Understanding the Natural Hazard Disclosure (NHD)

The Natural Hazard Disclosure (NHD) can look like a large and somewhat overwhelming document when you first receive it, but much of it consists of standard information and explanations. Its purpose is to provide the buyer with important information about the property and its location.

When Will You Receive the NHD?

Once escrow is opened, the NHD is typically ordered and often arrives within the first few days of the transaction. Timing can vary, but receiving the report early in escrow gives the buyer time to review the information and ask questions before moving further through the transaction.

What Is a Natural Hazard Disclosure?

The NHD is a third-party report that identifies whether the property is located within certain designated natural hazard areas, such as flood, fire or earthquake zones. Depending on the report and provider, the NHD package may also include information regarding Mello-Roos and other property-related taxes or assessments.

The report is typically ordered and paid for by the seller and provided to the buyer as part of the disclosure process. This gives the buyer important information to review and helps document that the report and its disclosures were provided during the transaction.

Take the Time to Review

Buyers should review the NHD carefully rather than simply signing or acknowledging receipt. If something in the report raises a question or concern, the NHD provider or another appropriate professional is the best resource for additional information or clarification.

The NHD does not replace the seller’s other disclosure obligations, and real estate agents should not be relied upon to interpret specific hazard determinations or advise what a particular finding may mean for the property.

The important thing is to read the report, ask questions, and make sure you are comfortable with the information provided before moving forward.

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