Under California law, several parties may have obligations related to natural hazard disclosure. All of the following statements about the NHD are correct EXCEPT:
Correct Answer
A) The buyer's agent has no obligation to review the NHD for obvious errors or inconsistencies
The buyer's agent has a fiduciary duty to the buyer, which includes reviewing disclosures for obvious errors or inconsistencies. While the buyer's agent is not expected to verify every data point in the NHD, ignoring obvious problems would be a breach of the agent's duty to protect the buyer's interests.
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Previous Question
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?
Next Question
A buyer in Marin County receives an NHD report that correctly identifies the property as being in a Seismic Hazard Zone. The report does not, however, include a supplemental tax disclosure or information about Mello-Roos. The buyer's agent asks whether the NHD company should have included this information. What is the correct answer?