs and final invoice; any mold assessment or post-remediation report; insurance claim paperwork, including the claim number, adjuster letters, payment letters and any denial; and permits and the contractor's name for any rebuild work.

Claim records also matter for your own policy. Under s. 627.70132, notice of an initial or reopened claim is due within 1 year after the date of loss and notice of a supplemental claim within 18 months after the date of loss, or the claim is barred. EPA says it is important to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth, so a drying log that shows when the work started is useful to a later buyer.

What a buyer should ask

A buyer cannot rely on what looks fine at a showing. EPA notes that you may suspect hidden mold if a building smells moldy but you cannot see the source. Questions worth putting in writing to the seller, through your agent: 1. Has the home ever had a leak, flood or water intrusion, and where? 2. Was there ever mold, and was it assessed or removed? Can I see the report? 3. Was an insurance claim made, and for what? 4. Who did the repairs, and are the invoices and any permits available? 5. Has the source of the water been fixed, and is there paperwork showing it? 6. Is there anything else you know that affects value and is not obvious on a visit?

Consider an inspection before you are committed to the purchase, and ask your insurance agent whether past claims could affect coverage or price. Your attorney can tell you how long you have to act under your contract.

If you are selling a home that needs work first

If the damage is current, the sequence is: make it safe, stop the water, dry it, then repair. Call or text CFDR at 321-420-7274 and Ryan Solberg matches you with a restoration company, who handles the drying and mold work while the sale paperwork stays with you, your agent and your attorney. CFDR is a referral service, not a contractor and not FEMA, and the homeowner pays CFDR nothing. Ask the matched company for its arrival time and an itemized estimate, and for a written completion record you can keep for the sale. See also water damage while a house is for sale and handing a client to CFDR.

Frequently asked questions

Does "as is" mean a seller does not have to disclose water damage? Do not assume so. The duty in Johnson v. Davis is a duty to tell a buyer about known facts that materially affect value and are not readily observable. Whether contract language changes that is a question for a Florida real estate attorney.

Is there a Florida form for flood history? Yes. Section 689.302 requires a seller of residential property to complete and give the buyer a flood disclosure at or before the time the contract is signed.

What should I keep after a water or mold repair? Photos, repair and restoration invoices, drying logs, any mold assessment or post-remediation report, insurance claim letters and payments, and permits.

Can CFDR tell me what I must disclose? No. CFDR is a restoration referral service, not a law firm or a real estate brokerage. A Florida real estate attorney can advise on your sale. This post is not legal advice.