The NAR (National Association of Realtors) has propelled a state flood disclosure tracker, which, according to the trade group, will help to
“educate the public and Congress as it considers the Federal Emergency Management Administration’s (FEMA) legislative proposals to reform the National Flood Insurance Program (NFIP), including the unnecessary and misguided disclosure form proposal.”
NAR worked with the LRC ( Legal Research Center ) to compile information on existing state disclosure requirements. Its creation responded to the legislative proposal forcing different states to
“mandate a real estate-related disclosure form with specific flood-related questions”
for qualifying for the NFIP.
NAR added that
“all but one state would be required to make significant amendments to its laws and regulations, significantly increasing states’ administrative and enforcement burden for a limited benefit to homeowners, buyers, or renters.”
NAR cited data from the LRC. It determined that all 50 US states and the District of Columbia require disclosure of known material property conditions or essential facts that include flood damage.
NAR also emphasized that although initially, they opposed the disclosure form proposal of FEMA, they stood by the Flood History Information Act that would require FEMA to disclose the NFIP claims and disaster aid information straight to renters and property buyers.
“America’s 1.5 million realtors are in the business of streamlining processes to best serve all current and future homeowners across this country,”
Tracy Kasper (NAR President) said.
“The proposed legislation would add unnecessary red tape to an already complex purchasing and selling process. Our research has found that every single state has flood disclosure requirements, and there is no need to have federal government involvement in a practice that each state knows how to handle best. The proposed FEMA form would not be useful to buyers and duplicative for sellers, virtually having them check the same box on a different form.”
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