Fact or Fiction: Must the parties sign Information About Special Flood Hazard Areas?

July 01, 2023

My seller client provided the Seller’s Disclosure Notice (TXR 1406), which notes flood insurance coverage due to the property’s presence in a special flood hazard area. The buyer has already signed, acknowledging receipt of the disclosure. That means my client and the buyer must also sign the attached Information About Special Flood Hazard Areas (TXR 1414).

Fiction. Neither party is required to sign the Information About Special Flood Hazard Areas, even if a buyer has already signed 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.

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.

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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