Selling New Construction With Builder Defects in Florida
Published by Cash Flow Deals · Last updated 2026-08-03 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®), affiliated with Silver Door Realty, LLC (License #CQ1064903) · 4 min read
Cash Flow Deals gives you two options for selling new construction with builder defects in Florida, alongside a traditional listing: the Fast Cash Offer, where we buy your house as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You choose. The number is agreed before any work starts, and it changes only if you agree. 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. Florida's Chapter 558 notice and cure process can still run in the background. On Premium, the buyer's lender still has to clear the loan.
| 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. | Choose the Fast Cash Offer, where we buy as-is and close, or the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. The number is agreed before any work starts, and it changes only if you agree. 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. You can compare your offers while the builder's response window runs; closing remains subject to applicable title and lender requirements. |
| 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. | Premium Cash Offer: Cash Flow Deals is paid as a separate line item on the closing statement, apart from repair costs. Fast Cash Offer: no listing commission to Cash Flow Deals. |
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 starts with your defect list and any active Chapter 558 notice. In step 1, we review those details and show you the Fast Cash Offer, where we buy as-is and close, beside the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You choose. In step 2, we put your chosen offer in writing: the number is agreed before any work starts, and it changes only if you agree. 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. In step 3, if you choose Premium, we bring that buyer, whose own lender funds the purchase. Your home may be listed through Silver Door Realty, a licensed Florida brokerage, with a licensed agent and scheduled showings. In step 4, the Premium buyer signs a new contract directly with you, and title transfers once, directly from you to that buyer.
Repairs, Financing, and Your Agreed Number
With Cash Flow Deals, you choose between the Fast Cash Offer, where we buy your house as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. Cash Flow Deals is a Florida real estate investor; your Premium sale may be listed through Silver Door Realty, our licensed Florida brokerage partner. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. On Premium, only what the buyer's lender requires gets fixed, with repair costs settled from the sale proceeds out of our share, not your agreed number. With Fast Cash, you make no repairs. The number is agreed before any work starts, and it changes only if you agree. 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. On a home with builder defects, the buyer's appraisal and lender requirements matter: an FHA appraiser checks HUD's minimum property requirements, and a conventional lender applies its own property standards before funding. If the buyer's loan falls through, that is our problem, not yours, and you can still choose the Fast Cash Offer at its own number instead of the Premium Cash Offer.
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. With Cash Flow Deals, you choose the Fast Cash Offer, where we buy as-is and close, or the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. On Premium, only the repairs the buyer's lender requires get done, with costs settled from the sale proceeds out of our share and nothing paid by you up front. The number is agreed before any work starts, and it changes only if you agree. 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.
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 review your notice while it is still working through the response window and present the Fast Cash Offer, where we buy as-is and close, beside the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You choose. The number is agreed before any work starts, and it changes only if you agree. 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. Your title company and, on Premium, the buyer's lender still need to clear any claim-related requirements for closing.