Cary and Raleigh, NC Real Estate: Flood Plain Disclosure added to revised standard "Offer to Purchase and Contract" for 2008

By
Real Estate Broker/Owner with Realty Arts

Flood Plain issues cloud many North Carolina real estate transactions.

More often or not, all responsibility for determining whether a property was in a flood plain fell to the Buyer, and there was little remedy in the Contract if the property was determined to be in a flood plain.

Now, the 2008 revision of the Offer to Purchase and Contract brings some clarity to the Seller and Buyer. 

In Section 6,  the Contract requires the Seller and Buyer to agree that disclosure has, or hasn't, been made that any portion of the property is within a Special Flood Hazard Area.  

Let's say the Seller has not disclosed that the property is in a Special Flood Hazard Zone.  If the Buyer discovers between Contract and Close that any of the permanent improvements are within a Special Flood Hazard Zone according to the current FEMA flood map, or the Contract is subject to a loan condition and the Lender will require the Buyer to obtain flood insurance, the Buyer may have the right to terminate and receive a refund of all earnest monies.

This seems like a reasonable compromise, and good documentation to avoid surprises.  It will place a little more responsibility on the Listing Agent to perform due diligence prior to listing, and offer the Buyer some peace of mind.

In Cary, Raleigh, or other Wake County towns, the Wake County IMAPS system offers Special Flood Hazard Zone layers in the environmental layers. 

NC Floodmaps offers information in all other counties.

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Scan the QR Code with your Smartphone to Email MeQR CodeMike Jaquish, REALTOR®

919-880-2769 www.RealtyArts.com

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Independent Broker/Owner, Realty Arts

130 Towerview Court,

Cary, NC

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Anonymous
Anonymous
Anonymous
Good Morning Mike,
I am happy this has been included in the new Offer to Purchase.  In my location it is a big issue and getting the information up front (you cannot always tell by looking for sure!) is a good thing.
Nov 05, 2007 06:22 AM #1
Rainmaker
765,852
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Cynthia,

Agreed.

Overall, I think we have benefited from the longer Offer to Purchase and Contract form that has been brought to us.

Nov 05, 2007 06:33 AM #2
Rainer
71,677
Rita Taylor
None - Sanford, NC
Sanford NC Real Estate - Homes for Sale in Sanford North Carolina

Mike,

I like the new contract overall.  I can see some past lawsuits in part of it, though.  I have always thought it better to disclose any items that may affect the value of the property.  It just isn't worth the risk to try to hide something. 

Nov 08, 2007 10:57 PM #3
Rainmaker
765,852
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Rita,

I like it also.

We needed to have some items prompt us to respond, rather than leaving them on an optional form, the Additional Provisions Addendum.

Nov 09, 2007 05:46 AM #4
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Rainmaker
765,852

Mike Jaquish

919-880-2769 Cary, NC, Real Estate
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