How does a real estate disclosure statement inform developers about potential natural disaster locations on the property? If you aren’t sure, you probably need to put off signing any paperwork related to the transaction until you read on to understand more fully what information there is to gain from the real estate disclosure statement. Common laws and statutes require anyone selling real estate through a legal obligation to disclose all information regarding a property that is relevant to that property’s value.
This means that real estate sellers are required to perform an inspection of the property to ascertain any physical defects or other related problems existing on the site. Interested buyers should also access documentation regarding hazardous zones within the nearby area of the property for sale. It’s also suggested that buyers interested in purchasing a property research natural disaster areas, i.e. flooding, earthquakes, outbreaks of fires, etc. can all be potential major financial problems for property owners. The expenses related to such natural hazards include: costs of emergency personnel, costs of relief and recovery efforts, etc.
To help minimize the costs associated with this type of situation, people should be discouraged from residing in zones deemed hazardous. The Natural Hazards Disclosure Law, passed in 1998, is useful for buyers who are interested in knowing whether or not an area they are potentially going to purchase in is actually in a natural hazard zone. According to the legislation, sellers or their agents are required to advise the potential buyer if the property being purchased is in a high risk zone for natural hazards.
The disclosure of this information provides prospective buyers an opportunity to make a fair offer on the property. Buyers should take into account a number of factors prior to making an offer:
- Economic impact of natural hazards on the property’s potential growth as well as probably maintenance that will be required.
- Expenses for appropriate coverage.
- Assistance that would be needed after a natural disaster in the future.
If you need assistance determining information relevant to your own property purchase, contact the southern California real estate and land developmensouthern California real estate and land development specialists: The Law Office of Retz & Aldover LLP.