Signed on September 22, the bill (A.1967/S.5400) establishes a flood risk “right to know” for homebuyers.

Previously sellers could opt that the buyer get a $500 credit at closing and the disclosure requirement was waived. This legislation eliminates the “credit provision” and requires the disclosure of information concerning flood risk, flood history, and flood insurance on real property transactions.

This bill removes the option of the seller to give a $500 credit to the purchaser for the failure to fill out the disclosure form.  The effective date of the bill is March 20, 2024.  Therefore, after that date, the $500 credit will no longer be available.

See the bill text HERE.