Land Use & Zoning

A South Dakota property in the 100-year floodplain is being sold. The seller is required to:

ADisclose the flood zone designation as a material fact✓ Correct
BAutomatically lower the price by 20%
CPurchase flood insurance before selling
DObtain FEMA certification before listing

Explanation

Flood zone designation is a material fact that must be disclosed to buyers. If financed with a federally backed mortgage, the buyer will be required to purchase flood insurance for properties in SFHAs.

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