Florida Realtors Release Updated Listing Agreement and Flood Disclosure Forms

Current as of October 1, 2025

The Florida Realtors Association has recently rolled out revised versions of critical forms, including the Exclusive Right of Sale Listing Agreement (Transaction Broker version, ERS-21tb) and the Flood Disclosure form (FD-2). These updates, effective as of October 2025, reflect statutory changes and best practices aimed at enhancing transparency, protecting parties, and aligning with recent legislative mandates. Below, we delve into the specifics of these forms, highlighting the key revisions, their practical implications, and strategies for seamless implementation in your next deal.

Understanding the Updated Flood Disclosure Form (FD-2)

Florida Statute 689.302 mandates that sellers of residential real property provide a flood disclosure to purchasers at or before the execution of the sales contract. The newly revised FD-2 form, released in September 2025 and bearing a revision date of 9/2025, builds on this requirement by incorporating expanded disclosure obligations stemming from recent legislative expansions under Senate Bill 1718 and related amendments. This form is not optional; it is a statutory prerequisite for residential sales, and failure to provide it can lead to disputes, delays, or even rescission rights for buyers.

Key Elements of the FD-2 Form

The form begins with a clear statement of its purpose, noting that homeowners' insurance policies typically exclude flood damage coverage and encouraging buyers to consult their insurance agents. Sellers must complete the form by checking applicable boxes in four primary disclosure paragraphs:

Flooding History

Sellers disclose whether they have or have no knowledge of any flooding that damaged the property during their ownership. For purposes of this disclosure, "flooding" is defined comprehensively to include:

• The overflow of inland or tidal waters.
• The unusual and rapid accumulation or runoff of surface waters from any established water source, such as a river, stream, or drainage ditch.
• Sustained periods of standing water resulting from rainfall.
  

This definition ensures that even temporary or partial inundations are captured, addressing common scenarios in Florida's flood-prone areas.

Insurance Claims

Sellers must indicate if they have or have not filed a claim with an insurance provider related to flood damage, including claims under the National Flood Insurance Program (NFIP). This includes any claims, regardless of payout, to provide buyers with a full picture of potential recurring risks.

Federal Assistance

Disclosure is required for whether sellers have or have not received federal assistance for flood damage, such as from the Federal Emergency Management Agency (FEMA). This encompasses grants, loans, or other aid, which could signal prior significant events and influence buyer due diligence on flood zones.

Property Address and Signatures

The form requires the property's full address and includes spaces for up to two sellers to sign and date. It also documents how and when a copy was provided to the buyer (e.g., email, facsimile, mail, or personal delivery), creating a verifiable record.

Legislative Context and Change

These disclosures stem from Florida's 2024 legislative session, which expanded flood disclosure requirements in response to recent hurricanes and increasing flood risks. Under the amended Florida Statutes § 689.302, sellers are now obligated to reveal not just past flooding but also related claims and assistance, promoting greater buyer awareness. The form's revision aligns with these changes by adding explicit checkboxes for "has" or "has not" responses, reducing ambiguity and facilitating easier completion.

Prior versions of flood disclosures were more limited, often focusing solely on known flooding events. The updated FD-2 incorporates the broader statutory definition of flooding and mandates disclosure of remediation assistance, which can affect property valuations, insurance premiums, and buyer negotiations. For instance, if a seller has received FEMA aid, it may indicate the property is in a Special Flood Hazard Area (SFHA), prompting buyers to require flood elevation certificates or additional inspections.

Practical Implications and Best Practices

For sellers, completing the FD-2 accurately is crucial to avoid post-closing liability for nondisclosure. If a seller is unsure about past events, reviewing insurance records, property surveys, or consulting with prior owners is advisable. Sellers should provide the form as early as possible—ideally with the listing agreement—to allow buyers ample time for review.

Buyers benefit from this enhanced transparency, as it enables informed decisions on flood insurance (often required in high-risk zones) and potential mitigation measures like elevating structures or installing flood barriers. In practice, if disclosures reveal issues, buyers may negotiate repairs, price reductions, or contingencies in the sales contract.

Real estate professionals must ensure the form is executed correctly and retained in transaction files. Noncompliance could expose agents to disciplinary actions under Florida's real estate licensing laws. To mitigate risks, integrate the FD-2 into your standard listing packet and educate clients on its importance during initial consultations.

Updates to the Exclusive Right of Sale Listing Agreement (ERS-21tb)

The Exclusive Right of Sale Listing Agreement, revised in July 2025 (revision date 7/2025), grants brokers the exclusive right to sell the property while operating as transaction brokers. This form update addresses evolving MLS policies, consumer protection standards, and clarity in broker obligations, ensuring alignment with Florida's real estate statutes and NAR guidelines.

Core Provisions and Revisions

Authority and Term

The agreement authorizes the broker to sell the property at the listed price and terms, with the term extending automatically through closing upon contract execution. A key update emphasizes nondiscrimination, certifying the seller's legal entitlement to convey the property.

Property Description

Includes street address, legal description (with attachment option), personal property inclusions, and occupancy details (e.g., tenant lease expiration). No major changes here, but the form now explicitly allows for attachments to avoid omissions.

Price and Terms

Details the listing price, financing options (cash, conventional, VA, FHA, seller financing, or assumption), and seller expenses (e.g., concessions up to a specified amount). Revisions include warnings on seller financing regulations, advising consultation with legal or mortgage professionals to comply with extensive federal and state rules.

Broker Obligations

Brokers must diligently market the property, cooperate with other brokers, and enter it into the MLS within one business day (unless opted out). Updates reinforce MLS adherence and reporting of sale details.

Marketing Authority

Sellers can opt out of public marketing, including MLS listing, with acknowledgments of limited exposure. Revisions clarify virtual office websites (VOWs) and allow sellers to restrict automated valuations or third-party comments

Seller Obligations

Includes cooperation, providing keys, disclosing material facts, and indemnifying the broker. A notable update requires disclosure of any facts materially affecting value not readily observable, with space for specifics.

Changes Driven by Policy and Practice

This revision incorporates NAR's Multiple Listing Options for Sellers policy, providing checkboxes for marketing preferences and emphasizing transaction broker roles. It also addresses lockbox usage, withholding offers, and FIRPTA compliance. Compared to prior versions, the form now includes detailed warnings on assumed mortgage liability and the scope of real estate licensees' authority regarding financing.

Practical Considerations for Implementation

Sellers entering this agreement grant broad authority, so reviewing terms with counsel ensures alignment with goals. For example, opting out of MLS limits visibility but may suit privacy-focused sellers. Brokers should document all authorizations to defend against disputes.

In transactions, this form sets the stage for smooth closings by clarifying expectations. If seller financing is involved, structure it to meet Dodd-Frank and SAFE Act requirements, potentially requiring loan originator licensing.

Navigating These Updates: How to Stay Compliant and Protected

These form revisions underscore Florida's stated goal of transparency in real estate, particularly amid rising flood concerns. For sellers, proactive disclosures minimize litigation risks; for buyers, they facilitate due diligence; and for agents, they demand meticulous record-keeping.

If you're involved in a Florida real estate transaction, consulting experienced legal counsel for representation and closing (including title insurance) can help tailor these forms to your needs, draft addenda, or resolve issues arising from disclosures. At Munizzi Law Firm, we specialize in guiding clients through such updates with precision and practicality, ensuring your interests are safeguarded every step of the way. Contact us today to discuss how these changes impact your situation.

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