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Pass California

Practice and Disclosures, 25% of the examination

Natural Hazard Disclosure Statement (NHD)

The form disclosing whether a property sits in any of six mapped statutory hazard zones.

The six zones are a special flood hazard area, an area of potential flooding from dam failure, a very high fire hazard severity zone, a state fire responsibility area, an Alquist-Priolo earthquake fault zone, and a seismic hazard zone. A seller or agent who reasonably relies on a third-party expert's report is not liable for an error in it, which is why third-party NHD reports are universal in California practice.

See also

Transfer Disclosure Statement (TDS)The statutory form on which a seller of one to four residential units discloses the property's known condition.Alquist-Priolo Earthquake Fault Zoning ActCalifornia law prohibiting construction of structures for human occupancy across the trace of an active fault.

See it in a question

One question from Practice and Disclosures, so the term lands in the context the exam uses it in.

Practice and Disclosures ยท 25%Trust Account Management

A salesperson receives a $5,000 good-faith deposit check made payable to the seller. What must happen to it?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Practice of Real Estate and DisclosuresThe largest area by a wide margin, and the one most study plans leave until last. It is where trust accounts, fair housing, advertising, supervision, DRE discipline and every mandated disclosure live.25%Practise Practice and Disclosures50 questions on this area, every option explained.Practice

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