When To Zip It . . . And When To Spill.

By
Commercial Real Estate Agent with Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker AZ BR 528507000

The FSBO seller was so nice! Just immediately clicked. Delightful folks.

No problem working out a fee agreement.

Had a few questions on this rare Bullhead City, AZ commercial real estate offering (an airport hangar), while I waited for a return call from airport management.

One question: do you have to own aircraft to own a hangar?

My clients liked the property because of its proximity to their home, but do not fly (except on I-40, but that's a whole 'nother thing).

The property owner declined to answer, not wanting to misrepresent. Fine. We scheduled a viewing, and gathered information.

With a long weekend and holiday, it took a week to find out that FAA regulations require that airport hangars be used primarily and mandatorily for the storage of aircraft. Yes, you need to own a plane/other regulation aircraft, legally registered and insured.

 

That's a BIG material FACT.

Instant kibosh on the deal.

 

Even though I am now educated and resource-armed, and although I am certain there was no intentional concealment, knowledge of this critical info earlier on would have avoided wasting time and getting buyer and seller excited about a deal that couldn't go.

I felt bad for both parties.

The moral of this story is, sure, you can put your property on the market without a real estate license . . . but will you make the right disclosures?

 

DO YOU KNOW what you need to share?

 

Real estate brokers are EXTREMELY SENSITIVE to the obligation to fully disclose, and they know what must be disclosed and what needn't be.

We don't want anyone misled in any way, and we don't need the grief factor when something is discovered too late.

Also, if the deal doesn't work for a prospect, isn't it better to find out immediately so you can move on to one who's a fit?

 

This works both ways:

A recent inquirer on a  Mohave County, AZ commercial property  REFUSED to disclose her intended use, stating that it was 'none of my business'.

Haha, yeah well, if I don't know how you plan to use the property (and no one's asking for your DNA, for God's sake)--just 'retail', 'automotive', 'janitorial supplies'**, etc . . .

 . . . we won't know if the zoning is appropriate, whether you'll hit snags with City/County or if the owner will allow you to have potentially hazardous materials on his property (that particular one will not).

**the business, easily found via Google while we spoke. An un-doable deal.

Then again, I learned enough to know I never would work with that prospect.

 

🎵 Happy deals to you . . . until we meet again!  🎵

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Rainmaker
1,027,150
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I learned something new today - had no clue I could not own an aircraft hangar if I didn't use it as such.  Huh.  

Of course, that begs the question - why would anyone want one if not for aircraft? Not being snide, genuinely curious as to the advantages. 

Oct 12, 2018 07:56 AM #1
Rainmaker
1,725,782
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Well said Candice A. Donofrio .  We have the same rules here concerning property around our airport.

Oct 12, 2018 07:57 AM #2
Rainmaker
5,326,566
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

ha... Roy Rogers and Dale Evans.....  FSBO's are usually one step away from a lawsuit or having the good sense to pay the commission and hire the well-versed listing agent..... if they don't, the legal fees will be more than the commission...

Oct 12, 2018 07:59 AM #3
Rainmaker
4,813,850
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Candice,

You reminded me of an unusually strange client who wanted to open a more "interesting" store than Victoria's Secret in Beverly Hills.  The owner of the building was "open" to the idea.  He wanted to see pictures of the merchandise.  When we saw the catalog, we knew it was not going to happen, it would have made Fredericks of Hollywood blush!.  When the owner saw it, he flipped his lid...We suggested to the client that he would do better in Hollywood.  He was very angry with us for showing the owner his catalog???Maybe it is his wife who does not want to disclose.  LOL A

Oct 12, 2018 08:03 AM #4
Rainmaker
3,824,961
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good afternoon Candice. This is a terrific example of knowing what you don't know and working against your own interests.

Oct 12, 2018 11:00 AM #5
Rainmaker
1,600,478
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

But duct tape usually fixes everything except this. That's why asking the right questions are so important.

Oct 12, 2018 12:26 PM #6
Rainmaker
1,177,715
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

There you go, the dangers of trying to sell on your own. I can only imagine if unrepresentated buyers had purchased it and not thought to investigate. 

Oct 12, 2018 12:47 PM #7
Ambassador
2,313,700
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Could they have stored someone else's plane in there Candice? Otherwise, that would be an amazing place for live bands and large gatherings!

Oct 12, 2018 12:49 PM #8
Rainmaker
1,041,483
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

That's a really nice roll of duck tape. The FAA is pretty clear on this one.

Oct 12, 2018 08:01 PM #9
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Rainmaker
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Candice A. Donofrio

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