5 Things to Know About the Natural Hazard Disclosure Report in California

5 Things to Know About the Natural Hazard Disclosure Report in California

Selling your California home? If so, you’ll need to be familiar with the Natural Hazard Disclosure Report. As mandated by state law, all property sales in California require this report. 

So, whether you’re selling now or in the near future, here’s what you’ll need to know about the Natural Hazard Disclosure when selling a home in California. 

Keep Buyers Informed 

The main purpose of the Natural Hazard Disclosure is to let buyers know if the property lies in a hazard zone. 

If the listed property is located in an area common to natural disasters or weather emergencies, buyers need to be aware. The six issues commonly covered within the Natural Hazard Disclosure are special flood risks, dam inundation, seismic activity, earthquake faults, very high fire and/or wildlife fires. 

On top of these main issues, the report can also cover minor hazards. Properties affected by military ordinances, airport influence, and radon gas exposure are oftentimes also disclosed within this report. 

In addition, properties affected by toxic mold and environmental contamination problems should disclose this within their Natural Hazard Report. Given its climate and conditions, most properties in California will indicate as susceptible to at least one of these hazards.

Short and Simple

Unlike other parts of the disclosure package, the Natural Hazard Disclosure is incredibly straight-forward and concise. This one-page report is filled with questions about potential types of hazards and sellers answer “yes” or “no” in regard to how these issues apply to their listed property. Natural Hazard Reports are purchased from companies whose only job is to maintain these hazard records. 

Timing the NHD Within a Sale

Since property transactions include many steps, sellers need to know when their Natural Hazard Disclosure is ‘due’ to the buyer. According to California state ordinance, sellers need to provide buyers with the NHD Report at the time of property inspections. This provides the buyer with in-depth coverage of the surrounding area to supplement the property’s inspection results. 

These documents give buyers the chance to review all of the terms of their potential transactions. Once buyers receive the NHD Form, they have 3 days to review the information and decide whether they’d like to move forward with the deal or not. Buyers have the right to drop out of a deal based on the results of the NHD Report or inspections. 

When buyers choose to move forward with the deal, all members of the transaction are required to sign the Natural Hazard Disclosure in order to finalize the sale. 

If you have further questions about the NHD document, don’t hesitate to ask your agent! Your agent’s experience and knowledge are vital resources within property transactions. 

For Agents

Glide now offers an NHD Report marketplace from within the Glide interface. When you finish the transaction set up process, you can select a report from your favorite NHD vendor which will automatically appear in the transaction’s ‘Documents’ folder when ready. Learn more about this option here.

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