Navigating Flood History Information Beyond the Seller's Disclosure
Louisiana REALTORS • April 8, 2021
Louisiana REALTORS® has partnered with the FEMA outreach and DOTD education teams to provide REALTORS® with helpful information regarding flood insurance, disaster preparation and recovery through our monthly
Flood Risk & Recovery Series. In April, FEMA and DOTD were joined by representatives from Baker Donelson to discuss Flood Risk & Flood Insurance Implications in the Louisiana Seller's Disclosure and how that relates to the Obtain & Maintain requirement. Please see below for a few highlights and FAQs that were addressed in the session.
Session Highlights:
- FEMA estimates that over 150,000 households in Louisiana require flood insurance
- The Obtain & Maintain requirement says that if a property owner receives federal financial assistance for a flood loss and the property is in a Special Flood Hazard Area, then the owner must obtain flood insurance (equal to the amount of FEMA Individual Assistance award) for the property, and insurance must be maintained regardless of change in ownership
- A seller MUST notify a buyer of the requirements to Obtain & Maintain on or before the date of property transfer
- Failure to notify could mean that the buyer may be ineligible to receive future assistance AND/OR that the seller could be responsible for reimbursing the Federal Government for any disaster assistance received by the buyer
- Even though it may not be required in the purchase agreement, the seller is still responsible for notifying of the Obtain & Maintain requirement through an addendum and in the active sale
Tips to Guide & Protect Your Clients:
| BUYERS | SELLERS |
|---|---|
| Get flood insurance, no matter what zone your desired home is in | If receiving a subsidized rate, transfer it to the buyer at closing |
| Do your own research: contact your floodplain administrator, review the home's title/deed for FEMA mitigation grants, review the disclosure and ask the local community | Consider mitigation projects that will reduce the flood risk, and in turn, reduce the premium before putting a property on the market |
| Request the seller's Elevation Certificate | Provide an Elevation Certificate |
| Inquire with seller about previous flooding and require a flood loss history from the seller | Disclose flood history and flood risk information |
| Know the waiting period before the policy will take effect, and see if the seller's policy can be transferred to you |
FAQs:
Association emphasizes lower monthly expenses, more housing options and practical relief for Louisiana families.
Want Your Teen to Own a Home Someday? Start Talking Money Now Teens may not be thinking about mortgage rates or down payments just yet, but the money habits they’re building now can follow them for years. And 88% of teens surveyed by Fannie Mae and Junior Achievement said they want to own a home someday. This week’s Consumer Guide: Talk to Your Teens About Money and Homeownership makes those conversations a little easier, covering everything from credit scores and budgeting to debt, renting versus owning and saving for that eventual down payment. So yes, you may have to interrupt the doomscrolling. But helping teens get smarter about money today could put them in a much better position to get the keys to a home of their own down the road. Download all of NAR’s Consumer Guides in English or Spanish at facts.realtor. For ease of reference, below is a list of the most recent guides: NEW: Teen Financial Literacy Fraud Red Flags Helping Family Members Become Homeowners Prepare Your Home for Hurricane Season Condominium Insurance Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. The next Consumer Guide, scheduled for publication on Oct. 21, will cover winter cold and storm preparedness.
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