Selling New Construction With Builder Defects in Florida
2 min read · Last updated 2026-08-03 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)
Cash Flow Deals is one real option for selling new construction with builder defects in Florida, alongside a traditional listing, and it locks the net price before the defect list is fully scoped or repaired. Florida's Chapter 558 notice and cure process can still run in the background. A buyer's lender still has to clear the loan, but the number to the seller is already set.
| Factor | Traditional Listing | Cash Flow Deals |
|---|---|---|
| Timeline | An active or pending Chapter 558 claim, or unresolved builder repairs, can stall a financed sale for months while the pre-suit notice and cure process runs. | Net price is locked before the defect list gets fully scoped, so the sale isn't waiting on the builder's response window. |
| Repairs | FHA and conventional appraisers flag major defects under HUD's minimum property requirements, and the seller usually has to fix or credit for them before the loan clears. | Defects get scoped and priced after the net price is already set, with the seller seeing the number before deciding what to fix. |
| Fees / Costs | Commission is negotiable post-NAR settlement (Aug. 17, 2024), plus any repair costs, inspection fees, or legal costs tied to a builder claim. | A flat fee runs through Silver Door Realty as one line item on the closing statement, separate from repair costs. |
What Counts as a Builder Defect in Florida
A builder defect covers anything from cosmetic issues like cracked stucco or uneven flooring to structural problems like drainage failures, foundation settling, or code violations caught after the certificate of occupancy was issued. New construction in Florida is not exempt from these problems just because the home is young. A defect can surface within the first year, or it can take several years to show up once the house has gone through a few rainy seasons.
Florida's Chapter 558 Notice and Cure Process
Florida Statute Chapter 558 requires a homeowner to send the builder or contractor a written notice of claim before filing a lawsuit over a construction defect. Under Section 558.004, the contractor generally has 30 days after receiving that notice to inspect the property, and then must respond in writing within a set window that depends on the size of the claim, either offering to repair the defect at no cost, offering a monetary settlement, or disputing the claim. This process has to run its course before litigation, and a seller marketing the home while a notice is active should expect a buyer's lender to ask questions about it.
The Statute of Repose Sets an Outer Deadline
Florida Statute 95.11(3)(b) sets a four-year statute of limitations and, after an April 2023 change, a seven-year statute of repose for construction defect claims, down from the previous ten years. The repose period is an outer limit. It can bar a claim even if the defect wasn't discoverable earlier. A seller dealing with an older defect should confirm with a Florida real estate attorney whether the window to act is still open.
Cash Flow Deals' Process
Cash Flow Deals' Process: 1. Cash Flow Deals reviews the defect list and any active Chapter 558 notice before naming a net number. 2. The net price gets locked in writing before repairs are scoped or negotiated with the builder. 3. Cash Flow Deals matches the property to a real FHA or conventional buyer whose own lender funds the purchase. 4. Title transfers once, directly from seller to buyer, through Cash Flow Deals' licensed brokerage partner, Silver Door Realty.
Repairs, Financing, and the Locked Price
Cash Flow Deals is a Florida real estate investor that locks in a net price for a seller's house before repairs are scoped, using a novation-based, flat-fee process arranged through its licensed FL brokerage partner, Silver Door Realty — not a traditional listing, and not a brokerage itself. On a home with builder defects, that order matters, since an FHA or conventional appraiser will flag major issues under HUD's minimum property requirements before the buyer's loan can fund. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens.
Common questions
What is Florida's Chapter 558 notice and cure process?
It's a required pre-suit step for construction defect claims. The homeowner sends the builder or contractor written notice of the defect, and under Section 558.004, the contractor generally gets 30 days to inspect and then a set window to respond in writing that depends on the size of the claim, before a lawsuit can be filed.
How long do I have to file a construction defect claim in Florida?
Florida Statute 95.11(3)(b) sets a four-year statute of limitations, with a seven-year statute of repose as the outer deadline following an April 2023 change to the law. Confirm your specific timeline with a Florida real estate attorney, since the dates depend on when the defect occurred and when it was discovered.
Will builder defects stop my buyer's FHA loan from closing?
They can. FHA appraisers check the property against HUD's minimum property requirements, and a major defect can hold up the loan until it's fixed or otherwise resolved. Cash Flow Deals locks the net price before that repair scoping happens.
Do I have to finish a Chapter 558 claim before I sell?
Not necessarily before you sell, but a title company or lender will usually want to know the status of any active claim. Cash Flow Deals can lock a net price while a notice is still working through the response window.