A Guide for
Real Estate Sellers in Florida
From Palm Beach to the Florida Keys —
Prepared by Ray Contreras,
Luxury Real Estate Advisor
Selling a home along South Florida's Atlantic corridor, especially in the $1M+ segment, involves disclosure obligations, tax rules, and buyer expectations that go well beyond a generic “list and show” process. This guide covers what actually matters for sellers here: current Florida disclosure law, condo compliance documents buyers will demand, FIRPTA withholding for international sellers, and how to position a property for this specific market.
Getting Ready to List
Price It With a Real CMA, Not an Algorithm
Automated home value estimates are a starting point at best, especially for unique or waterfront properties where comparable sales require real judgment. A proper Comparative Market Analysis from an agent familiar with your specific neighborhood will always outperform an algorithm in this segment.
Consider a Pre-Listing Inspection
Identifying issues before a buyer's inspector does gives you control — time to repair, price around it, or disclose it clearly, rather than renegotiating under pressure mid-contract.
Staging & Photography Standards for This Price Point
Buyers shopping $1M+ properties expect professional photography, and increasingly, video/drone footage and 3D virtual tours as standard, not optional. Professional staging (or at minimum, decluttering and depersonalizing) measurably affects both time on market and final sale price in this segment.
Disclosure Obligations Sellers Underestimate
Florida's Disclosure Duty (Johnson v. Davis)
Florida is a full-disclosure state: sellers must disclose known material defects that affect a property's value, even in an “as-is” sale. This duty comes from the landmark case Johnson v. Davis and applies regardless of what the contract says about “as-is” condition — as-is affects a buyer's right to demand repairs, not a seller's duty to be honest about known issues (roof, foundation, plumbing, electrical, mold, prior flood damage).
The FD-1 Flood Disclosure Form
Since October 1, 2024, Florida law requires a written flood disclosure (the FD-1 form) on every residential sale, including condos and new construction. As of October 1, 2025, this form was expanded to also require disclosure of any flood damage during your ownership — not just prior insurance claims or federal flood assistance received. This applies whether or not you ever filed a claim.
Other Standard Required Disclosures
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Lead-based paint disclosure (federally required for any home built before 1978)
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Radon gas notice (required on all Florida contracts)
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HOA/condo association financial health, pending special assessments, and litigation
If You're Selling a Condo: Have These Ready Before You List
Buyers in this market increasingly request these documents at their very first inquiry — have them ready before you list, not after an offer comes in:
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Most recent Structural Integrity Reserve Study (SIRS)
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Milestone Inspection Report, if the building has reached the required age (25 years coastal, 30 inland)
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Written disclosure of any current, pending, or anticipated special assessments
If You're a Foreign National Seller: FIRPTA Withholding
Under the Foreign Investment in Real Property Tax Act (FIRPTA), when a non-U.S. person sells U.S. real estate, the buyer is generally required to withhold 15% of the gross sale price at closing and remit it to the IRS — regardless of your actual gain or loss on the sale. For sales between $300,001 and $1,000,000 where the buyer will use the home as a personal residence, the rate is reduced to 10%. This withholding is a prepayment mechanism, not an extra tax — you can recover any excess by filing a U.S. tax return, or reduce the withholding in advance by filing IRS Form 8288-B before closing. Many foreign sellers are caught off guard by this at the closing table; planning for it in advance (ideally 90+ days before closing) avoids having a large sum tied up for months.
Marketing for This Price Point
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MLS listing plus luxury syndication networks that reach qualified buyers beyond the local market
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Private or off-market marketing, when appropriate, for ultra-luxury properties where discretion matters to the seller
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International marketing exposure — relevant given the volume of foreign buyer activity along this corridor
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Professional media package: photography, video/drone footage, and virtual tour as standard for $1M+ listings
Negotiating & Under Contract
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Handling multiple offers: price isn't the only variable — financing strength, contingencies, and closing timeline all matter
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Appraisal contingencies from the seller's side, especially relevant with jumbo-financed buyers where appraisal review can take longer
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Repair negotiations following the buyer's inspection — having your pre-listing inspection in hand strengthens your position here
Closing & After the Sale
Capital Gains on Your Primary Residence
If the property was your primary residence for at least 2 of the last 5 years, you can generally exclude up to $250,000 of capital gain from taxable income if filing single, or $500,000 if married filing jointly. Gains above that threshold are taxable.
1031 Exchange for Investment Properties
If the property being sold is an investment property (not your primary residence), a 1031 exchange may allow you to defer capital gains tax by reinvesting proceeds into another qualifying investment property, provided strict timelines and rules are followed. This requires coordination with a qualified intermediary and should be discussed with a tax professional well before closing — not after.
Seller's Checklist
Before You List
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Get a professional CMA (not just an automated estimate)
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Consider a pre-listing inspection
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Schedule professional photography/video
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Gather condo/HOA documents (SIRS, milestone inspection, special assessment disclosure) if applicable
Disclosures to Prepare
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Complete the FD-1 flood disclosure form
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Complete seller's property disclosure covering known material defects
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Lead-based paint disclosure, if built before 1978
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Radon gas notice
If You're a Foreign National Seller
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Discuss FIRPTA withholding with a tax professional before listing
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Consider filing Form 8288-B in advance if you expect withholding to exceed actual tax owed
Under Contract
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Respond promptly to inspection repair requests
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Track buyer's appraisal and financing timeline
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Confirm all required disclosures are signed and delivered
Before Closing
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Confirm payoff amount with your mortgage lender, if applicable
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Discuss capital gains or 1031 exchange planning with a tax professional
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Prepare for the final walkthrough
Helpful Resources
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Florida DBPR — Condominium Safety (SB 4-D) Information — https://condos.myfloridalicense.com/faqs/
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IRS — FIRPTA Withholding (for foreign national sellers) — https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
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IRS — Home Sale Capital Gains Exclusion (Topic 701) — https://www.irs.gov/taxtopics/tc701
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FEMA Flood Map Service Center — https://msc.fema.gov/portal/home
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Citizens Property Insurance Corporation — https://www.citizensfla.com/
Thinking about listing, or just want a straight answer about what your home is really worth? Reach out to Ray Contreras directly, personalized guidance beats a generic guide every time.