California Sellers: What You Need To Know About NHD Reports

If you’re selling a home in California, then you will be required to provide a Natural Hazard Disclosure (NHD) report to your buyer before closing. NHD reports provide a full account to buyers about what kinds of natural hazards might affect them after they buy a home. These reports have been required since 1998. But what exactly is contained in an NHD report, and why are they important for both buyers and sellers? Let’s take a closer look.

What is an NHD report?

In a nutshell, a Natural Hazard Disclosure (NHD) report outlines whether or not a property in California is located within an area with known hazards. These hazards can include wildfires, earthquakes, tsunamis, flooding, dam inundation, radon gas exposure, toxic mold, environmental contamination, airport influence, and military ordinances. It also includes whether or not the area borders a known fault line. 

Why is it required in California?

In California, real estate agents are required by law to provide NHD reports to their clients. Buying a home — especially in California — is a big investment. The requirement that all buyers receive an NHD report ensures that they fully understand the potential natural hazards that may affect the home in the future. Buyers can then assess the risk of purchasing the home so they can take steps to prevent damage and/or secure additional insurance coverage. The report doesn’t just protect the buyer, though. It can also help to protect the seller from liability should damage occur after the sale is complete. Sellers will not have to worry about being sued later by the buyer for failure to disclose any potential natural hazards associated with the property.

When does the seller present the report?

NHD reports are a part of the closing process in any California real estate transaction. According to state ordinance, sellers provide the report to buyers at the time of the property inspection. This gives buyers a chance to examine the report and determine their risks before getting to the closing table.

How do I get a report for my home?

It’s easier than ever to get an NHD report for your home! Agent Disclosures specializes in providing NHD reports to sellers and their agents. These reports are delivered via email and you will be notified when your report is ready to download.

What are the costs?

There are a variety of reports available for both residential and commercial properties. Prices range from $74.95 to $109.95 depending on the type of report and what it includes. Agent Disclosures accepts a variety of payment options. These include paying through escrow, check, or through our online payment system. Be aware that should the sale fall through, no payment will be expected. You only pay for your report once the property has been sold.

How do I get started?

Are you ready to get an NDH report for your property? Then contact the experts at Agent Disclosures or Agent inc. at 949-791-8160 or [email protected] to get started. Let’s open your world to new possibilities!