A new real estate rule in North Carolina now requires property owners to disclose information about previous flooding incidents to potential buyers. The rule, finalized by the North Carolina Real Estate Commission in March, is aimed at increasing transparency for homebuyers. Questions on the Residential Property And Owners’ Association Disclosure Statement form ask owners about flood damage, insurance claims, and current flood insurance policies.
North Carolina is the fourth state this year to implement flood disclosure reforms, following South Carolina, New Jersey, and New York. Environmental organizations like the Southern Environmental Law Center and the National Resources Defense Council pushed for these changes to provide upfront transparency about flood risks and potentially save homeowners money in the long run.
While some experts suggest climate change is increasing the risk of flooding, others disagree. The introduction of federal legislation by FEMA could establish minimum flood-risk reporting requirements for sellers, impacting states’ participation in the National Flood Insurance Program.
As the Midwest deals with flooding, North Carolina faces unusually dry conditions. The North Carolina Drought Management Advisory Council is urging drought response actions as parts of the state have experienced weeks without significant rainfall. These developments highlight the importance of understanding and preparing for both flooding and drought risks when buying or selling a home in North Carolina.
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