A seller in Pasadena, California, provides the NHD to the buyer at the same time as the TDS. The buyer reviews both documents and proceeds with the purchase. Two months after closing, the buyer learns that the NHD failed to identify the property as being in a Seismic Hazard Zone. Under California Civil Code §1103.13, what damages may the buyer recover?
Correct Answer
D) Actual damages suffered as a result of the omission
Under California Civil Code §1103.13, a buyer who does not receive accurate NHD information may recover actual damages suffered as a result. This could include increased insurance costs, remediation expenses, or the difference in property value due to the undisclosed hazard zone.
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In California, the NHD identifies whether a property is in specific natural hazard zones. Which government agency maps the Special Flood Hazard Areas referenced in the NHD?
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A property's NHD report shows it is located in a FEMA Special Flood Hazard Area. The buyer is financing the purchase with a conventional mortgage through a federally regulated lender. Which of the following insurance requirements will the lender MOST likely impose?