Did you know that... An REO lender is exempt from the requirement of providing an NHD Statement... (Cal. Civ. Code § 1103.1(a)(2)...but is not exempt from other provisions of California law requiring a seller to disclose that a property is located in any of six natural hazard zones?

A seller or real estate agent involved in the transfer of real property ... may be liable for failing to disclose material facts affecting the value or desirability of the property. Whether or not a particular fact is "material" depends on a variety of factors. Many sellers and real estate agents resolve such doubts in favor of disclosure to minimize exposure to liability

Disclosure Requirements for REO Property

Area of Potential Flooding
Earthquake Fault Zone
Flood Disaster Disclosure Requirements
Megan's Law
Special Flood Hazard Area
State Responsibility Area (Fire Hazard Area)
Seismic Hazard Zone
Very High Fire Hazard Severity Zone