ASFPM Testifies in Support of Flood Disclosure Bill in Maine
Legislators in Maine are considering a new law that would require sellers to disclose flood risk to potential buyers of residential or commercial properties. ASFPM Executive Director Chad Berginnis provided written testimony in support of the bill.
If the bill passes, Maine would join the roughly 30 states with flood disclosure laws. Under the Maine bill, sellers would have to notify buyers in writing whether the property is located in special flood hazard area, the presence and cost of any active flood insurance policy for the property, any previous flood damage incurred, any flood insurance claims filed, and any flood-related disaster aid received while the prospective seller owned the property.
Currently, Maine has a grade of F in the NRDC’s flood risk disclosure scorecard.
Last year saw New York, New Jersey, South Carolina, and North Carolina strengthening laws that require home sellers, and in some cases landlords, to disclose information about whether a home or apartment has flooded in the past and whether it is likely to flood in the future.
Disclosing flood risk information during real estate transactions enables homeowners to make better risk-informed investment decisions. Currently, no federal statutes require property sellers to disclose information about flood risk or prior flood damage.
ASFPM has long advocated for stronger flood risk disclosure laws and warns that the current patchwork approach means varying levels of effectiveness among different states and local jurisdictions. A national flood history disclosure requirement would ensure a consistent level of protection for buyers and renters, regardless of location.
James Nadeau of Portland-based Nadeau Land Surveys also provided testimony to support the bill during the Jan. 3 public hearing. His monthly newsletter, Welcome to the Flood Zone, is a favorite among ASFPM members.
