FREQUENTLY ASKED QUESTIONS (FAQ)

FAQ #1: What is a Zone Disclosure report and how does it differ from a disclosure form?

Our Zone Disclosure Reports are designed to assist sellers (and their agents) to disclose legally required information to a potential purchaser in a real estate transaction in an easy to understand, economical format. Buyers can rely on our information to help them make a more informed decision regarding the property being considered for purchase.

We include a prepared Natural Hazard Disclosure Statement with our report residential and commercial reports. This document delivers a summary of information contained throughout the report. After reviewing the information, sellers and agents can deliver the disclosure with complete peace of mind; knowing their report was prepared by qualified experts, thus shifting potential liability away from themselves. Blank forms (available through various sources) require the seller and/or agent to complete the document, and, if improperly completed, may expose the seller/agent to unnecessary liability.

FAQ #2: Why Disclose?

In 1997, Governor Wilson signed California Assembly Bill 1195, also known as the "Natural Hazard Disclosure Law", and it became effective on June 1, 1998. The law requires that the seller disclose any "material facts" that could possibly affect the following:

• the value of the property
• the ability to develop
• the safety of the occupants before the completion of the property sale.
  

California Assembly Bill 1195 specifically states that the responsibility for disclosure rests upon the seller or the seller's real estate agent. If a third party, such as Zone Disclosures, Inc., is used to provide the Natural Hazards Disclosure Report, it is the seller and/or seller's agents' responsibility to make sure the report was delivered, reviewed, and signed by the buyer prior to the close of escrow. The law also indicates that a California Association of REALTORS approved Natural Hazard Disclosure Form (NHD-11) must be provided to the buyer in all real property transactions.

Liability first and foremost. Real estate professionals are facing an ever-higher standard of disclosure within an increasingly difficult period of litigation. Fortunately, you can safely disclose all of the publicly available information pertaining to any residential or commercial property with our natural hazard disclosure products. Please see our reports page to find out which Zone Disclosure Report is best for you.

FAQ #3: What is the law in California?

California Civil Code 1103 states that the transferor or the transferor's agent must disclose the fact that the property is located in a natural hazard zone if either:

A) The transferor, or transferor's agent have actual knowledge that the property is located within any of the statutorily defined natural hazard zones or areas (earthquake fault zone, seismic hazard zone, special flood hazard area, area of potential flooding, very high fire severity zone, wild land area that may contain substantial forest fire risks and hazards).

B)  The local jurisdiction has compiled a list by parcel (or map) that identifies the properties located within the zone or area and a notice has been posted at the office of the County Recorder, County Assessor, and County Planning Agency that identifies the location of the maps and lists.

Required Disclosure Information

Flood Hazards

A "Special Flood Hazard Zone" identified by the Federal Emergency Management Agency
An "Area of Potential Flooding" shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code

Wildfire Risks

A "Very High Fire Hazard Severity Zone" pursuant to Section 51178 or 51179 of the Government Code
A "Wildland Fire Area" pursuant to Section 4125 of the Public Resources Code

Geologic Hazards

An "Earthquake Fault Zone" pursuant to Section of 2622 of the Public Resources Code (Alquist-Priolo Special Studies Zones)
A "Seismic Hazard Zone" pursuant to Section 2696 of the Public Resources Code (Earthquake Induced Landslides or Liquefaction areas)

FAQ #4: Why Zone Disclosures, Inc.?

Zone Disclosures, Inc. is one of the industry's premiere providers for natural hazard, environmental hazard, special taxes and property loss insurance information. As a seller (or seller's agent) we can assist you to safely comply with statutory requirements for your area. Homebuyers can receive peace of mind due to our reputation for the highest level of quality by providing the most accurate and prompt reports the industry has to offer. If a problem surfaces after the closing, we'll be there to assist you.   

Here are additional reasons why Zone Disclosures, Inc. is an industry leader.

• Our long history of dedication and service.
• Additional disclosure information available (Mello-Roos, Megan's Law, Military Ordinance, Airport Proximity, Toxic Mold, Radon, Special Taxes, and Property Loss Insurance Information Services ).
• Consumer Information Publications and forms available at no additional charge (Earthquake Safety, Lead Based Paint, Toxic Mold, and Environmental Hazards).
• Locally identified natural hazards.
• Proven service track record and client satisfaction.