Do real estate agents have a legal responsibility to disclose if a house is in a flood zone?

Question

If they do have that responsibility and do not disclose that information, is there any legal recourse?

Answer 1

IF the agent KNOWS the property to be in a flood zone, yes they should disclose however, in the normal course of a real estate listing - determining a properly is in a flood zone does NOT occur.

In the sellers disclosure, YES
In the process of obtaining an appraisal, YES
In the process of getting home owner's insurance, YES

All of the above do NOT involve the Realtor but the BUYER and SELLER.

Flood planes change, and sometimes if it is recent the Seller does not know. If the appraiser researched the records at the time and it was NOT it does not mean it can not change. Same for your insurance carrier.

Go to the County where the property is located and find out WHEN the property was deemed in a flood zone.

In order to obtain flood insurance, you will need an elevation certificate. These come from the companies that do surveys and some appraisers can do them.

Hope this helps,

Answer 2

It's possible that the real estate agent has the right to refuse the offer. If the seller has instructed the agent to not write or bother with offers below a certain price, then the real estate agent is within his rights to refuse. However, if the agent is making this choice on his own, then he's out of line.

Answer 3

Most agents would not know if your located in a flood zone, how would they know it's not part of their job to check out flood planes. All appraisals have a flood map in the report (its a requirement of the lenders). You would need to ask for a copy of the appraisal from your lender (it's your right to receive one) but most of the time you have to ask for it and would not receive it until after closing. This is a question you would need to ask the lender prior to closing. You can't ask the appraiser because they are not allowed to discuss the appraisal with anyone except the lender that ordered it (client) even if you the homeowner paid the appraiser, this law USPAP covered by federal law. The worst zone is zone A

Answer 4

Yes, what they did know or should have known has to be disclosed. As to legal recourse your real estate attorney should be able to help you on that one and will be based on what damage was incurred for the failure to disclose a known or should have known fact.

Answer 5

The agent does, assuming that they know about it. However, the buyer also has a responsibility to ascertain such facts from independent sources as part of their due dilligence. Any insurance agent can tell you if a property is in a 100-year flood plain, as would the lender since they'd require flood insurance.

Answer 6

Yes, real estate agents need to be honest. Being honest doesn't mean omitting information to the buyer. If this has happened to you, I would call a real estate lawyer and find out your rights. You may need to get the lender involved or the attorney general in your state.

Answer 7

Yes it is a material fact about the property. And you wouldn't want them NOT to disclose. It could cost you - the seller down the road.

Answer 8

Only if you ask . . . If you are referring to the U.S.A., then the information is readily apparent and available . . . the agent can't be held liable for someone not looking into the obvious.

Answer 9

No, it is not their job. Their job is to sell you an house and while they are not allowed to lie they won't tell you any of the bad stuff. This means in general that they are weasels who are not to be trusted. Your job is to make sure that searches and surveys are done to evaluate the condition of the house.

Answer 10

I believe YOU have to ask them first and then they are legally responsible to tell you.