Anyone actively engaging in land brokerage should be aware of several issues that may arise before of AFTER you sale a tract of land. Most states have a Residential Property Disclosure, but very few (only 4) have a Land Disclosure. These are all issues that you should be away of when representing a Buyer in a land transaction:
- Encroachments
- Easements
- Endangered species: Plant Animal
- Flooding whether currently or previously
- Forfeiture of rights (mineral, timber, development, etc.)
- Government sponsored clean-up of the property
- Goundwater contamination
- Illegal uses (manufacture of liquor, methamphetamine, marijuana cultivation, etc.)
- Landfill operations: legal or illegal or previous planned
- Mineshafts or tunnels
- Noxious fumes or odors
- Pipelines (natural gas, petroleum, etc.)
- Well water contamination: current or previous
- Conservation Easements
- Stream Restorations
- "Are there any Gravesites on the Property?
- "Are there any animal cemeteries or animal burial sites?
- "Are you aware of the presence of:"
- Asbestos, Benzene, Fuel/chemical storage, Paint (Lead based paint) (Other paint/solvents), Methane gas, Pesticides, Radioactive material, Radon gas, Underground storage tank(s), EPA Phase I, II or III studies.
- "Are you aware of any past or present issues or problems with any of the following on the property?"
- Soil settlement/expansion
- Drainage/grade
- Earth Movement
- Erosion
- Flooding
- Fissures
- Dampness/moisture other than around rivers, streams, lakes, etc.
- Sliding
- Wetlands or previous wetland areas
- Do you have a survey? When was it done? Who did the survey? Do you have a copy? Has it been recorded?
- Is or will it be subject to protective covenants, conditions or restrictions?
- Is the legal owner(s) of the Property a foreign person or a non-resident alien pursuant to the Foreign Investment in Real Property Tax Act (FIRPTA)?
- Is the Property located in an unincorporated area of the county?
- Is the Property subject to extra territorial jurisdiction?
- What is the current zoning of the Property?
- Has the property been timbered in the past 25 years?
- Harvest monitored by a Registered Forester?
- Timber replanted after the harvest with (species)
- Is the property in an Agricultural or Forest tax deferment program?
- Coming soon "Carbon Credits" that will also need to be disclosed.
As you can see, the list is rather lengthy and could actually keep on going. The REALTOR Code of Ethics discourages any member from actively engaging in business in which they are not competent in. Please keep this in mind as your client is trusting your knowledge for a large investment. If you are not comfortable, REFER it out to someone who specializes in that niche market. You may even be surpriised to find out that referrals in return in your niche.
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