FREQUENTLY ASKED QUESTIONS (FAQ)
What is a Zone Disclosure report and how does it differ from a disclosure form? Back to Top
Our Zone Disclosure Reports are designed to assist sellers (and their agents) to disclose legally required information to a potential purchaser in a real estate transaction in an easy to understand, economical format. Buyers can rely on our information to help them make a more informed decision regarding the property being considered for purchase.
We include a prepared Natural Hazard Disclosure Statement with our residential and commercial reports. This document delivers a detailed summary of the legally required information throughout the report. After reviewing the information, sellers and agents can deliver the report with complete peace of mind; knowing their report was prepared by qualified experts, thus shifting potential liability away from themselves. Blank forms (available through various sources) require the seller and/or agent to complete the document, and, if improperly completed, may expose the seller/agent to unnecessary liability.
What is the law in California? Back to Top
Civil Code §1103.3 requires sellers to provide even prospective transferees natural hazard disclosures as soon as practicable, before the offer is made. So, we recommend that our clients order a disclosure report at the time of listing.
Required Disclosure Information:
Flood Hazards
A "Special Flood Hazard Zone" identified by the Federal Emergency Management Agency
An "Area of Potential Flooding" shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code
Wildfire Risks
A "Very High Fire Hazard Severity Zone" pursuant to Section 51178 or 51179 of the Government Code
A "Wildland Fire Area" pursuant to Section 4125 of the Public Resources Code
Geologic Hazards
An "Earthquake Fault Zone" pursuant to Section of 2622 of the Public Resources Code (Alquist-Priolo Special Studies Zones)
A "Seismic Hazard Zone" pursuant to Section 2696 of the Public Resources Code (Earthquake Induced Landslides or Liquefaction areas).
Why Disclose? Back to Top
The law requires that the seller disclose any "material facts" that could possibly affect the the value of the property; the ability to develop, or the safety of the occupants before the completion of the property sale.
California Assembly Bill 1195 specifically states that the responsibility for disclosure rests upon the seller or the seller's real estate agent. If a third party, such as Zone Disclosures, Inc., is used to provide the Natural Hazards Disclosure Report, it is the seller and/or seller's agents' responsibility to make sure the report was delivered, reviewed, and signed by the buyer prior to the close of escrow. The law also indicates that a California Association of REALTORS approved Natural Hazard Disclosure Form (NHD-11) must be provided to the buyer in all real property transactions.
Liability first and foremost. Real estate professionals are facing an ever-higher standard of disclosure within an increasingly difficult period of litigation. Fortunately, you can safely disclose all of the publicly available information pertaining to any residential or commercial property with our natural hazard disclosure products. Please see our Reports page to find out which Zone Disclosure Report is best for you.
What does each one of your reports include? Back to Top
Zone Disclosure Report™ - The Zone Disclosure Report provides the legally required “Natural Hazards Disclosure” that sellers and their agents are required to provide to the buyer in accordance with California Civil Code §1103.4. Report also includes City/County Natural Hazard Disclosures, Supplemental Disclosures, Notice of Special Tax and Assessment (Mello-Roos and 1915 Bond Act Assessments). The Zone Disclosure Report is comprehensive and complies with Federal, State, and local California disclosure requirements.
Zone Disclosure REO Report™ - The Zone Disclosure REO Report is the basic State-Mandated Natural Hazard Disclosure Statement that sellers and their agents are required to provide to the buyer in accordance with California Civil Code §1103.4. Report DOES NOT include City/County Natural Hazard Disclosures, Supplemental Disclosures, Notices and Advisories, and Notice of Special Tax Assessment (Mello-Roos and 1915 Bond Act Assessments).
Zone Disclosure Commercial Report™ - The Zone Disclosure Commercial Report provides the legally required “Natural Hazards Disclosure” that sellers and their agents are required to provide to the buyer in accordance with California Civil Code §1103.4 for commercial and industrial property transactions. Report also includes Federal, State and local City/County level Natural Hazard Disclosures, Supplemental Disclosures (Military Ordinance, Airport Influence, Commercial/Industrial, Megans Law, Toxic Mold, Radon, Methane, and other disclosures), Notice of Special Tax and Assessment, Zone Disclosure Enviro Report and A Commercial Property Owners Guide to Earthquake Safety.
Zone Disclosure Enviro Report™ - The Zone Disclosure Enviro Report discloses the most up to date environmental data available impacting a property in accordance with ASTM Standards. Depending on the location of the property, the Zone Disclosure Enviro Report includes National Priorities Sites (NPL); CERCLIS; Leaking Underground Fuel Tank Sites (LUFT); SWIS sites; Spills, Leaks, Investigation and Cleanup List (SLIC); Active Annual Workplan List (AWP); and additional items such as instances of Perchlorate contamination, oil and gas drilling wells, and schools with possible hazardous material contamination.
