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midnight_thunder t1_iu1ctyv wrote

Reply to comment by beowulf92 in New Jersey considering bill to warn tenants, homebuyers of flood risks on properties by vprasad1

Well you can’t get a mortgage without flood insurance if you’re in a flood zone. And the standard-form realtors contract contains a mortgage contingency provision (which no attorney would ever agree to remove). There are multiple barriers in the way of buying a home in a flood zone, unless you’re paying cash, which is not common.

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TheRealThordic t1_iu1e42n wrote

You're assuming the flood zone maps are up to date though, which they are not. Increased frequency of heavy rainfall added to continuous development leaving less open areas to absorb rainfall means flooding will only get worse and worse. There have been a number of significant flooding events in my town in recent years for houses that are not located within a flood zone.

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midnight_thunder t1_iu1l2kk wrote

Well you’re right about that. I think the flood maps are about to be updated soon. I believe they’re updated every 10 years.

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beowulf92 t1_iu1l6vl wrote

https://www.nrdc.org/flood-disclosure-map

There is no legal requirement in the state specifically for floods. I know a lawyer that has had homes go to the point of the buyer not knowing they'd need flood insurance until the mortgage lender comes back and tells them it'll be needed. Our flood data in the state is old and antiquated and that makes everything worse. Some things show up in the floodplain on the data, that actually aren't in it, and others show up outside it that really should be in it now. I can be as dodgy as I want about the severity of any flooding I've gotten in the past to make it seem not nearly bad enough for a prospective buyer to overlook the issue. I've seen it happen, and it's happened to my mom when she bought our house when I was younger.

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breadburn t1_iu67b13 wrote

Yep this happened to someone I know-- bought a house on a piece of property with a suuuper outdated FEMA map, found out the hard way. Apparently the neighbors knew it had flooded in the past but realtors asked them to stop telling that to prospective buyers. They were more or less misled, and that's terrible.

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Suspicious-Raccoon12 t1_iu2ubot wrote

No legal requirement for non professional sellers but wilful misrepresentation and omission is illegal in NJ under the consumer fraud act which covers real estate and the broker is liable. Bummer that this happened to your mom and not sure when it happened, but if it happened in NJ after 76 and she bought from a licensed broker she should have been protected. If you're buying from owners, all bets are off. So yes you can be dodgy but the broker can't

Also as someone who bought a home recently, nowhere near a flood zone or a source of water, a flood assessment was still required by the bank (even though the bank didn't require the appraisal and viewed it as a low risk mortgage). So today of you're buying through professionals and using a reputable mortgage lender, you should (extra emphasis on should) be covered

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