How to use the form for property in a special flood hazard area
12/19/2014 | Author: Editorial Staff
My client is selling a property that has flood insurance coverage because it’s located within a special flood hazard area. He noted the present coverage in the Seller’s Disclosure Notice (TAR 1406), signed the disclosure notice, and attached the Information about Special Flood Hazard Areas (TAR 1414) to the disclosure notice. The buyer then signed the disclosure notice, acknowledging receipt. Do the buyer and seller have to sign the information form, too?
Neither party is required to sign the Information about Special Flood Hazard Areas (TAR 1414). Because the information form was attached to the signed Seller’s Disclosure Notice (TAR 1406), an additional signature on the information form is unnecessary.
If the Information about Special Flood Hazard Areas is being provided separately from the Seller’s Disclosure Notice, it is a good idea to ask for a principal’s signature acknowledging receipt of the form. Even if the form was attached to the Seller’s Disclosure Notice, it’s still a good idea to ask any principal who has been given the form to sign the acknowledgement receipt. If the principal does not want to sign the form, the agent could note the delivery of the form in his or her file.
Note that the form should also be provided to buyers in situations where the seller isn’t required to provide a seller’s disclosure notice or where there is no flood insurance coverage on the property at the present time but there are concerns about the construction or location of the property related to special flood hazard areas.
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