Environmental

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 buyers✓ Correct
COnly disclose if the buyer specifically asks
DReport the finding to the Army Corps of Engineers

Explanation

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. Agents have an independent duty to disclose known material facts.

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