Land Use & Zoning
In Rhode Island, a flood zone designation on a property affects real estate because:
AIt prohibits any development in the flood zone
BIt may require the buyer to purchase flood insurance as a condition of obtaining a mortgage✓ Correct
CIt automatically reduces the assessed value of the property
DIt makes the property ineligible for title insurance
Explanation
Properties in designated Special Flood Hazard Areas (SFHA) require flood insurance as a condition of obtaining a federally backed mortgage. Flood insurance is administered through the National Flood Insurance Program (NFIP).
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