What to Know About Natural Hazard Disclosure Reports in California 

What to Know About NHD Reports in California

A Natural Hazard Disclosure (NHD) report will determine, for California home buyers, whether or not a specific property lies within a known hazardous area. The hazards that are specifically assessed include areas that are known to experience wildfires, seasonal flooding, seismic activity, and even those areas which lie along an earthquake fault. California law requires that real estate agents provide prospective California property owners with required disclosures when a property lies within one of these types of areas.

California’s Natural Hazard Zones 

California is one of the most hazard-prone states in the country, and there are a number of different types of hazards which might afflict the state at any given time. NHD reports for Northern California and specifically for residents of northern cities, would include reference flooding hazards that could result due to potential dam failure or overflowing creeks and waterways.. NHD reports in Sacramento for instance, would certainly make reference to this potential hazard.

The entire coast of California is at risk for tsunamis, since it is exposed to the vast expanse of the Pacific Ocean, where tsunamis can come racing across the ocean from the Ring of Fire countries. Generally speaking, California law requires full disclosure on any properties for sale which happen to lie within areas that are at risk for special flooding, dam failure, high fire hazard, wildfires, seismic hazards, and earthquake faults.

California is the only state in the country which requires natural hazard disclosures to be provided to a prospective buyer. For example, densely populated areas which are most at risk for seismic activity and potential earthquakes are the central and southern regions of the state. This means that anyone considering the purchase of a home in the south, would be well-advised to check out the NHD reports in San Diego, or whichever other southern city they were considering for their new location.

Legal aspects of NHD reporting

Any buyer or potential buyer of a California home should be provided with an NHD statement at the moment that the home is being inspected. From this time forward, the buyer would have three days in order to fully review and assess the NHD statement. The buyer would then have the option to withdraw any offer they had tendered, if the information contained in the NHD report causes them to change their mind about purchasing the home.

In the event that the buyer has read and fully understands the information in the NHD report, and still chooses to purchase the home, certain parties to the sale would be legally obligated to sign the NHD statement before closing can occur. The intent of the law is to ensure that all prospective home buyers are fully aware of the risks involved in the area where they are purchasing a home. If they then choose to go ahead with the purchase, they cannot claim ignorance of the local area hazard risks.

Order NHD Reports in San Diego and Northern California

HomeGuard Incorporated is a Home, Termite, Roof Inspection company and a Natural Hazard Disclosure report provider, serving most of Northern California and greater San Diego areas. We provide realtors, homeowners, and home buyers with the services they need, when they need them, to keep the transaction process moving. Call 855-331-1900 or order an inspection or a NHD report online today.