New law would require realtors to disclose flood risk to potential property buyers

By Carol Bousquet, Maine Public

Legislators are considering a new law that would require that realtors disclose flood risk to potential buyers of residential or commercial properties.

Under current law, federally backed mortgages or properties that have received Federal Emergency Management Agency aid for flooding damage in the past must be covered by flood insurance.

But Judy East, state director of resource information and land use planning, said climate change is causing flooding in areas outside of federal flood maps.

“The special flood hazard areas are based on past flood events, not on future projections about sea level rise, storm surge, or torrential precipitation that we are seeing. So there could definitely be a flood risk outside of areas where flood insurance is mandatory,” East said.

Andy Cashman, a spokesperson for the Maine Association of Realtors, said purchase-and-sale agreements and current state law already cover such disclosures.

“Anything that would impact the usability, safety, or value of the property would have to be disclosed so we believe it is covered,” he said.

The state said 35 other states have realtor disclosure laws in place.

This article appears through a media partnership with Maine Public.