N.C. Real Estate Commission moves forward with proposed new rule on flood disclosure
The North Carolina Real Estate Commission voted unanimously at their Feb. 15 meeting in Raleigh to move forward with a potential new rule that will add flood-related questions to the disclosure form that sellers must provide to potential buyers.
The move is the result of a petition that was filed in December 2022 by the Southern Environmental Law Center (SELC) on behalf of the Natural Resources Defense Council, North Carolina Justice Center, equity-advocacy group MDC Inc., the North Carolina Disaster Recovery and Resiliency School, the Robeson County Church and Community Center, and NC Field, an advocacy group for more inclusive communities.
The proposed questions include whether a home has previously had flood damage, whether it has a FEMA elevation certificate, and the cost of any associated flood insurance policies. There are also proposed questions regarding whether a damage claim has been filed through the National Flood Insurance Program, and whether a property owner has received federal funds in the past due to flooding damage.
Currently, the state of North Carolina requires home sellers to disclose whether a home is in a flood zone, and if a property is required to buy flood insurance. In Dare County, area-specific flood zone maps are available to the public via the Dare County website.
Per a press release from the SELC, these proposed disclosures have bipartisan support, with more than 80 percent of North Carolinians in favor of strengthening the state’s disclosure requirements in terms of flooding risks.
A public hearing by the Real Estate Commission will be held on the new rule change, and the new disclosure guidelines could go into effect as soon as July 1, 2023.
It is a real shame that agents only reported the bare minimum information to their clients leading to the modification of the disclosure form. While anecdotal my experience is most visitors have no idea that the villages flood and almost refuse to believe the flooding comes from the sound more often than the ocean. Nor do they believe the depths I tell them. This is one of those issues I am sure the agents dance around hoping not to give direct answers. With the buying frenzy of the last few years I am certain the buyers did not ask a lot of questions for fear of missing out. I’ll add that even though the flood claims for a property are on the flood insurance paperwork that too may not have to be disclosed and it may also be deflected by the agent or ignored by the buyer. At least requiring disclosure puts the seller, buyer and agent on the hook for responsibility.