Buying a home is usually the largest investment most Americans make. Expect a whirlwind of unexpected emotions, a lot of "hurry-up-and-wait", and a mountain of paperwork. And while every piece of paper requiring you to sign on the line is important, there are only two documents under the California Civil Code that give the buyer the right to walk away from the deal and take their deposit with them, they are:

  1. The Real Estate Transfer Disclosure Statement (TDS).
  2. The Natural Hazard Disclosure Statement (NHDS).

It is important to understand the value of timely receiving / providing and relying on a complete and accurate NHDS, and the danger of accepting a substandard NHDS into your transaction in this unregulated industry.

The NHDS, pursuant to California Civil Code 1103 et seq., is a legally required disclosure form in most California residential real estate transactions, which the seller and the seller's agents are obligated to provide to the buyer. It gives the buyer information about items that could negatively affect the value and desirability of his/her property and in some cases could seriously affect the insurability of the property. The NHDS can be prepared by a third party NHD report provider, and the liability will shift to them so long as you first exercise good faith in your selection of the third party NHD report provider under California Civil Code Sections 1103.4 and 1103.7. But since the NHDS industry is unregulated, and since the state of that non-regulation does not require NHD report providers to carry errors & omissions insurance to protect them or you, how can you choose the best? Here are a few things to consider in choosing a NHD report provider:

  1. Has the third party NHD report provider been sued repeatedly for the content (or lack thereof) in their reports?
  2. Have you compared the differences in NHD report providers?
  3. Does the third party report provider includes "advisories" instead of site-specific disclosures?
  4. Have you compared the Terms and Conditions sections?
  5. Have they changed ownership and failed to assume liability for their old reports?

Securing the answers to these questions is essential. Knowing the differences in NHD report providers is security for you. The NHD report is critically important, and all NHD reports are different. Choosing the wrong NHD report provider in this unregulated industry could be costly.


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Please call us at 1-800-626-0106 or email us.

  • The Property I.D. Report is the most accurate and comprehensive NHD report available
  • Committed to a single mission for over 30 years: Disclose with Confidence!
  • Ordering the most comprehensive and accurate NHD report available could save you a great deal of time, money and stress: Choose Property I.D.!
  • Choose Property I.D., the most comprehensive and accurate Natural Hazard Disclosure Report
  • California Jobs Company! The Property I.D. NHD Report is always made in California for you!
  • Know the differences in NHD report providers and confidently choose Property I.D.
  • Property I.D. has been helping investors and developers realize their success in real estate for over 30 years.