EnvironmentalIntermediateCalifornia Exam

What is a Natural Hazard Disclosure (NHD) in California?

AA report on the property's flood insurance, under California environmental disclosure law

BA required disclosure stating whether a property is in a designated natural hazard zoneCorrect

CAn environmental impact report for new construction, as required under standard hazard disclosure practice

DA pest inspection report, consistent with California environmental regulations

Why A required disclosure stating whether a property is in a designated natural hazard zone Is Correct

Answer B: A required disclosure stating whether a property is in a designated natural hazard zone

California requires sellers to disclose whether a property is in a natural hazard zone — including flood zones, fire hazard zones, earthquake fault zones, seismic hazard zones, and others.

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.

People Also Study

Key Terms to Know

Private Mortgage Insurance (PMI)

Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.