Environmental

A property in New York is found to be located in a FEMA Special Flood Hazard Area (SFHA). The owner is required to:

ADemolish and rebuild the structure on higher ground
BPurchase flood insurance if they have a federally backed mortgage✓ Correct
CObtain a permit from the NY DEC before selling
DDisclose the flood zone designation only on commercial properties

Explanation

Properties located in FEMA Special Flood Hazard Areas (100-year floodplains) are subject to mandatory flood insurance purchase requirements if the owner has a mortgage backed by a federally regulated lender. The flood zone designation must also be disclosed to buyers.

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