California Real Estate SalespersonPractice of Real Estate and DisclosuresMedium
A newly constructed home is being sold for the first time by the builder. Under California's Natural Hazard Disclosure Act, which statement is correct regarding NHD requirements for this transaction?
- ANHD disclosure is required for all residential sales regardless of construction status
- BNHD disclosure is required only if the property is located in a flood zone
- CNHD disclosure is exempt because the property is newly constructed
- DNHD disclosure is only required if the buyer specifically requests it
Show answer & explanationAnswer & explanation
Correct answer: A. NHD disclosure is required for all residential sales regardless of construction status
The Natural Hazard Disclosure Act applies to all transfers of real property subject to disclosure requirements, including new construction sold by a builder, unless a specific statutory exemption applies (such as certain foreclosure or probate transfers). New construction status alone does not exempt the transaction.
Why the other options are wrong
- B. NHD covers multiple hazard zones (flood, fire, seismic, etc.), not just flood zones.
- C. New construction is not a recognized NHD exemption category.
- D. NHD disclosure is mandatory, not dependent on buyer request.
NHD Applicability to New Construction
The Natural Hazard Disclosure Statement requirement applies to virtually all residential real property transfers, including sales of newly constructed homes, unless a specific statutory exemption applies.
- New construction is not automatically exempt from NHD
- NHD covers flood, fire, seismic, and other hazard zones
- Exemptions exist for certain transfers like some foreclosures/probate
Memory trick: 'New or old, the hazard map still holds.'