April Showers Bring…Title Complications: How Flooding Affects Pennsylvania Real Estate

“Well, damn, Jackie, I can’t control the weather!” As Michael Kelso famously put it in That ’70s Show, sometimes there’s just no getting around the forces of nature. Weather patterns can have a significant impact on real estate transactions, often in ways that are not immediately obvious. Homes are designed and built to withstand the local climate and environmental conditions, whether it's sloped roofs to shed heavy snow or large windows for ventilation to handle the warm summer months. For properties in Pennsylvania, one challenge that stands out is flooding, which is the most common and damaging natural disaster in the state.

Flooding not only affects the safety and condition of homes, but it also has a ripple effect on real estate transactions. According to The Old Farmer’s Almanac, residents should expect a “warm” and “wet” spring for 2025, with temperatures about 5 degrees above the seasonal average and rainfall above normal in April and slightly normal in May. With such conditions expected, it’s important for realtors, buyers, and sellers to understand how flooding can affect real estate transactions - and what steps can be taken to prevent or resolve related issues.

The Impact of Flooding on Real Estate Transactions

Flooding in Pennsylvania can result in both immediate and long-term damage to homes. From flooded basements and structural damage to ruined personal belongings, the effects of flooding are costly. Beyond the physical damage, flooding can complicate real estate transactions in several ways:

1. Insurance Complications

Properties in flood-prone areas may have difficulty securing standard homeowner’s insurance, or the premiums may be extremely high. Flood insurance is often required for properties in designated flood zones, and its costs can affect the buyer’s ability to afford the home. Additionally, insurance claims after flooding may result in disputes about whether the damage was adequately repaired or if it may occur again.

2. Title Issues Due to Flood Zone Designations

Flooding can also create title complications. Homes located in designated flood zones can have restrictions on development and future construction, and potential buyers may be hesitant to purchase homes in high-risk areas. Pennsylvania law requires sellers to disclose if they are aware of any past or present flooding problems affecting the property and whether any part of the property is located in a flood zone or wetlands area. However, there is no specific requirement to disclose whether a property is mandated to be covered by flood insurance. Buyers should verify flood insurance requirements independently and review any restrictions or regulations tied to the property’s flood zone status, as these can impact future use and value.

3. Decreased Property Value

Homes in flood-prone areas may face reduced market value, especially if the property has flooded in the past. Buyers often seek homes that are not only safe but also appreciate over time. Properties with a history of flooding or those located in areas prone to flooding can struggle to retain their value, potentially derailing a sale.

How to Prevent or Resolve Flooding Issues in Real Estate Transactions

Fortunately, there are several steps buyers, sellers, and realtors can take to prevent or resolve flooding-related complications in a real estate transaction:

1. Obtain a Flood Zone Determination

Buyers should request a flood zone determination early in the transaction process. This will confirm whether a property is in a designated flood zone and help the buyer understand the associated risks and insurance requirements. Sellers should provide this information upfront to avoid surprises later in the process.

2. Conduct a Thorough Title Search

To identify any flood-related issues that could affect the sale, a thorough title search is crucial. This will help uncover any historical issues, such as previous flood damage claims, easements, or restrictive covenants tied to the flood zone. The search may also reveal any outstanding title issues that need to be resolved before the closing can proceed.

3. Consider Flood Insurance

Buyers should consider purchasing flood insurance, especially if the property is in a flood-prone area. This can provide peace of mind and protect against potential losses in the event of flooding. Sellers can also help by ensuring they have adequate flood insurance coverage if they’re selling a property in a flood zone.

4. Ensure Proper Repairs and Disclosures

If a property has flooded in the past, it’s important to ensure that any damage has been properly repaired. The seller should provide full disclosure of any prior flooding events and repairs made. This transparency helps avoid misunderstandings and ensures that the buyer is aware of any potential future risks.

5. Work with an Experienced Title Agency

Working with a professional title agency, like Clover Lane Settlement Services, can help identify potential flood-related complications early. A title agency can assist with securing flood zone determinations, checking insurance coverage, and ensuring that all relevant information is disclosed before closing.

With Pennsylvania’s wet spring forecast, flooding is likely to remain a key concern in real estate transactions. Buyers and sellers need to be proactive in addressing the potential impact of flooding, from securing insurance to conducting thorough title searches. By taking these steps, both parties can help ensure that closings go smoothly, despite any weather-related challenges.

At Clover Lane Settlement Services, we specialize in helping buyers and sellers navigate complex title issues, including those related to flooding and flood zone designations. If you’re facing a real estate transaction in a flood-prone area or want to ensure your closing goes off without a hitch, contact us today to ensure your title issues are properly managed.