A seller in Chico, California, has a property that was recently remapped by FEMA from Zone X (minimal flood risk) to Zone AE (high-risk flood zone). The seller received notice of the map change but has not updated the NHD. A buyer submits an offer. What must the seller do?
Correct Answer
D) Disclose the FEMA map change to the buyer and provide an updated NHD reflecting the new flood zone designation
The seller must provide accurate NHD information to the buyer. Since the seller knows the FEMA flood zone maps have been updated and the property is now in Zone AE, this material change must be disclosed. Providing an outdated NHD that no longer reflects current hazard zone designations would be a failure to disclose known material information.
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Previous Question
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?
Next Question
Under California law, several parties may have obligations related to natural hazard disclosure. All of the following statements about the NHD are correct EXCEPT: