Jason is buying a home in a low-lying area of the Central Valley, California. The NHD report indicates the property is in a FEMA Special Flood Hazard Area. What is one practical implication for Jason?
Correct Answer
A) Jason will likely be required by his mortgage lender to purchase flood insurance
Properties in FEMA Special Flood Hazard Areas are subject to mandatory flood insurance requirements for federally backed mortgages. Jason's lender will likely require him to purchase a flood insurance policy, typically through the National Flood Insurance Program (NFIP) or a private insurer.
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A listing agent in Hayward, California, is preparing disclosures for a home located near the Hayward Fault. The NHD report confirms the property is within an Alquist-Priolo Earthquake Fault Zone. What is the significance of this designation under California law?
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A California seller sells a single-family home without providing a Natural Hazard Disclosure. The buyer later discovers the property is in a Seismic Hazard Zone with liquefaction risk. Under California Civil Code §1103.13, what remedy does the buyer have?