By Michael B. Gerrard, Edward McTiernan
A standard part of due diligence before real estate transactions is ascertaining whether the property is prone to flooding. The usual method has long been to rely on the 100-year old flood maps of the Federal Emergency Management Agency (FEMA).
Such reliance is highly misleading. FEMA flood maps can be seriously out of date. They also reflect only historic conditions, not future flooding as a result of sea level rise and extreme precipitation. Moreover, large parts of the United States are not mapped at all.
Fortunately, several private entities and a few local governments have begun providing flood vulnerability information that reflects anticipated future conditions. These allow lawyers, brokers and others involved in real estate transactions to give better advice to their clients about flood risks, and architects and builders to design buildings that are more resistant to floods. They will also assist parties in complying with emerging laws on the disclosure of flood risks.
Read the article The Perils of Relying on FEMA Flood Maps in Real Estate Transactions in Columbia Law School's Scholarship Archive.