Natural Hazard Disclosure Reports in California

California law requires sellers (and their agents) to disclose certain types of naturally occurring hazards to potential buyers. Assembly Bills 6x, 1195, and 248 created a mandatory form for these disclosures — the Natural Hazard Disclosure Statement. Disclosure reports are designed to assist sellers in fulfilling these legal requirements in an easy-to-understand, economical format.

There are six hazard zones that must be disclosed: (1) A Special Flood Hazard Zone as designated by the Federal Emergency Management Agency (FEMA), (2) A Dam Failure Inundation Zone, (3) A Very High Fire Hazard Severity Zone, (4) A Wildland Area That May Contain Substantial Forest Fire Risks, (5) An Earthquake Fault Zone, and (6) A Seismic Hazard Zone.

California Civil Code Section 1103.4 provides a liability shield for sellers who rely on third-party experts. The seller is not liable for errors, inaccuracies, or omissions of any information provided by the third-party disclosure report — unless the seller has personal knowledge of the error. This makes ordering a professional disclosure report a critical risk-management step.

California real estate law gives buyers three days to cancel a transaction whenever material information is disclosed to them. It is in the seller's best interest to get all disclosures in the hands of the potential buyer as soon as possible. Team Goeglein recommends ordering the disclosure report as soon as the property is listed — buyers will then be able to review and accept the disclosures as part of their offer.

Team Goeglein at Fidelity National Title coordinates disclosure reports on transactions across the South Bay and Westside LA. Matt Goeglein and Xavier de la Piedra IV ensure that all statutory disclosure requirements are met early in the transaction to avoid delays.