EnvironmentalIntermediateCalifornia Exam

A California seller's agent discovers that a property is located within a Special Flood Hazard Area. The agent must:

ADecline to represent the seller
BDisclose the flood zone status to prospective buyersCorrect
COnly disclose if the buyer specifically asks
DReport the finding to the Army Corps of Engineers

Why Disclose the flood zone status to prospective buyers Is Correct

Answer B: Disclose the flood zone status to prospective buyers

Flood zone status is a material fact that must be disclosed in California. The California Natural Hazard Disclosure Statement (NHD) requires sellers to disclose if the property is in a Special Flood Hazard Area as mapped by FEMA.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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