If you are selling a Florida house that once had a sinkhole claim, you must tell the buyer before closing that the claim was paid and whether all of the money was used to repair the damage. That rule is in state law. Beyond it, Florida sellers must disclose known problems that materially affect value and that a buyer cannot easily see.
Buyers usually piece a sinkhole history together from two records: the building permit history and the engineering report. Here is the difference, what gets recorded, and what a cash buyer actually checks.
What counts as a “sinkhole” under Florida insurance law?
Florida’s insurance code separates two things (Fla. Stat. § 627.706):
- Catastrophic ground cover collapse. The ground collapses abruptly, there is a depression you can see with the naked eye, the building (including the foundation) has structural damage, and a government agency condemns the building and orders it vacated. All four must happen. Every insurer that writes property insurance in Florida must cover this.
- Sinkhole loss. Structural damage to the building, including the foundation, caused by sinkhole activity, meaning settlement or weakening of the ground from soil or rock moving into underground voids in limestone or similar rock. Insurers must make this coverage available, but for an extra premium. Many homeowners never buy it.
“Structural damage” has its own legal definition, such as foundation movement affecting the main structural parts of the house, or leaning or buckling walls.
What does a Florida seller have to disclose about a sinkhole?
There are two layers.
The statute. If you made a sinkhole claim and your insurer paid it, you must disclose to the buyer, before closing, that a claim was paid and whether or not the full amount was used to repair the sinkhole damage (Fla. Stat. § 627.7073(2)(c)).
Case law. In Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), the Florida Supreme Court held that when 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. Known foundation movement, an engineer’s report finding sinkhole activity, or an unrepaired sinkhole can fall into that category even if no insurance claim was ever paid. Florida appeals courts have said an “as is” contract does not erase this duty (The Florida Bar Journal).
Is a sinkhole report recorded in public records?
Often, yes. After an insurer pays a sinkhole claim, it must file a copy of the engineer’s or geologist’s report and certification with the county clerk of court for recording in the official records. The filing includes the property’s legal description, the owner’s name, any neutral evaluator’s report, any certification that stabilization was completed, and the amount of the payment (Fla. Stat. § 627.7073(2)(a)).
The homeowner has a filing duty too. Before accepting payment for a sinkhole loss, the policyholder must file any sinkhole report prepared for them, such as a report from their own engineer (Fla. Stat. § 627.7073(2)(b)). And once repairs are done, the engineer who monitored them issues a report certifying the work and files it with the clerk for recording (Fla. Stat. § 627.7073(3)).
The statute also says recording the report is not a lien, encumbrance or restriction on the title, and is not a title defect. In practice, though, anyone who searches the clerk’s official records under your name or legal description may find it. Assume a careful buyer will.
If the insurer and homeowner disagree about a sinkhole claim, either side can request nonbinding neutral evaluation through the Florida Department of Financial Services, paid for by the insurer (Fla. Stat. § 627.7074).
Permit history vs. geotechnical report: what is the difference?
These two records answer different questions, and buyers often confuse them.
Permit history: what work was done
Your county or city building department keeps a record of permits pulled on the property. For a sinkhole or foundation problem, you might see permits for foundation repair, stabilization, grouting or underpinning, along with inspection results and whether the permit was closed out. Many counties let you search online by address. Hernando County, for example, has a permit and property search portal where you can look up a property’s permit history.
A permit record shows that work was approved and inspected. It does not show why the ground moved or how much the repair cost. An open or expired permit can also hold up a closing.
Geotechnical or engineering report: why it happened
A sinkhole report under Florida law is prepared by a professional engineer or professional geologist after testing. If the report verifies a sinkhole loss, it must say that structural damage exists and that sinkhole activity caused it within a reasonable professional probability, describe the testing, and recommend how to stabilize the land and repair the foundation. If it does not verify a sinkhole loss, it must say so and identify the cause of the damage it found (Fla. Stat. § 627.7073(1)).
Put simply: the engineering report is the diagnosis, and the permit history is the record of treatment. A buyer wants both, plus the engineer’s completion certification if repairs were made.
What about the state’s sinkhole database?
