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I Have A Big Mouth - One Way To Have A Deal Go South!

vacant land pic stolen via google images Here's the deal or what may have actually been the deal! I have several acres of land listed for sale. An agent asked me to walk the property with her and her clients.

No problem, while we were doing so it was talked about them possibly considering subdividing the property in the future. Their Realtor, nor myself, thought that there would be an issue with this and further thought that they would be allowed to deed the property with it having ingress and egress via the other parcel.

OK, so long story short, which is extremely difficult for me. On Monday, I called the Zoning office and asked questions about the possible subidivision of this property. I found out that the county no longer allows them to have a common drive and that each property has to have its own dedicated driveway.

Since I knew that this was a possible concern, I informed the other Realtor of such. She told me that they were planning on making an offer, but she would have to contact them about this information and let them know. Well, needless to say, they is no offer forthcoming.

i guess if i keep on stealing these pics from google, this may be the outcome! I look at this several different ways & would like your take on such. Some will think that it was not my responsibility to let the other Realtor know what I had found out, since it was most likely her duty to do such for her clients. Others will say that once I found out this information, it was my duty to inform all parties of such. I can also see others saying that I should not have called at all & that was my fault for doing such.

Again, your thoughts!

Till next time - Marc It Sold!

Posted by Marc Grossman, GRI - Greater Orlando Real Estate Broker on 11/28/2007 05:00 PM

Comments (24)

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Originally posted at: Central Florida Real Estate Blog: I Have A Big Mouth - One Way To Have A Deal Go South!

24 Comments on I Have A Big Mouth - One Way To Have A Deal Go South!

NOV

2007

I think it is wise to go ahead and disclose this information. The buyers will most likely find it out eventually, and you don't want them to think you are hiding it from them. I have found that with vacant lands that I have listed in the past that you need to try and get as much info as you can from the city/county because the buyers are going to ask these questions anyway.

You probably do not have a legal duty to disclose because the Johnson vs. Davis on applies to owner occupant properties and not commerical, vacant land, or rentals. I least that is how I understand it.

Marc...

IMO...It's always best to find these things out and share them ASAP.

Sure beats the heck out having the deal close and get stuck in the middle of a mess that could have been avoided.

Til next time...Marc your self honest :)

TLW...ROAR!

We always disclose and the exact same situation happended to us yesterday. One of my BA wrote and offer, and when she called the LA found out about the township making a paved road go in. So she added it to the PA. We'll see, but yes disclose, it might come back to bite you and it is relevant to any sale.

Since you called and you know, you must disclose. It is definitely a material fact. At the walk around, end every sentence with, "I'm really not sure, I suggest you call the County about that." I work in litigation land (L.A.) and it is very scary here!

Rob, TLW & Missy - I wouldn't have done it any other way. I try to be very honest and because of such I sleep well at nights. It's not that I'm so altruistic, but...

TLW & Other Bloggers - am going to post a funny I just read in the paper.

Elaine - I agree! I know that I could have let things go and just let the other Realtor do her job, but... It's just the way that I am, so since there was a question... And actually the only question that we all had was into how many parcels could this plot of land be subdivided. Anyway, I'm surely not sorry at all.

Because the potential buyer asked and you gave an answer:

Their Realtor, nor myself, thought that there would be an issue with this and further thought that they would be allowed to deed the property with it having ingress and egress via the other parcel.

I think if buyer settled and then learned what you learned; you would be sued and if they could show that they relied on your statement when they bought the property, I think they would win.

You had no choice but to check with the zoning office and tell the buyer what you learned.

Ron - I have to agree with you. Even though what I stated was an opinion, I am still considered the 'expert' since I am the realtor. Now, granted, I think if it came down to it, their realtor would have been more at risk or at the least it would have been 50-50.

Mark Its not just that you might lose. Even if you win, you lose...There are lawyers to pay and the time taken away from your business is costly. Not to mention the lost sleep and constant distraction...I know Ive been there.

Ron - Of course I shouldn't say this, but I've luckily never been there. I have a friend who's been there several times. I've just always been too careful. Now, with that said, I can just see it coming down the pike.

Marc - Plain and simple - you did the right thing. I must agree with TLW on this one, as you likely saved yourself some big headaches later during any feasibility period that they might have had.

Jason - 'Plain and simple' like you said - that is the way I work.

Haven't read the comments yet, Marc, but this one is simple. Not only was it the ethical thing to do, but you saved all parties time and aggravation. Better the issue come to light now rather than the day before closing. They were going to find out eventually, better that it happen on your terms. Further, if they were to find out post-closing that you had obtained and withheld this info ... yikes! The allegiance to our clients does not extend to maintaining "plausible deniability," as coined by Donald Rumsfeld.

Paul - Well thank goodness, at least I'm not in with the likes of Rumsfeld!

NOV

2007

You probably avoided a contract going nowhere. If it was important they would have done their own research before closing.

Marc - You did the right thing. Sometimes it really hurts, but you have to disclose that information. I have dropped those kind of bombs on buyers before and kept them in the game. Sometimes in depends on how the buyer's agent presents the issue. Don't kick yourself on this, you did the right thing.

NOV

2007

Do you not have option periods there? If you do, and the concern had already been mentioned by the buyers, this would almost certainly have come out during that period in any case. Better to come out before the offer is submitted rather than when your seller thinks they have a contract and mess up the deal. I like to do my best to make sure that nobody (especially my client) has any unpleasant surprises after an offer is made - makes for much smoother sailing and a better possibility of the deal coming to pleasant fruition.

Besides, as someone said, it's a material fact and once you know it, you're required to disclose.

Tricia - I've always believed in full disclosure if it in anyway affects the property or value thereof.

DEC

2007

I think it shows your true concern for the buyer and not the sale. Good job! There are more fish to fry!

Richard - I'm a firm believer 'in what goes around, comes around' & in treating people the way I wish to be treated in their situation. Thanks for reading.

I think you saved a lawsuit where the buyers just sue everyone in the transaction whether or not you were at fault. And you did the right thing by them.

Josette - You are so right, there are no two ways about that. I just had to do what I felt was the right thing.

DEC

2007

Marc, as you already seem to know, full disclosure is best. One deal isn't worth your license.

Christopher - Totally agree with you!

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