Natural Hazard Disclosure Companies | What is an NHD in Real Estate

In compliance with the California state code law, the natural hazard disclosure provides a resource for new home buyers to find out about a property before they buy. Real estate disclosures can save you resources in time and money when looking to buy a house in California.

The real estate disclosure law pertains to all real property both residential and commercial. The NHD (natural hazard disclosure) report issues the standardized requirements of hazard zone disclosures. Example: Earthquake zones, fire zones, flood zones and other peripherals. The due diligence involved in the business is finding the best resource natural hazard disclosure companies available.

In an unregulated industry such as the California NHD real estate statement, there are litigious deficiencies involved. In obtaining a hazard zone disclosure report you need to have all the due diligence in place. The natural hazard zone disclosure statement cost should not be a factor in a company that does not supply the full property information needed.

Natural Hazard Disclosure Reports Discrepancies in Disclosures

What are the discrepancies between one real estate NHD report and another? Some zone reports provide only what the law mandates and nothing more. In this,  a 14 page documentation on a property vulnerability essay will not have near the real estate information on a 40 page natural hazard disclosure report. In identifying the anomalies in these real estate disclosure statements, there may be issues with non disclosures of:

• Endangered species areas:

Any property that is within the endangered species zones is regulated by the California real estate board. This may affect rehabilitation issues, groundwork, sewage and typical outdoor/garden repairs. There are other ordinances and requirements specific to the type of endangered species being encroached upon. Other factors may apply and change without notice to home owners. The capital in Sacramento is always looking at new issues involving climatic changes in respect to endangered species endangerment. New areas of proximity are constantly being monitored by state and federal resources in regard to saving existing habitat and wildlife.

• Proximity to commercial and industrial zones:
  

This properties may include gas stations, carcinogenic producing industrial waste zones and automotive, retail, industrial commercial runoffs and spills. If a property is within the range of the carcinogenic producing building a warning of such will be provided on the full coverage natural hazard disclosure report.

• Meagan Law:

Meagan’s Law sex offenders are typically provided in a separate documentation form provided by the natural hazards disclosures companies. The Meagan’s law report will provide an accurate account of perpetrators within any given distance of a real estate purchase. It is important to understand the governmental public information resourced can only provide the more recent information on released offenders at a given time.

• Methane gas zones:

Naturally occurring methane, asbestos and radon gas are higher in California than many other states. When buying a house it is important to know what locations were former, landfills, quarries and waste sites used in commercial excavation and digging. The methane gas zones can also be near farmlands, agricultural runoff areas and drainage of agriculture products. Asbestos that is naturally occurring in some geographic rock formations can be problematic when these areas are former mines. The asbestos as a dust particle is very problematic in these regions of excavation and land mining.

• Historic sites:

The proximity or defined location of a historic property zone can affect the renovation and rehabilitation codes on a house bought within a historic zoned area. Homes and commercial business properties withing the designated region will need to adhere to the historic nature of the area. This is typically the decision votes by the local municipality which reside the specific region. In this the statewide precursor to what can and cannot be done is decided locally. This means that you will need the municipality’s specific historic code violation criteria prior to buying the house.

• Coastal protection zones:

Coastal protection zones in California can reside in close proximity to major cities or municipalities.
In this the coastal regions need to adhere to a number of contingent real estate laws related to natural habitat, wildlife, waste disposal, recycling, run off drainage and watering lawns in drought areas. The coastal protection can also change in terms of what will be at risk within the municipality confines of the area.

• Oil & gas wells proximity to houses:

The proliferation of oil and gas wells in California presents a problem when buying a house for your family. The safety factor in living in these potentially toxic zones need to be addressed in the disclosure sources of the natural hazards disclosure companies. Former oil well proximity is as important as extraneous structures producing petroleum products. Former oil, gas and commercial petroleum waste areas can still have contaminants that can drain into agricultural areas and residential home locations. It is important especially for home owners with children to know what is and is not in the gardens, lawns and soil they play in and around.

• Local wind erosion areas:

Wind erosion areas can cause property damage and be a health hazard to families. High velocity winds can further erode the soil and lands surrounding houses and communities in a specific area. Relating to the former topic of methane and naturally occurring poisonous gas or substances can be propelled into residential areas in high velocity zones.

• Soil erosion hazards:

Soil susceptibility to erosion is dependent on a number of factors withing the terrain of California real estate. The accumulative affect of dry weather with rare quick flood seasons is furthered by man made issues is a recipe for rapid soil erosion. Areas and roads in the Rancho Palos Verdes area near Los Angeles are rapidly declining under quick soil erosion. This problem compounds itself as the wight of the loose soil unhinges the deeper membrane causing more cracks and declining ground pedigree.
The natural hazards disclosure companies that provide the full disclosure resource allow the new home buyer the due diligence in buying. There have been legal issues warranted in the form of non disclosure lawsuits. This can happen when the seller or the sellers agent provides a “flimsy report” if the buyer gets another full report, there can be issues. Basically the seller needs to make sure there is no potential legal recourse in the NHD real estate standardized statement.
This will ensure that “the first time around” both the seller and buyer have all the full due diligence that can be provided. We always use the industry standard natural hazards disclosures report from companies based within the state. Finding the best disclosure statement company means working with a firm that resides here and  has offices in downtown Los Angeles.

We have seen low cost natural hazard disclosure resources, but you are talking about saving $39 to save potentially the cost of your entire home! It has happened where new property owners have sought for full damages in compensation. In fact there was recently a luxury home in Southern California that was involved in a seller disclosure lawsuit of over $5M.
The main point here is, if you are a first time buyer looking at how to buy a house or a seasoned real estate investor, you want to know all the property information you can. The seller disclosure laws may lack the full regulations necessary so you need to be aware of how to buy a house with full natural hazard disclosure documentation.