Disclosure of Flood Zone Status

In Texas, sellers must disclose whether the property is located in a flood zone designated by FEMA. The Seller's Disclosure Notice includes a question about flood zone status. If you know the property has flooded before, you must disclose that as well. Buyers will likely verify the flood zone status with a flood zone determination. Be prepared to answer questions about past flooding, even if the previous flood happened before you owned the home.

If the flood zone designation has changed over the years, disclose that too. FEMA flood maps are periodically updated, and a property that was not in a flood zone when you bought it may be in one now. Provide any documentation you have about flood zone changes, flood insurance claims, or flood mitigation improvements.

Elevation Certificate

An elevation certificate documents the elevation of your home relative to the base flood elevation. If you have one, provide it to the buyer. It can help them obtain lower flood insurance rates. If you do not have one and the home is in a high-risk flood zone (A or V zone), consider ordering one before listing. The cost is typically a few hundred dollars but can be a valuable marketing tool.

Flood Insurance Transfer

Flood insurance is required by mortgage lenders for homes in Special Flood Hazard Areas. If the buyer is obtaining a mortgage, they will need flood insurance before closing. As a seller, you can transfer your existing flood insurance policy to the buyer, which may save them from a new policy waiting period. Check with your insurance provider about the transfer process. A smooth insurance transfer removes one more hurdle from the closing timeline.