The NHD report says the property is IN a Special Flood Hazard Area (Zone AE), while the FEMA Flood Determination Certificate says the building is NOT in the SFHA (Zone X500). Both are correct:
An SFHA is FEMA’s high-risk “100-year floodplain” (Zones A/V) — being in one triggers mandatory flood insurance for federally backed loans.
The NHD reports “IN” if any portion of the parcel touches an SFHA — here, the strip along Hale Creek.
The dwelling itself sits in Zone X500 (moderate risk) — outside the SFHA.
FAVORABLE No mandatory flood insurance. Coverage is still worth quoting given the creek adjacency, and the signed Flood Determination Certificate must be returned with the offer.
2Trust Sale — No TDS
Seller is the Trustee of the Malmgren Family Revocable Trust; family-owned since 1975 ($83,000 purchase). Estate-condition property.
An Exempt Seller Disclosure replaces the TDS — all items “No” except non-compliant plumbing fixtures. The trustee has no actual knowledge of the home’s condition.
Buyer is responsible for the pre-1994 water-conserving fixture retrofit.
Keep every inspection contingency; do not shorten the 10-day lead-paint window.
3Top Structural & Condition Flags
REDFoundation: vertical cracking indicating movement/settlement; right/rear crawl space NOT inspected (<16″ clearance). Get a structural engineer.
REDMaster shower: active leak with fungus — full rebuild $16,780 + permits. Pest Section 1 total $17,487. No active termites.
YELLOWNo A/C; unknown furnace; severely rusted crawl-space ducting; pool lacks 2 CA §115922 drowning-prevention features; chimneys lack caps; pre-1978 lead paint assumed.
4Environmental & Title
Liquefaction zone: YES (per NHD) — combined with observed foundation cracking, warrants an engineer before removing contingencies. Fault/dam/fire zones: No.
Title is clean of liens (unencumbered fee), but carries 1947 CC&Rs (+2024 modification), PG&E and 5-ft storm-sewer easements, and Hale Creek water-rights exceptions.
Addendum #1: no assignment of contract rights; no marketing of the property before close of escrow. 3% EMD due within 1 business day of acceptance.
5Repair Budget Snapshot
Item
Est. Cost
Pest Section 1 (shower rebuild, fungus)
$17,487 + permits
Pool repairs + replaster
$18K–$28K
Roof repairs now / re-roof in 8–10 yrs
$3–10K / $40–70K+
Foundation eval + potential repair
$500 + unknown
Electrical safety remediation
$2K–$8K+
Pool safety + fixture retrofit + misc.
$4K–$12K
Near-term total (excl. re-roof & foundation)
≈ $45K–$80K
6Bottom Line
None of the findings is fatal — this is a classic 1955 estate-condition home on a premium Los Altos lot. But with ~$45K–$80K of near-term deferred maintenance and a trustee selling with no knowledge of condition, the disclosures support bidding at or near $4,050,000 (per the earlier comparable-sales analysis) rather than chasing well above it. Verify Los Altos permit history, read the 1947 CC&Rs + 2024 modification, and have an engineer evaluate the foundation during your contingency.