California Real Estate SalespersonPractice of Real Estate and DisclosuresMedium
A seller's agent discovers that a property lies within a Special Flood Hazard Area as designated by FEMA. Under the Natural Hazard Disclosure Statement requirements, what must be disclosed to the buyer?
- ADisclosure is required only if the buyer specifically requests flood insurance information
- BDisclosure is required regardless of whether the buyer intends to obtain flood insurance
- CNo disclosure is required since FEMA flood zones are a federal designation, not a state one
- DDisclosure is required only for properties constructed after 1990
Show answer & explanationAnswer & explanation
Correct answer: B. Disclosure is required regardless of whether the buyer intends to obtain flood insurance
California's NHD Statement requires disclosure of whether a property lies within a Special Flood Hazard Area as designated by FEMA, regardless of the buyer's insurance intentions or the property's age of construction.
Why the other options are wrong
- A. Disclosure is mandatory regardless of the buyer's insurance plans.
- C. California law incorporates federal flood zone designations into the mandatory NHD disclosure.
- D. There is no age-of-construction exception for flood zone disclosure.
NHD Flood Zone Disclosure
Sellers must disclose on the Natural Hazard Disclosure Statement whether a property is located in a FEMA-designated Special Flood Hazard Area, regardless of buyer intentions or property age.
- NHD covers flood zones, fire hazard zones, seismic zones, and more
- Flood zone status comes from FEMA flood maps
- Disclosure is mandatory, not conditional on buyer requests
Memory trick: FEMA flags the flood zone, and NHD always tells the buyer.