Environmental

In Montana, a seller must disclose on the Seller's Disclosure form whether the property is located in a floodplain because:

AIt has no effect on property value or insurance
BFloodplain location requires mandatory flood insurance for federally backed mortgages and affects insurability and risk✓ Correct
COnly commercial properties need flood disclosure
DFEMA maps are not relevant to Montana transactions

Explanation

Properties in FEMA-designated Special Flood Hazard Areas require mandatory flood insurance for federally backed mortgages (FHA, VA, conventional conforming loans). Flood risk affects property insurability, financing, and value, making it a material fact requiring disclosure in Montana.

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