What Does a Seller Have to Disclose About a Property’s Flood History?

Effective January 1, 2020, sellers must disclose actual knowledge or notice of any flood claims filed on the property. South Carolina law requires sellers of residential real property to provide buyers with a completed “Residential Property Disclosure Statement” prior to forming (ratifying) a contract to purchase/sell the property. (See footnote).

The South Carolina Real Estate Commission recently amended this form, effective January 1, 2020, to require this disclosure regarding flood claims.  The form requires sellers to disclose actual knowledge of defects, malfunctions, etc. concerning a number of aspects of the property they are trying to sell including but not limited to: water supply, roof, foundation, plumbing, electrical, tenants/leases, homeowner’s associations, building codes, and pest infestations.  While the previous version of this form required sellers to confirm whether the property is in a flood zone and whether the property is covered by flood insurance (still required in the new, amended form), sellers were not required to disclose the property’s detailed flood insurance/claims history.  Without that information, it can be hard for prospective buyers to know how risky and expensive it could be to own that particular property.  Certain state and federal privacy laws prohibit the government from disclosing a property’s flood insurance claim history to anyone other than the homeowner.

The South Carolina Real Estate Commission went further by amending the form to now include the disclosure requirement regarding flood insurance claims filed.  Worth noting, the form does provide space for “yes” answer explanations.

The new form  is required for any new listings, or any renewed listings, after the effective date of January 1, 2020.  You can access a PDF of the amended form here:  Property Condition Disclosure Statement