Zone Disclosure Reports
SELLERS UPDATE

It's the law!!! As of June 1, 1998, State law requires sellers to disclose certain types of naturally occurring hazards to potential buyers.  Assembly Bills 6x, 1195 and 248, created a mandatory form for these disclosures.  This form is the Natural Hazard Disclosure Statement or a NHDS. 

There are six 'hazard zones'. The disclosure law require all potential buyers to be told whether the property is in one, or more, of the following zones:

  1. A special flood hazard zone as designated by the Federal Emergency Management agency (FEMA).

  2. A State mapped 'dam failure inundation zone'.

  3. A high fire severity zone or 'bates' zone.

  4. A State mapped Wildland fire zone

  5. An Earthquake fault study zone.

  6. A Seismic Hazard Zone.

Locating and reading these maps in not an easy task for the average seller.  Failure to disclose, or incorrect disclosure, can result in lawsuit and monetary loss.  The best and least costly way to meet these requirements is to hire a 'third party expert' to research and prepare the NHDS. 

California Civil Code Section 1103.4 provides a liability shield for sellers who rely on third party experts.  This section states that the seller is not liable for errors, inaccuracies or omissions in any of the information provided by the third party disclosure report, unless the seller has personal knowledge of the error. 

LGS, will do the research and produce a Natural Hazard Disclosure Statement in the required format, ready for the signature of the buyer, agent and yourself.  PhD reports are insured by $10 Million in errors and omissions insurance.

Our disclosure report names you, the seller, additionally insured under that policy. The package includes Mello-Roos disclosure when it is applicable.  We also include the mandatory "Homeowners Guide to Earthquake Safety and Environmental Hazards' at no additional expense.

This complete package cost only $59.95 and can be paid in advance and/or at the Close of Escrow.

California Real Estate Law gives buyers three days to cancel a transaction whenever material information is disclosed to them.  It is in your best interest, as the seller, to get all disclosures in the hands of the potential buyer as soon as possible.  We recommend ordering the NHDS report soon after listing the property.  Buyers will then be able to review and accept the disclosures as part of their offer.  Your agent can, and should, advise you on these issues.

Professional Hazard Disclosures, are professionally produced under the supervision of a licensed engineering geologist.  One low price gets you everything you need. Since our reports are professionally prepared, consultation with our professionals is included in our price.

Zone Disclosure reports provide you and your agent with:

  1. A complete package for one low price of $59.95.

  2. Natural Hazard Disclosure Statement ready for signature,

  3. Free professional consultation,

  4. Security of being named 'additionally insured'.


All information is deemed to be accurate, but is not guaranteed.
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