EstatePass
Practice Of Real Estate DisclosuresNatural_hazard_disclosureMEDIUM

A property in Calabasas, California, is sold with an NHD report that correctly identifies it as being in a Very High Fire Hazard Severity Zone. Two years later, a devastating wildfire sweeps through the area and destroys the home. The buyer sues the seller for failing to adequately warn about the fire danger. Under California law, what is the most likely outcome?

Correct Answer

C) The seller is not liable because the NHD accurately disclosed the fire hazard zone designation

If the NHD accurately disclosed the Very High Fire Hazard Severity Zone designation, the seller fulfilled the statutory disclosure obligation under Cal. Civil Code §1103. The buyer received adequate notice of the fire risk and chose to purchase with that knowledge. The seller is not guaranteeing the property against fire damage by providing the NHD.

Answer Options
A
The seller is liable because the NHD should have included specific fire mitigation recommendations
B
The seller is liable because selling property in a fire zone creates strict liability for fire damage
C
The seller is not liable because the NHD accurately disclosed the fire hazard zone designation
D
The seller is not liable, but the listing agent is liable for not recommending fire-resistant construction

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Disclosures Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate Disclosures

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate Disclosures

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Disclosures Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

NHDwildfireseller_liabilityadequate_disclosurefire_hazard

Related Concepts

Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.

A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.

Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.

Was this explanation helpful?

More Practice Of Real Estate Disclosures Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing