A new real estate regulation requiring homeowners in North Carolina to disclose flood-related information to potential buyers went into effect on Monday. The rule, finalized by the North Carolina Real Estate Commission in March, now appears on the Residential Property and Homeowners Association Disclosure form. Homeowners must complete the disclosure before any purchase offers.
Some of the flood-related questions ask homeowners about property damage caused by floods, previous insurance claims for flood damage, and the presence of current flood insurance coverage. North Carolina is the fourth state to take steps this year to increase transparency about a property’s flood history and risk. Similar disclosure reforms prioritizing transparency for home buyers have been seen in South Carolina, New Jersey, and New York.
The Southern Environmental Law Center, along with other environmental advocacy groups, pushed for flood-related questions to be added to the real estate disclosure form, emphasizing the importance of informing potential buyers about flood risks to help mitigate long-term damages and save money in the future.
Officials at the Southern Environmental Law Center and the Natural Resources Defense Council (NRDC) highlighted the increasing risks of flooding due to climate change, linking the issue to rising sea levels and more frequent and severe storms. However, some experts question these claims. Despite this, both environmental groups are known for opposing the use of fossil fuels in favor of cleaner and more reliable energy sources like nuclear power.
FEMA recommended federal legislation earlier this year to establish minimum flood risk reporting requirements for sellers. The proposed federal regulation would require states to follow guidelines to continue participating in the National Flood Insurance Program.
While the Midwest faces flooding issues, North Carolina is experiencing abnormally dry conditions. The North Carolina Drought Management Advisory Council is urging drought response actions as parts of the state have gone weeks without significant rainfall.
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