California Code § 1103.2 et al. mandates that every Seller of a property, or his designated Agent, discloses ALL Natural Hazards that materially affect the value and desirability of a property to a prospective buyer. A Seller and/or his Agent is charged with a fiduciary duty to do DUE DILIGENCE regarding the completeness and accuracy of the disclosure information provided. Often this disclosure information is purchased from a Natural Hazard Disclosure Company (NHDC). The duty of a Seller and their agent to provide accurate disclosures to a Buyer cannot be waived or transferred to another party.
The Problem: The Agent chooses the NHDC that is the cheapest or the NHDC that is providing them or their broker with a kickback without regard to its accuracy or completeness. Buyers often get an inaccurate, incomplete report.
How does this affect the Buyer: By receiving this inaccurate or incomplete report, the Buyer: