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SD 1037

An Act enhancing homebuyer awareness by providing notice to persons purchasing property in a flood zone

194th Legislature (2025-2026) Introduced by Dylan Fernandes

The bill requires sellers, landlords, and real estate professionals to give a standard flood-zone disclosure form and known flood history to buyers or tenants before agreements.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 1037

Summary: Senate Docket No. 1037 / SD 1037

Title

An Act enhancing homebuyer awareness by providing notice to persons purchasing property in a flood zone.

Purpose and intent

This bill requires prospective buyers, lessees, and renters to receive standardized flood-zone information before completing real estate transactions or entering into rental agreements. It aims to improve homebuyer awareness of flood risks and flood insurance requirements by mandating disclosure of flood-related information and warnings.

Key provisions

  • Definitions (Section 70(a))

    • “FEMA” means the Federal Emergency Management Agency.
    • “Flood Insurance Rate Map” refers to FEMA’s flood insurance rate maps.
    • “Flood zone” means areas identified by FEMA as having flood risk.
    • “Owner” includes individuals or entities with legal title, control, or other recognized forms of ownership, but excludes a secured lender until possession is acquired.
    • “Premises” means any residential property or dwelling unit.

  • Notification form (Section 70(b))

    • The director of the Massachusetts Emergency Management Agency must prepare a standard notification form and related materials to inform prospective purchasers, lessees, and renters about flood hazards.
    • The form may address:
    • Past flooding on the premises, including frequency and damage claims through the National Flood Insurance Program or private insurance.
    • Whether the premises are in a Special Flood Hazard Area identified on the flood insurance rate map.
    • The FEMA flood zone designation and the accompanying risk description.
    • Whether the owner has ever been required to purchase flood insurance by a mortgagor.
    • Any obligation to maintain flood insurance due to federal disaster aid or loan programs.

  • Seller and real estate agent disclosure (Section 70(c))

    • Before accepting an offer, sellers must provide a copy of the notification form and related materials to the prospective purchaser.
    • For leases with an option to purchase, the same requirement applies to the lessee-prospective purchaser.
    • In addition, the seller and involved real estate professionals must disclose any known history of flooding and flood insurance.

  • Tenant disclosure (Section 70(d))

    • Before signing a tenancy agreement, owners must provide the notification form and materials to the prospective tenant.
    • A statement certifying receipt must be provided in two copies: one for the tenant and one for the owner; the tenancy agreement may incorporate this certification.

  • Enforcement and penalties (Section 70(e))

    • Violators are liable for damages caused by noncompliance.
    • Penalties may not exceed $1,000 per violation.
    • Violations by a person engaged in trade or commerce constitute an unfair or deceptive act or practice under the Massachusetts consumer protection law (Chapter 93A).
    • Real estate agents or brokers involved in a sale or rental are not liable for fraud committed by the owner.

Who is affected

  • Property owners and landlords
  • Sellers and real estate agents, brokers, or salespersons
  • Prospective buyers and tenants
  • Lessees with an option to purchase
  • The Commonwealth’s Emergency Management Agency (to develop and maintain the notification form)

Procedural/timeline aspects

  • Introduced: February 27, 2025
  • Legislative actions include: referral to the Committee on Financial Services and House concurrence on February 27, 2025
  • Status: House concurred (bill sent forward within the Legislature)

Potential impact

  • Enhanced transparency about flood risk and required insurance coverage for properties in flood zones.
  • More consistent disclosure practices in sales, leases, and rentals.
  • Possible compliance costs for sellers and real estate professionals, but clearer guidance to reduce dispute risk.
  • May influence property values and insurance considerations for flood-prone areas.

Compiled from official sources — confirm details with the bill’s official record.

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