Standardized Natural Hazards Disclosure Statement
Encyclopedia
The Natural Hazards Disclosure Act of California, effective June 1, 1998 (as amended June 9, 1998, requires that seller of real property
and their agent provide any prospective buyer with a "Natural Hazard Disclosure Statement" when the property being sold lies within one or more state-mapped hazard areas, including the following seven specific areas:
The state of California has a standardized reporting format for the seller and their agent to comply with the law, as it is their responsibility to disclose. The seller and their agent are allowed to seek out a 'third party' (disclosure company, licensed engineer, land surveyor, geologist, or expert in natural hazard discovery) to prepare this report for them. All parties involved are to sign one copy of the Natural Hazard Disclosure Report prior to the close of escrow.
It is illegal for agents to require the seller to use a particular disclosure company or to give the impression that the seller may not choose. If the report from a disclosure company is selected and that company is related or affiliated with the agent or broker, disclosure of this relationship must be made to the seller. Once the disclosure is made the seller may continue with that report or choose a report from another disclosure company. California law protects the seller's right to freely choose, for the sake of quality, service and cost.
Real estate agents and broker are forbidden to receive monetary compensation (referral fees, 'kick-backs') or excessive gifts from vendors or affiliates, including but not limited to disclosure companies.
Real property
In English Common Law, real property, real estate, realty, or immovable property is any subset of land that has been legally defined and the improvements to it made by human efforts: any buildings, machinery, wells, dams, ponds, mines, canals, roads, various property rights, and so forth...
and their agent provide any prospective buyer with a "Natural Hazard Disclosure Statement" when the property being sold lies within one or more state-mapped hazard areas, including the following seven specific areas:
- Flood Zones:
- Federal Emergency Management AgencyFederal Emergency Management AgencyThe Federal Emergency Management Agency is an agency of the United States Department of Homeland Security, initially created by Presidential Reorganization Plan No. 1 of 1978 and implemented by two Executive Orders...
(FEMA) Flood Zone (100 year flood) - Potential Dam Inundation
- Federal Emergency Management Agency
- Fire Zones:
- Very High Fire Severity Zone
- Wildland Fire Area
- Earthquake Fault Zone:
- Alquist-Priolo Fault ZoneAlquist Priolo Special Studies Zone ActThe Alquist-Priolo Earthquake Fault Zoning Act was signed into California law on December 22, 1972 to mitigate the hazard of surface faulting to structures for human occupancy.The act in its current form has three main provisions:...
- Alquist-Priolo Fault Zone
- Seismic Hazard Zones (Seismic Hazard Mapping Act):
- LiquefactionSoil liquefactionSoil liquefaction describes a phenomenon whereby a saturated soil substantially loses strength and stiffness in response to an applied stress, usually earthquake shaking or other sudden change in stress condition, causing it to behave like a liquid....
- Landslide
- Liquefaction
The state of California has a standardized reporting format for the seller and their agent to comply with the law, as it is their responsibility to disclose. The seller and their agent are allowed to seek out a 'third party' (disclosure company, licensed engineer, land surveyor, geologist, or expert in natural hazard discovery) to prepare this report for them. All parties involved are to sign one copy of the Natural Hazard Disclosure Report prior to the close of escrow.
It is illegal for agents to require the seller to use a particular disclosure company or to give the impression that the seller may not choose. If the report from a disclosure company is selected and that company is related or affiliated with the agent or broker, disclosure of this relationship must be made to the seller. Once the disclosure is made the seller may continue with that report or choose a report from another disclosure company. California law protects the seller's right to freely choose, for the sake of quality, service and cost.
Real estate agents and broker are forbidden to receive monetary compensation (referral fees, 'kick-backs') or excessive gifts from vendors or affiliates, including but not limited to disclosure companies.