The Florida Geological Survey, part of the Florida Department of Environmental Protection, keeps a statewide database of subsidence incident reports with a public map. It is useful for seeing whether ground settling has been reported nearby. But the agency warns that most incidents have not been field-checked, the cause is usually not verified, and reporting is voluntary (FGS data limitations). A dot on the map does not mean a sinkhole, and no dot does not mean no sinkhole.
No state agency inspects homes for sinkholes. If settling affects a home, the Florida Geological Survey suggests testing by a licensed engineering firm with a professional geologist on staff, or a professional geology firm (FGS Sinkhole FAQ).
What does a cash buyer actually check?
When we look at a house with a possible sinkhole history, here is the usual order:
- Ask the seller. Was there ever a sinkhole claim? Was it paid? Was the money used for repairs? Do you have the engineer’s report, the repair contract and the completion certification?
- Search the clerk’s official records for a recorded sinkhole report, neutral evaluator report or repair certification tied to the property.
- Pull the permit history for foundation, stabilization, grouting or underpinning work, and check whether each permit was finaled or left open.
- Check the subsidence incident map for the area, knowing its limits.
- Walk the house. Floor slope, wall and slab cracks, sticking doors and windows, and gaps around frames tell us whether the condition matches the paperwork.
A past sinkhole claim does not make a house unsellable, but it usually means fewer financed buyers and a longer sale.
How All About Real Estate can help
All About Real Estate LLC buys houses directly for cash anywhere in Florida, in all 67 counties, and has since 2014. We buy as-is, including houses with a sinkhole history, foundation problems or major repairs, and houses with tenants, occupants or squatters still living in them. We usually make a written offer within 24 hours and can close in as little as 7 days. We pay the closing costs, and there are no commissions.
Share whatever paperwork you have, even if it is incomplete, and we will tell you plainly how it affects our offer. Before you sign with any buyer, read what to ask a cash buyer, or see how we buy houses. We buy throughout the Tampa Bay counties often called “sinkhole alley,” including Hernando County, Pasco County and Hillsborough County, plus neighboring Pinellas County and all of Florida.
Call, text or WhatsApp (786) 753-8500, 24/7, or contact us online. Se habla español. Vorbim românește.
Frequently asked questions
Do I have to disclose a past sinkhole claim when selling in Florida?
Yes, if you made the claim and the insurer paid it. Florida law requires you to tell the buyer before closing that the claim was paid and whether the full amount was used to repair the sinkhole damage.
Is a sinkhole report part of the public record in Florida?
Often. After paying a sinkhole claim, the insurer must file the engineer’s or geologist’s report with the county clerk for recording, including the payment amount. The law says this recording is not a lien or title defect, but buyers can find it.
What is the difference between a sinkhole and a catastrophic ground cover collapse?
A catastrophic ground cover collapse requires an abrupt collapse, a visible depression, structural damage and a government order to vacate the building. Every Florida property insurer must cover it. Broader sinkhole loss coverage is optional and costs extra.
Does a repair permit prove a sinkhole was fixed?
Not by itself. A permit shows work was approved and inspected. The engineer’s report explains the cause and the recommended repair, and the engineer’s completion certification confirms the work was done. Buyers usually want all three.
Can I sell a house with a sinkhole history as-is?
Yes. You still must disclose a paid sinkhole claim and other known problems that materially affect value. All About Real Estate buys houses as-is with sinkhole or foundation history and pays the closing costs.
This article is general information, not legal or tax advice. Talk to a Florida attorney or CPA about your situation.
By Petru Pusta, owner of All About Real Estate LLC. Petru is a licensed Florida real estate broker (BK3293808) with Kariza Capital Realty LLC.
Sources
- Fla. Stat. § 627.706 (2026), Sinkhole insurance; catastrophic ground cover collapse; definitions
- Fla. Stat. § 627.7073 (2026), Sinkhole reports
- Fla. Stat. § 627.7074 (2026), Alternative procedure for resolution of disputed sinkhole insurance claims
- Johnson v. Davis, 480 So. 2d 625 (Fla. 1985)
- The Florida Bar Journal, The Return of the Pink Panther or Johnson v. Davis, Redux
- Florida Geological Survey (FDEP), Subsidence Incident Reports
- Florida Geological Survey (FDEP), Limitations of Subsidence Incident Reports Data
- Florida Geological Survey (FDEP), Sinkhole FAQ
- Hernando County, Permit Application Status and Property Search Portal
