Florida Sinkhole Disclosure Law: What Sellers Must Tell You
What Florida law requires a seller to disclose about a sinkhole — the paid-claim rule under Fla. Stat. § 627.7073, the Johnson v. Davis duty, why paid claims become public record, and how "catastrophic ground cover collapse" differs from "sinkhole loss" coverage.
Updated July 12, 2026 · 7 min read
Quick answer
Two overlapping duties
- The statutory duty (§ 627.7073). Narrow and specific: it attaches when a sinkhole claim was made and paid. The seller must tell the buyer the claim was paid and whether the money went into the repair.
- The common-law duty (Johnson v. Davis, Fla. 1985). Broad: a seller of residential property must disclose facts they know materially affect the value of the property and that a buyer could not readily observe. This one bites even when no claim was ever filed — known ground movement, unexplained cracking, a neighbor’s collapse.
The practical upshot for an investor: “no insurance claim” is not the same as “no sinkhole.” Ask directly, in writing, and get the answer in writing.
Paid claims become public record
This is the part most buyers don’t know, and it’s the most useful to you. When a sinkhole claim is confirmed and paid, the sinkhole report is filed with the county clerk and recorded in the official records. It attaches to the property and follows it — a permanent, searchable mark on the title history.
So you do not have to take the seller’s word for it. Search the Hillsborough County Clerk’s Official Records against the parcel before you go hard on a contract. A seller who “forgot” to mention a paid claim will be contradicted by the record.
“Catastrophic ground cover collapse” vs. “sinkhole loss”
These two phrases sound interchangeable and are not. Confusing them is the single most expensive mistake in this space.
Catastrophic ground cover collapse (CGCC) — mandatory, and nearly useless
Every Florida property policy must include it. But it only pays when all four of these are met:
- An abrupt collapse of the ground cover;
- A depression clearly visible to the naked eye;
- Structural damage to the building, including the foundation;
- The building is condemned and ordered vacated by the governmental authority.
Miss any one and CGCC pays nothing. A house slowly cracking apart over a growing void — damaged, but not condemned — fails the test. Most real sinkhole damage fails this test.
Sinkhole loss coverage — optional, and the one that matters
Broader coverage for structural damage caused by sinkhole activity. It is optional, sold by endorsement for additional premium, and the insurer may require an inspection before writing it. If the seller says “it’s covered,” find out which of these two they mean. It is usually the useless one.
The two-year claim deadline
A sinkhole claim must generally be brought within two years of when the policyholder knew or reasonably should have known about the loss. For a buyer this cuts both ways: it limits how long a prior owner could have filed, and it starts a clock on you the moment you become aware of a problem after closing. Don’t sit on cracking.
If you’re the seller
Disclose. The report is recorded, the claim file exists, and the buyer’s engineer will find the repair. Non-disclosure in Florida is not a technicality — it exposes you to rescission and damages long after the closing, and it is a far more expensive problem than the discount you were trying to avoid.
If your property has an unrepaired sinkhole and you want out without the repair, an as-is cash sale to an investor who prices it correctly is usually the cleanest path — and increasingly what these owners choose.
Next
Buying a House With a Sinkhole in Florida covers the underwriting — repair cost, insurance, and how to price the discount. Sinkhole Risk in Hillsborough County explains the geology and incident data behind the risk.
This guide is general information for real estate investors and property owners, not legal, tax, or financial advice. Court procedures, fees, and statutes change — verify current details with the Hillsborough County Clerk of Circuit Court or a licensed Florida attorney before acting.
Frequently asked questions
Does a seller have to disclose a sinkhole in Florida?
Yes. Under Fla. Stat. § 627.7073 a seller who made a sinkhole claim that the insurer paid must disclose that to the buyer, including whether the full proceeds were actually used to repair the damage. Separately, Florida common law (Johnson v. Davis) requires a residential seller to disclose any known defect that materially affects value and is not readily observable — which covers a known sinkhole even when no claim was ever filed.
Are Florida sinkhole reports public record?
Yes. When a sinkhole claim is confirmed and paid, the sinkhole report is filed with the county clerk and recorded in the official records. It attaches to the property and follows it permanently, so a buyer can verify a seller’s disclosure against the record rather than taking their word for it.
What is the difference between catastrophic ground cover collapse and sinkhole loss coverage?
Catastrophic ground cover collapse (CGCC) is mandatory in every Florida property policy but pays only when all four conditions are met: an abrupt collapse of the ground cover, a depression clearly visible to the naked eye, structural damage to the building including the foundation, and the building being condemned and ordered vacated. Most real sinkhole damage fails that test. Broader "sinkhole loss" coverage is optional, sold by endorsement for extra premium, and is the one that actually matters.
How long do you have to file a sinkhole claim in Florida?
Generally two years from when the policyholder knew or reasonably should have known about the sinkhole loss. For a buyer this cuts both ways — it limits how long a prior owner could have filed, and it starts a clock on you the moment you become aware of a problem after closing.