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Selling a House

What is an NHD report in Real Estate?

Even though nhd real estate report is not required by law in most areas, it can provide valuable information to both you and potential buyers.

Madison Clifton
Jul 29, 2019

Thinking of selling your home? Be sure to check if an NHD real estate report is required. While this may seem like just another task to add to your list, it provides important information to buyers and is legally required in some areas. Make sure you’re prepared if your area requires one, and maybe consider getting one even if it doesn’t.

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What is an NHD?

An NHD real estate report or natural hazard disclosure, is an evaluation to see if a house is within a designated hazard area. The information found from this report is extremely beneficial to buyers, while also protecting you. This report protects sellers by limiting their liability in the transaction. Thus reducing potential hassles later on, and overall allowing for a seamless transaction. The hazards that all reports will specifically look for are:

  • Special Flood Hazard Area – high risk for flooding 
  • Dam Inundation – area downstream of a dam that would be flooded if something were to happen to the dam
  • Very High Fire – fires that start are likely to be highly dangerous 
  • Wildland Fire – risk of fire in natural areas surrounding the house 
  • Earthquake Fault Zone – area of complex deformation in land 
  • Seismic Hazard – probability an earthquake will occur 

The following hazards are commonly reported on as well. Including the evaluation of these hazards is at the discretion of the company performing the NHD.

  • Radon Gas Exposure – likeliness of exposure to radiation
  • Airport Influence Area – pollution, loud noise, and shaking of buildings that can occur with close proximity to an airport
  • Meagan’s Law Disclosures – evaluation if any sex offenders live in the community where the house is located 
  • Military Ordnance – presence of military and weapons in area

The seller must purchase the natural hazard disclosure report. They cost approximately $125 per report. The actual price you pay, as well as if any other disclosures are included in the report, will be determined by the company you purchase the NHD report from.

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When an NHD Report in Real Estate is Required

A natural hazard disclosure report is required for every home being sold in California, parts of Arizona, or in a known hazardous area. California law mandates natural hazard disclosure reports regardless of where in the state the home is located. The seller and agents involved in the deal are legally required to give the information found in the NHD to the buyer. The buyer then has 3 days after receiving the NHD to back out of the deal if they are not satisfied with the outcome of the report. 

Even if a natural hazard disclosure report is not required, it may still be a good idea to get one. It provides valuable information that buyers will appreciate for a considerably small fee.
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