Zone Disclosure Tax Data Report™ - The Zone Disclosure Tax Data Report is comprehensive and includes all legally required tax disclosure items, i.e. Mello-Roos and Special Assessments (1915 Bond Act). The report is an expanded report available through Zone Disclosures, Inc. that provides additional tax items which home buyers can obtain or home sellers can opt to provide as a supplement. The additional tax items included in the Zone Disclosure Tax Data Report are Direct Assessments, Ad Valorem Taxes (which are subject to change based on the purchase price of the property), and the calculation of any relevant Private Transfer Taxes.
Zone Disclosure A-Plus Property Report™ - Zone Disclosures, Inc. is an authorized distributor of the A-Plus Property Report® prepared by Insurance Services Office (ISO). This report covers the 5 year insurance loss history of a residential property. The A-Plus Property Report® aids California sellers in meeting their contractual requirement (Section 7B of the Residential Purchase Agreement) and buyers in obtaining more information about the home they are purchasing. ISO’s A-PLUS Property Database is the most comprehensive available today. Contributing insurance companies represent over 95% of direct written premiums in the United States. A-PLUS Property Reports® are a vital tool in evaluating insurance loss history for residential property that provide a reliable mechanism for identifying potential risk factors in property transfers.
What makes your reports so accurate? Back to Top
Zone Disclosures, Inc. utilizes state-of-the-art GIS computer technology combined with Federal, State and local City/County Maps, to assist our staff in creating the most accurate, easy to use disclosure products the industry has to offer. Our report mapping is accurate to under 12-inches, making it the most precise measurement available in the industry.
Why Zone Disclosures, Inc.? Back to Top
Zone Disclosures, Inc. is one of the industry's premiere providers for natural hazard, environmental hazard, special taxes and property loss insurance information. As a seller (or seller's agent) we can assist you to safely comply with statutory requirements for your area. Homebuyers can receive peace of mind due to our reputation for the highest level of quality by providing the most accurate and prompt reports the industry has to offer. If a problem surfaces after the closing, we'll be there to assist you.
Are you a qualified disclosure provider? Back to Top
Yes. Zone Disclosures, Inc. is an acknowledged disclosure provider endorsed by the ©CAR, California Bankers Association, the State Environmental Assessors Office, and California Environmental Protection Agency. We have maintained our reputation as a versatile professional practice by adapting to change and growth, and by maintaining strong client relations through consistent and dependable project performance. We continue to expand our disciplines to best serve our existing and future clients. We take special care to maintain our reputation for the highest level of quality by providing the most accurate and prompt results possible, thereby allowing our clients to make prudent timely decisions regarding their environmental concerns.
What are your target markets? Back to Top
Our specific target markets include real estate professionals, title companies, escrow companies, home sellers, bankers, insurers, developers, appraisers, lawyers, REO’s and HUD.
When should I order a Zone Disclosure Report? Back to Top
California Civil Code §1103.3 requires sellers to provide even prospective transferees natural hazard disclosures as soon as practicable, before the offer is made. So, we recommend that our clients order a disclosure report at the time of listing.
Just obtain your Zone Disclosure report as soon as you take the listing (Zone Disclosures, Inc. doesn’t charge for the report unless there is a successful closing). Keep an electronic copy of the report and email it to prospective transferees.
How much do your reports cost? Back to Top
Zone Disclosure Report™ - $79.95
Zone Disclosure REO Report™ - $29.95
Zone Disclosure Commercial Report™ - $79.95
Zone Disclosure Enviro Report™ - $79.95
Zone Disclosure Tax Data Report™ - $24.95
Zone Disclosure A-Plus Property Report™ - $19.95
How long does it take to receive a report? Back to Top
Paperless reports are delivered electronically by email within 24 hours or less and hard copies are sent via next day messenger, and could take up to 24-48 hours to arrive after the order is placed.
Will there be a charge for the report if the property falls out of escrow? Back to Top
No, payment is only required if the property sells and closes escrow. Your success is ours. You are required to notify Zone Disclosures, Inc. if the property falls out of escrow. In addition, we send periodic status of payment requests to you and escrow to assist you with keeping up with the payment process in case the report is not paid out of escrow (i.e. escrow cancelled and transferred, escrow forgot to pay, escrow paid wrong disclosure company, etc.).
When I sell my home, can I use the report I purchased when I bought it? Back to Top
No, the maps used in creating our Zone Disclosure Report’s are constantly changing. Furthermore, our reports are only insured for the original transaction for which they were produced.
Do you have insurance coverage? Back to Top
Yes. We carry full professional liability insurance and offer zero deductible insurance coverage for every report, unlike other disclosure companies that charge a $75,000 deductible.
What if I can’t find the answers to my questions here? Back to Top
Zone Disclosures, Inc. is a leader in customer service. We have knowledgeable service and technical support, which can assist you with any issue or question you may have. Do you have a question about your report? Unclear about what the disclosures in your report mean? We have the answer right on this web site. If you still want to know more, call our customer service team at (800) 823-3587 and they will be more than happy to answer your questions.