California home sellers who purchased a Property ID (brand) Natural Hazard's Disclosure (NHD) report when they listed their homes with Coldwell Banker, Prudential California Realty, RE/MAX, Century 21 or ERA Real Estate may be entitled to a full refund of the cost of the NHD disclosure as part of a settlement of a class-action lawsuit.

California sellers are required by law to make a Hazard's Disclosure.  Other than by looking at maps (and more maps) and accepting liability for an error, the simplest way to disclose is to purchase a Hazard's Disclosure Report.  The problem allegedly arose because Realtors and their Brokers were steering business to Property ID (brand) so that the (above named brokerages) could pocket a $25.00 kickback from each policy.  If approved, an administrator will mail claims applications to eligible home owners.  READ MORE HERE

Apparently it's been approved, because I just received a phone call from a client who resides out of state.  He received a notice in the mail pertaining to a class action law suit due to my former brokerage's (alleged) participation in the Property ID scandal. 

Sometimes, the NHD provider is negotiated during contract negotiations.  Certain firms (which were named in the lawsuit) had a financial incentive to push for Property ID as the provider. I have assisted this client in the purchase and sale of over a half a dozen proprieties and apparently in one of these transactions Property ID was selected as the NHD provider. This was news to me, because I don’t recall ever using them as their fees were typically a bit higher than other reputable firms.  I never knew of an incentive to my former broker until I read the allegations in the news and I certainly am not dumb enough to  did not accept a $25.00 kickback.