Form 314 – Natural Hazard Disclosure Statement

The article discusses the use of the Natural Hazard Disclosure Statement (NHD).

A full copy of the form is available here so you can follow along with the instructions.

Preparing the Natural Hazard Disclosure (NHD)

The following instructions for the preparation and use of first tuesday Form 314, the Natural Hazard Disclosure Statement, commonly called the NHD. Form 314 is legislatively worded and mandated for preparation either by the seller and his listing agent or a third-party provider selected by them to act on their behalf to investigate the records with the local planning department. Before using an NHD prepared by a third-party provider, the seller and listing agent must review its contents for errors or inaccuracies known to them to exist in the provider’s report.

The instructions correspond to the provision in the form bearing the same number. The following are instructions for Form 314.

Identification: Date: Enter the date and name of the city where the NHD is prepared. This is the date used to identify this document.
Facts: Underlying agreement: Check the appropriate box to indicate the agreement to which the NHD is attached as an addendum. Enter the date and location which identifies the underlying document to which the NHD is attached. Enter the names of the parties to the underlying agreement and a common or legal description of the property involved.
Natural Hazard Disclosure Statement:
1.	Special Flood Hazard Area: Check the appropriate response to indicate whether the property is known to be located either within [Yes ___] or outside [No ___] this hazard area. If it is unknown to the seller, listing agent or third-party provider preparing the NHD form whether the property is located within or outside this hazard area, AND this hazard information relating to the property is not available from the local or county planning department, check the remaining response [Do not know ___].
2.	Area of Potential Flooding: Check the appropriate response to indicate whether the property is known to be located either within [Yes ___] or outside [No ___] this hazard area. If it is unknown to the seller, listing agent or third-party provider preparing the NHD form whether the property is located within or outside this hazard area, AND this hazard information relating to the property is not available from the local or county planning department, check the remaining response [Do not know ___].
3.	Very High Fire Hazard Severity Zone: Check the appropriate response to indicate whether the property is located within [Yes ___] or outside [No ___] an area designated as subject to this hazard.
4.	Wildland Area with Fire Hazards: Check the appropriate response to indicate whether the property is located within [Yes ___] or outside [No ___] an area designated as subject to this hazard.
5.	Earthquake Fault Zone: Check the appropriate response to indicate whether the property is located within [Yes ___] or outside [No ___] an area designated as subject to this hazard.
6.	Seismic Hazard Zone: Check the appropriate response to indicate whether the property is known to be located within either a landslide zone or liquefaction zone [Yes ___] or is known to be located outside these zones [No ___]. If it is unknown to the seller, listing agent or third-party provider preparing the NHD form whether the property is located within or outside this hazard area, AND this hazard information relating to the property is available for lack of a map yet to be released by the state, check the remaining response [Map not yet released ___].
Signatures: Buyer’s Certification: Enter the date the buyer signs the NHD statement. Obtain the buyer’s signature. Seller’s Certification: Enter the date the seller acknowledges the information contained in the NHD statement is correct. Obtain the seller’s signature. Seller’s Agent: Enter the date the seller’s agent acknowledges the information contained in the NHD statement is correct. Enter the name of the seller’s broker. Obtain the agent’s signature.
Representations: Preparation Acknowledgement: Check one box only. Check the first box to indicate the seller or the listing agent prepared the NHD based on their knowledge and review of the county planning parcel list for hazards affecting the property. Check the second box to indicate a third-party provider prepared the NHD based on the third-party provider’s review of public records about these hazards AND that the information provided has been reviewed by the seller and the listing agent for any errors or inaccuracies in the information known to them. Third-party Disclosure Provider: Enter the name of the third-party provider who prepared the NHD. Seller Representations: Obtain the seller’s signature and date the NHD statement is signed.