What must an Alaska seller disclose regarding flood zones, and what financial obligation may arise for buyers of affected properties?
Correct Answer
B) Whether the property is in a FEMA flood zone, and buyers may be required to purchase flood insurance
Alaska sellers must disclose if a property is located in a FEMA-designated flood zone. Alaska experiences significant flooding from spring river ice breakup and coastal storm surge. Properties in Special Flood Hazard Areas (SFHAs) with federally backed mortgages are required to carry flood insurance, making this a material disclosure affecting buyer costs and insurability.
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