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?
Correct Answer
C) The buyer may seek actual damages suffered as a result of the failure to disclose the natural hazard zone
Under California Civil Code §1103.13, if the seller fails to provide the required NHD, the buyer may seek actual damages suffered as a result. This includes any financial harm caused by the undisclosed hazard zone, such as increased insurance costs, remediation expenses, or diminished property value.
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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?
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Under California Civil Code §1103, the Natural Hazard Disclosure requirement applies to transfers of residential property with one to four units. Which of the following transactions is EXEMPT from the NHD requirement?