Must flood risk and past flooding be disclosed in real estate transactions?

It depends on where you live. Although there is no federal statute requiring property sellers to disclose information on flood risk or past flood damage, many states have real estate flood disclosure laws. These laws commonly require the seller and realtor to disclose if the property has flooding problems or sustained past flood damage; and if it is located in a FEMA-designated Special Flood Hazard Area or flood zone. In states without a disclosure requirement, some communities have enacted requirements of their own. Although realtors are obligated to pass on any info on past flooding/flood risk to prospective buyers, it’s important to note that oftentimes disclosure laws are based upon “seller knowledge,” i.e., the information that the seller passes along to their realtor, which may be incomplete. To find out about disclosure requirements in your area, search for state and local laws where you live or contact your local floodplain manager. A local example from Pinellas County, FL, is included below.