Which statement best describes when the Natural Hazard Disclosure Statement is required?

• A. For all residential properties regardless of size.
• B. Only for one-to-four unit properties.
• C. Only for properties located in hazard zones.
• D. Never required.

Answer: (B)

The statement is testing understanding of when the Natural Hazard Disclosure Statement must be provided in California real estate transactions. The requirement applies to residential properties that contain one to four dwelling units—single-family homes, condos, townhomes, and similar properties. This means that in typical home purchases (up to four units), the seller must furnish the NHDS so the buyer is aware of potential natural hazard risks like wildfire, flood, or earthquake fault zones. Properties with five or more dwelling units aren’t covered by this disclosure rule, which is why the other options aren’t correct. It’s also not accurate to say the NHDS is never required or only needed if the property happens to be in a hazard zone—the law requires the disclosure for the eligible one-to-four unit properties, regardless of whether the property sits in a designated hazard area, with the hazard details shown if applicable.