Hurricane Helene was the second deadliest storm in 55 years, Katrina being the first. Did we expect it? I didn’t, and I think most Florida coastal residents did not fully understand the danger of such a large storm and the biblical storm surge it brought.
There are so many moving parts involved in a real estate transaction that can go wrong, but the ultimate is when severe damage occurs when the property is under contract to sell. So who’s responsible for damaged property prior to a closing? The short answer is the seller.
Most contracts contain a “risk of loss” provision that almost always places the risk on the seller and could kill the deal. That doesn’t mean all buyers will walk away from a contract of sale, which they have the legal right to do. That said, some of the damage to properties on the Island is so severe there may not be any way back for buyers. It will be interesting to see if Manatee County proceeds with the purchase of the Seafood Shack property that was scheduled to close on Oct. 7. The building is standing, and I have not been inside, but the two very large dumpsters that are filled to the brim tells the story.
Since Anna Maria is a vacation paradise, what happens to the funds vacationers have already paid or have pending for a future booked date? All of this depends on the rental contract the renters signed, but on a small island dependent on renting vacation properties, I would be surprised if the owners and their realtors didn’t make these people whole.
As always, an attorney should be consulted to review your sale contract or your rental agreement if you find yourself in one of these two situations after the storm.
By now hopefully everyone with property damage has contacted their insurer and got the ball rolling for compensation. It will be a long, arduous process in addition to the emotional aspect of the storm not to mention the clean-up.
However, there will be properties that cannot be restored, and the danger of properties being condemned is certainly possible. My FEMA research tells me that FEMA does not have the legal authority to condemn or demolish houses or buildings. They can provide contractors to inspect disaster-related damage to homes and property, but they do not condemn property. Local jurisdictions have the legal authority to condemn your property, which is a complicated process. FEMA’s website on condemning property will give you more detailed information.
Unfortunately, in Florida, if your property is condemned, you will still need to repay your mortgage. If your property is condemned, you likely will receive a condemnation payment to help pay off the loan or you can work with your lender for a loan modification or forbearance.
Finally, as fate will have it, a new Florida law was enacted on May 30 this year requiring sellers to disclose if a property has filed insurance claims for flood damage and whether federal assistance has been granted due to flooding.
My husband and I live on the Intracoastal Waterway in Cortez and have never in 25 years seen water under our building – this time there was 4 feet. We didn’t evacuate and considered not even moving our car since with Idalia last year there was no water intrusion. Thankfully we were safe, our car was moved to higher ground and survived but it does give you pause when you see the destruction surrounding you.
We’ll talk more next week about how this phenomenon affects property values if at all and the overwhelming desire of humans to live near the water.
