Property Disclosure Reports

Special Flood Hazard Area -- FAQ

What is a Special Flood Hazard Area?
Special Flood Hazard Areas (SFHA) are flood areas also known as the 100 year flood and the national standard on which the floodplain management and insurance requirements of the NFIP are based.
What does the Residential Property Disclosure form say?
The owner makes no representations with respect to whether the property is located in one or more special flood hazard areas and purchasers are advised to exercise whatever due diligence they deem necessary, including (i) obtaining a flood certification or mortgage lender determination of whether the property is located in one or more special flood hazard areas, (ii) review of any map depicting special flood hazard areas, and (iii) whether flood insurance is required, in accordance with terms and conditions as may be contained in the real estate purchase contract, but in any event, prior to settlement pursuant to such contract.
Why is this information important?
Property owners in designated Special Flood Hazard Areas may be required to purchase flood insurance if (a) they are being assisted by Federal programs or by Federally supervised, regulated, or insured agencies or institutions (b) the property is located in a community that is participating in the National Flood Insurance Program.

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