HB 1704 — An Act amending Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes, in general provisions relating to residential real property, further providing for definitions; in seller disclosures, further providing for disclosure form and providing for website information and for flood disclosure; and imposing duties on the Insurance Department.

PRINTER'S NO.     2093

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1704
                                               Session of
                                                 2025

     INTRODUCED BY WARREN, VITALI, HILL-EVANS, PIELLI, GIRAL, KHAN,
        SANCHEZ, T. DAVIS, HADDOCK, DELLOSO, D. WILLIAMS, CIRESI AND
        ZIMMERMAN, JULY 7, 2025

     REFERRED TO COMMITTEE ON INSURANCE, JULY 8, 2025


                                    AN ACT
 1   Amending Title 68 (Real and Personal Property) of the
 2      Pennsylvania Consolidated Statutes, in general provisions
 3      relating to residential real property, further providing for
 4      definitions; in seller disclosures, further providing for
 5      disclosure form and providing for website information and for
 6      flood disclosure; and imposing duties on the Insurance
 7      Department.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10      Section 1.    The definition of "material defect" in section
11   7102 of Title 68 of the Pennsylvania Consolidated Statutes is
12   amended and the section is amended by adding definitions to
13   read:
14   § 7102.    Definitions.
15      Subject to additional definitions contained in subsequent
16   provisions of this part which are applicable to specific
17   provisions of this part, the following words and phrases when
18   used in this part shall have the meanings given to them in this
19   section unless the context clearly indicates otherwise:
20      * * *
 1      "Flood damage."   Damage to the subject property, including
 2   damage to personal property located on the subject property,
 3   caused by a natural flood event.
 4      "Flood-related risk factor."    Any of the following that
 5   indicate a potential risk of flood damage to the subject
 6   property:
 7          (1)   Whether the subject property has previously
 8      experienced flood damage.
 9          (2)   Whether the subject property is in a special flood
10      hazard area or moderate risk flood hazard area, as determined
11      by the Federal Emergency Management Agency.
12          (3)   Whether the owner of the subject property is
13      required to obtain and maintain flood insurance.
14          (4)   Whether the current owner or any previous owner of
15      the subject property received any form of governmental
16      assistance for flood damage to the subject property.
17          (5)   Whether the current owner of the subject property
18      maintains flood insurance on the subject property.
19          (6)   Whether the current owner of the subject property
20      has ever filed an insurance claim for flood damage to the
21      subject property, either through a private insurance company
22      or through the National Flood Insurance Program.
23          (7)   Whether there is an elevation certificate on the
24      subject property from the Federal Emergency Management
25      Agency.
26      "Material defect."   As follows:
27          (1)   A problem with a residential real property or any
28      portion of it that would have a significant adverse impact on
29      the value of the property or that involves an unreasonable
30      risk to people on the property.

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 1             (2)     The fact that a structural element, system or
 2      subsystem is near, at or beyond the end of the normal useful
 3      life of such a structural element, system or subsystem is not
 4      by itself a material defect.
 5             (3)    The term includes a flood-related risk factor.
 6      "Natural flood event."       A general and temporary condition of
 7   partial or complete inundation of two or more acres of normally
 8   dry land area or of two or more parcels of real property, at
 9   least one of which is the subject property, from any of the
10   following:
11             (1)    Overflow of inland or tidal waters.
12             (2)    Unusual and rapid accumulation or runoff of surface
13      waters from any source.
14             (3)    Mudflow.
15             (4)    Collapse or subsidence of land along the shore of a
16      lake or similar body of water as a result of erosion or
17      undermining caused by waves or currents of water exceeding
18      anticipated cyclical levels.
19      * * *
20      Section 2.       Section 7304(b) of Title 68 is amended by adding
21   a paragraph to read:
22   § 7304.    Disclosure form.
23      * * *
24      (b)    Contents of property disclosure statement.--The form of
25   property disclosure statement promulgated by the State Real
26   Estate Commission shall call for disclosures with respect to all
27   of the following subjects:
28             * * *
29             (18)    Any flood-related risk factor, to the best of the
30      seller's knowledge. If known and applicable, the seller shall

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 1      disclose the number of times and the estimated dates that the
 2      subject property experienced flood damage.
 3      * * *
 4      Section 3.   Title 68 is amended by adding sections to read:
 5   § 7305.1.   Website information.
 6      The Insurance Department shall post on its publicly
 7   accessible Internet website information about flood-related risk
 8   factors, flood mitigation and flood insurance and links to
 9   available information that identifies properties in a flood
10   hazard area.
11   § 7305.2.   Flood disclosure.
12      Once the information is posted in accordance with section
13   7305.1 (relating to website information), the seller of a
14   property shall provide to the buyer of the property, as part of
15   the seller's disclosure form or in addition to the seller's
16   disclosure form, the following written disclosure:
17          PLEASE READ: IMPORTANT INFORMATION ON FLOOD INSURANCE
18          Many properties in Pennsylvania are experiencing
19          increased risks regarding flooding. You are encouraged to
20          visit the Insurance Department's website to review flood-
21          related risk factors. A standard homeowner's insurance
22          policy typically does not cover damage caused by
23          flooding. You are encouraged to speak with an insurance
24          professional about your homeowner's insurance policy to
25          determine whether you are covered for damage caused by
26          flooding. If you are not already covered for damage
27          caused by flooding, coverage may be available from an
28          insurance company or through the National Flood Insurance
29          Program.
30      Section 4.   This act shall take effect in 60 days.

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