July 2nd, 2018 at 1:37 pm

Question: Last week, you told us about the new Tenant Flood Hazard Disclosure (TFHD) requirement for all new residential leases entered into starting July 1, 2018. A sales representative from a Natural Hazard Disclosure (NHD) company is now offering an NHD Renter Report for $29. The sales rep said that, regardless of the TFHD disclosure form, a landlord must give a tenant an NHD Renter Report disclosing whether the property is located in a flood hazard zone. Is that correct? 

Answer: No. The law does not require a landlord to give the tenant an NHD Renter Report. The TFHD is adequate. On the TFHD, the landlord must disclose any “actual knowledge” that the property is located in a Special Flood Hazard Area or an Area of Potential Flooding. It is true that these 2 flood zones are the same 2 flood zones included in an NHD that sellers provide to their buyers. It’s also true that a landlord’s “actual knowledge” could potentially be construed to include, among other things, the flood zones disclosed on an NHD that the landlord received when the landlord purchased the property. However, the landlord is not required to give the tenant an NHD Renter Report. In fact, paragraph 2 of the TFHD provides the web address for California’s “My Hazards Tool” where tenants can look up hazard zone information free of charge.

-Thank you to Lyle Elliott (Ventura Branch Manager) for suggesting this week’s legal tip.

-Here’s wishing everyone a happy 4th of July in the land of the free and the home of the brave!

Copyright© 2018 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of July 2, 2018. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.

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