Subcommittee backs flood-risk disclosure bill with realtor support after narrowing amendments

House Bill 200, a required flood-risk disclosure proposal, advanced out of the Housing and Real Property Subcommittee after amendments negotiated with realtor stakeholders narrowed the bill’s documentary requirements.

Sponsor Delegate Lehman told the committee the measure would add a form — developed by the Maryland Department of the Environment — for sellers of single-family homes to disclose whether the property is in a FEMA-designated special flood hazard area, whether federal law requires insurance, whether the seller currently has flood insurance, whether the seller received federal disaster assistance (FEMA or SBA), and whether the seller has knowledge of prior flood damage.

Ben, committee staff, said the amendment clarifies the bill’s application consistent with the existing Seller Property Condition and Disclosure Act and removes requirements that would force sellers to produce records (such as canceled checks) or enumerations of prior flood events when such documentation may not be available. Bill Castelli, representing realtors, confirmed the realtor community proposed the amendments and supports the bill as a disclosure form rather than a liability-triggering mandate.

Committee discussion probed whether the bill imposes a strict knowledge standard and whether it functions as a disclosure (not a disclaimer). The chair and realtors emphasized the form is a checklist-style disclosure; the measure would take effect when MDE publishes the form and the effective date in the bill (the sponsor stated July 1, 2027, as an implementation target for sellers). The subcommittee adopted the amendments and moved HB 200 favorably out of subcommittee.