Environmental

A Washington commercial property is located in a FEMA-designated Special Flood Hazard Area. Federal law requires the buyer to:

APurchase private flood insurance only if the lender requires it
BPurchase flood insurance if obtaining federally-backed financing✓ Correct
CObtain a LOMA before purchasing
DDisclose the flood zone to subsequent buyers only

Explanation

The National Flood Insurance Program (NFIP) requires that properties in Special Flood Hazard Areas with federally-backed loans obtain flood insurance as a condition of the loan.

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