California legislation requires disclosure to prospective home buyers that the property lies within a Special Studies Zone - an area, approximately 1/4 mile wide, enclosing known surfce fault ruptures. Surveys of California real estate agents, real property appraisers, home mortgage lenders and recent home buyers indicate that such disclosure has not had a measurable impact on the housing market.
... [Show full abstract] Most homeowners have not even taken minimal mitigation measures, including the purchase of earthquake insurance. The disclosure legislation is thus not effective in changing the behavior of home buyers - either in dissuading them from purchasing properties near known surface fault traces or in encouraging them to adopt mitigation measures. The legislation in itself is thus not providing any form of 'consumer protection'.-Author