A seller in Sacramento is selling a single-family home. The listing agent wants to ensure accurate NHD information. Under California law, can the seller's agent rely on a third-party NHD report from a qualified company to satisfy the disclosure requirement?
Correct Answer
A) Yes, the agent may rely on a report from a qualified third-party NHD company and is not liable for errors in that report if the agent acted in good faith
Under California Civil Code §1103.4, a seller or agent may rely on a report from a qualified third-party NHD company. If the agent uses such a report in good faith, the agent is not liable for errors or inaccuracies in the report. This safe harbor encourages the use of professional NHD services.
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Previous Question
California Civil Code §1103 requires sellers to disclose whether a property falls within certain statutory natural hazard zones on the Natural Hazard Disclosure Statement (NHD). How many specific zones must be addressed, and which of the following correctly identifies all of them?
Next Question
An NHD report discloses that a property is located in a Very High Fire Hazard Severity Zone under California Government Code §51178. Which of the following most accurately describes the legal and practical effect of this designation on the transaction?