California Real Estate Practice Exam

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The Natural Hazards Disclosure Act is applicable for?

  1. Properties in coastal areas only

  2. Virtually all properties

  3. Properties built before 1978

  4. Commercial properties only

The correct answer is: Virtually all properties

The Natural Hazards Disclosure Act (NHDA) is a state law that requires sellers of real estate property to disclose any known natural hazards that may affect the property. The act applies to virtually all properties, which means that regardless of its location or type of property, the seller is required to disclose this information to potential buyers. Option A is incorrect because the NHDA is not applicable for properties in coastal areas only. Option C is incorrect because the age of the property does not determine its applicability for NHDA. Lastly, option D is incorrect because the act applies to all types of properties, including commercial ones.

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