Flood Disaster Insurance Requirements Disclosure


The information presented on this website is believed to be accurate, but may not be a complete representation of the law and is not to be considered as specific advice on your real estate transaction from a professional. Every real estate transaction is different, consult an appropriate professional for advice on your particular transaction.

Sign Up To Buy The Realtor® Forms Package! »

Disclosure Description:

If seller previously received federal flood disaster assistance conditioned on subsequently obtaining and maintaining flood insurance, then the seller must notify buyer about any requirement to obtain and maintain flood insurance in accordance with applicable Federal law.
---

(a) General prohibition
Notwithstanding any other provision of law, no Federal disaster relief assistance made available in a flood disaster area may be used to make a payment (including any loan assistance payment) to a person for repair, replacement, or restoration for damage to any personal, residential, or commercial property if that person at any time has received flood disaster assistance that was conditional on the person first having obtained flood insurance under applicable Federal law and subsequently having failed to obtain and maintain flood insurance as required under applicable Federal law on such property.

(b) Transfer of property
(1) Duty to notifyIn the event of the transfer of any property described in paragraph (3), the transferor shall, not later than the date on which such transfer occurs, notify the transferee in writing of the requirements to—
(A) obtain flood insurance in accordance with applicable Federal law with respect to such property, if the property is not so insured as of the date on which the property is transferred; and
(B) maintain flood insurance in accordance with applicable Federal law with respect to such property.
Such written notification shall be contained in documents evidencing the transfer of ownership of the property.
(2) Failure to notifyIf a transferor described in paragraph (1) fails to make a notification in accordance with such paragraph and, subsequent to the transfer of the property—
(A) the transferee fails to obtain or maintain flood insurance in accordance with applicable Federal law with respect to the property,
(B) the property is damaged by a flood disaster, and
(C) Federal disaster relief assistance is provided for the repair, replacement, or restoration of the property as a result of such damage, the transferor shall be required to reimburse the Federal Government in an amount equal to the amount of the Federal disaster relief assistance provided with respect to the property.
(3) Property described
For purposes of paragraph (1), a property is described in this paragraph if it is personal, commercial, or residential property for which Federal disaster relief assistance made available in a flood disaster area has been provided, prior to the date on which the property is transferred, for repair, replacement, or restoration of the property, if such assistance was conditioned upon obtaining flood insurance in accordance with applicable Federal law with respect to such property.

(c) Omitted

(d) “Flood disaster area” definedFor purposes of this section, the term “flood disaster area” means an area with respect to which—
(1) the Secretary of Agriculture finds, or has found, to have been substantially affected by a natural disaster in the United States pursuant to section 1961(a) of title 7; or
(2) the President declares, or has declared, the existence of a major disaster or emergency pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), as a result of flood conditions existing in or affecting that area.
(e) Effective date
This section and the amendments made by this section shall apply to disasters declared after September 23, 1994.

Sources:
42 U.S.C. § 5154a




Our Services

Real Estate Comps

Real estate comparable sales report.

Price your home right - includes reports on similar recently sold homes, market trends, and much more...
Learn More

Photography

Photography.

Studies show you make more money and seller faster with pro photos. Order through homecoin - it's a no-brainer!
Learn More

Lockbox Rental

Real estate comparable sales report.

Don't risk the safety of your family & home with a combo box. Rent the industry standard electronic lockbox.
Learn More

Flat Fee MLS Listing

Create a flat fee MLS listing.

List your FSBO home on the local MLS for a low, flat fee. 100% online. On the MLS in 24 hours w/ unlimited photos.
Learn More

Free FSBO Listing

Free listing on the homecoin website.

Create a FREE listing on the homecoin website. We'll provide a short URL that you can use on marketing materials.
Learn More

Realtor® Forms

Realtor forms contracts and disclosures.

Buy the forms package that you need to complete your sale or lease transaction. No requirement to buy anything else.
Learn More