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?
Correct Answer
C) A sale of residential property transferred pursuant to a court order in a probate proceeding
California Civil Code §1103.1 exempts transfers made pursuant to court order from the NHD requirement. In a probate proceeding, when a sale is court-confirmed, the transfer qualifies under this exemption because it is effectuated by court order rather than by voluntary agreement between parties. The statutory basis is the nature of the transfer — court-ordered — not the fiduciary's level of knowledge about the property.
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Previous Question
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?
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A buyer receives an NHD report for a property in San Bernardino, California. The report shows the property is in a Dam Inundation Zone. What does this zone designation indicate?