What is the Florida sinkhole disclosure law?

Florida sinkhole disclosure law lives in two statutes that every Orlando-area homeowner and seller should understand: Florida Statutes section 627.706 governs sinkhole insurance and catastrophic-ground-cover-collapse coverage, and section 689.261 governs property-condition disclosures during sale. Together they require that any prior sinkhole-insurance claim, any documented sinkhole activity on the parcel, and any neutralization or stabilization work be disclosed in writing to a buyer before contract.

Why this matters specifically in Orlando: Central Florida sits on a karst limestone substrate that is particularly active across north-central Orange, all of Seminole, most of Lake, and pockets of west Volusia. The Florida Geological Survey has mapped sinkhole-incident clusters along the I-4 corridor between Orlando and Lakeland, with notable concentrations near Apopka, Casselberry, Winter Springs, Lake Mary, and the western edge of Sanford. In those zones, the question is not whether a parcel has karst exposure but how active it is.

For remodel work, the law does not require disclosure on its own, but three connected practices have become standard. First, any addition, vertical expansion, or pool excavation in a known sinkhole-cluster neighborhood is preceded by a geotechnical investigation with two to four soil borings and a written report from a Florida-licensed geotechnical engineer. Cost runs $1,800 to $4,500 depending on access and depth. Second, deep-foundation work, helical piers, or any ground stabilization triggers an engineered foundation design that the city or county building official will require before permit issuance. Third, any prior sinkhole claim attached to the parcel will surface in the title search and the seller disclosure, and lenders and insurers will price the property accordingly.

If your home was previously stabilized by a sinkhole-insurance claim, that file is part of the permanent record. Most Florida carriers will not write a new policy on a previously stabilized property, which pushes those homes onto Citizens or surplus-lines markets. That, in turn, affects resale and lender willingness, which is why pre-renovation due diligence is much more than a code-compliance exercise in Central Florida.

Want Baily to walk through what your specific neighborhood looks like on the karst-activity map and whether your remodel scope warrants a geotech report before you spend on design?