A California property near a creek has experienced periodic flooding, but the NHD shows it is NOT in a FEMA Special Flood Hazard Area. The listing agent knows about the flooding history from local residents. The seller is unaware of any flooding because they purchased the property only one year ago during a drought. What disclosures are required?
Correct Answer
A) The agent must disclose the flooding history as a known material fact separate from the NHD, even though the NHD does not flag a flood zone
The NHD covers only statutory FEMA flood zones. The agent's independent knowledge of flooding history from local sources constitutes a material fact under Cal. Civil Code §2079. The agent must disclose this information to the buyer regardless of the NHD findings. The NHD's absence of a flood zone designation does not relieve the agent from disclosing known flooding risks.
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Related Concepts
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
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