93 Plus Potential Land Disclosure Issues

93 Plus Potential Land Disclosure Issues 

Anyone involved in a typical Land transaction, leasing, buying or selling may be exposed to 93 plus potential Land issues. For years now I have advocated for need of a “Land Disclosure” form throughout our country. So far only four states have such a document available for the real estate industry and they are Arizona, California, Georgia and Tennessee.

Most states have “Residential Property Disclosure” forms which are executed at time of the listing by the sellers and reviewed and signed off by the buyers during the offering process. We recommend these forms to also be used even in cases where you are selling without the assistance of a real estate firm.

North Carolina’s “Residential Property Disclosure” form has only twenty-one issues, far less than the Land form who should have and fewer than other comparable forms found around the country.

Here are a few examples of the ninety-three plus potential Land Disclosure issues currently in place by the four states previously mentioned.

“Are you aware of any?”

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.

Land can have a lot of issues and knowing all the aspects involved is critical for all involved in any of these transactions.

The Real Estate Industry “Realtor®” program has an established “The Realtor® Code of Ethics” as a guideline for practicing real estate. This code has seventeen articles. Article 11 states:

“The services which Realtors® provide to their clients and customers shall conform to the standards of practice and competence which is reasonably expected in a specific real estate disciplines in which the engage; specifically, residential real estate brokerage, real estate syndication, real estate auction, and international real estate.” (Our Professional Standards Committee voted unanimously in Washington in May this year at the NAR Mid-Year Convention meeting to include the four letter word “Land” in Article 11 of the code. It was approved by the NAR Board of Directors in San Diego in November and adopted January, 2010).

“Realtors® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client.  Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.” (Amended 1/95)

See: http://www.realtor.org/MemPolWeb.nsf/pages/COde

Unfortunately when one goes to real estate school around the country and takes the 160 +/- hours of classroom instruction and testing, they are not taught about Land, Commercial real estate, Property Management, etc., only about residential property and real estate law. Do not assume that all real estate agents have the knowledge in the specific areas of brokerage.

If you are buying or selling Land or Farms or Ranches, make sure to find a member of the Realtors Land Institute to help you in this process. Specifically look for an Accredited Land Consultant, their Designation for those experts in Land who have worked hard to achieve it.

See: http://www.rliland.com  for the nearest RLI agent and the RLI programs and educational opportunities.

Consult with a Land attorney if you plan to create your own “Land Disclosure” form.  If you are a real estate agent, please check with your Broker-in Charge before creating or using even if your state has a standard required “Land Disclosure” form already approved. The potential risks and liabilities created because of non-disclosures can be very costly.

Lou Jewell ALC

Accredited Land Consultant

Dan River Real Estate

http://www.danriverrealestate.com

 ”A Voice for Land”

About the Author

Lou Jewell ALC Broker Realtors Land Institute Land 101 Instructor Member of Winston-Salem Regional MLS Dan River Real Estate, Inc. 502 Key Street Pilot Mountain, NC 27041 336 368 3933 Became a Realtor Salesperson July 7, 1994 Received Brokers License January 5, 1998 May 1999 joined the Realtors Land Institute 2003 President of the North Carolina Chapter 33 Realtors Land Institute 2000-2007- 2009-2010 Board of Director for the North Carolina Chapter 33 Realtor Land Institute 2008-2009 North Carolina Board of Governance Realtors Commercial Alliance Attended and completed the original Land 101 Instructors class May 12, 2003 Washington DC Mid-Year NAR Convention Applied for and later receiver North Carolina Real Estate Commission Continuing Education (Elective four hour credit) September 22, 2003 for all RLI Land 101 Classes. Instructed nineteen Land 101 classes graduating over 1,400 Realtors from over twenty-seven states. Taught in North Carolina, Tennessee, South Carolina and Nebraska. Received the Realtors Land Institute Accredited Land Consultant Designation November 6, 2004 Certificate #1,079 in Orlando, Fla. NAR National Convention Currently in North Carolina I am one of twelve nine active Accredited Land Consultants and one of four hundred thirty-two in the nation. Completed the Land 101 Instructors mandatory update class November 3, 2004 in Orlando, FLA at the NAR National Convention and again May 2006 in Washington DC at the Mid-Year NAR Convention, November 2006 New Orleans National, and November 2007 New Orleans at National, 2008 Las Vegas NAR National and 2008 NAR National, Orlando, Fla. January 2006 was appointed by Randy Hearst, National Realtors Land Institute 2006 President to the Professional Standards Committee and attended the session in Washington DC May 2006. . 07/07/94 to 07/18/1997 Carolina Farms 130 West Main Street Pilot Mountain, NC 27041 07/18/1997 to present Dan River Real Estate, Inc. 502 Key Street Pilot Mountain, NC. 27041 During the three years at Carolina Farms, I was involved in land brokerage as NC licensed salesman. I generated 78% of the historic company sales during same period. For the past fourteen years, I have sold approximately three hundred and sixty-two land parcels and farms. I have developed and marketed twenty-seven rural subdivisions ranging from five tract subdivisions to thirty-one tract subdivisions. During 2001, I had over 200 land and farm listings in Surry and Stokes Counties, North Carolina. I authored the “Land 101 Survival Kit” four page hand out for the Land 101 class. Several Land 101 instructors from around the country use it in their Land 101 classes. Currently, I have completed a fifteen chapter book on land development and investment titled “An Insider’s Guide to Land Investment”, soon to be published. I have consulted for several Land web sites including RLI’s. I have been an “Expert Witness’” for several years for local judges for Land disputes and equitable property break-up’s. Lou Jewell ALC Broker Realtors Land Institute Land 101 Instructor Member of Winston-Salem Regional MLS Dan River Real Estate, Inc. 502 Key Street Pilot Mountain, NC 27041 336 368 3933 Became a Realtor Salesperson July 7, 1994 Received Brokers License January 5, 1998 May 1999 joined the Realtors Land Institute 2003 President of the North Carolina Chapter 33 Realtors Land Institute 2000-2007- 2009-2010 Board of Director for the North Carolina Chapter 33 Realtor Land Institute 2008-2009 North Carolina Board of Governance Realtors Commercial Alliance Attended and completed the original Land 101 Instructors class May 12, 2003 Washington DC Mid-Year NAR Convention Applied for and later receiver North Carolina Real Estate Commission Continuing Education (Elective four hour credit) September 22, 2003 for all RLI Land 101 Classes. Instructed nineteen Land 101 classes graduating over 1,400 Realtors from over twenty-seven states. Taught in North Carolina, Tennessee, South Carolina and Nebraska. Received the Realtors Land Institute Accredited Land Consultant Designation November 6, 2004 Certificate #1,079 in Orlando, Fla. NAR National Convention Currently in North Carolina I am one of twelve nine active Accredited Land Consultants and one of four hundred thirty-two in the nation. Completed the Land 101 Instructors mandatory update class November 3, 2004 in Orlando, FLA at the NAR National Convention and again May 2006 in Washington DC at the Mid-Year NAR Convention, November 2006 New Orleans National, and November 2007 New Orleans at National, 2008 Las Vegas NAR National and 2008 NAR National, Orlando, Fla. January 2006 was appointed by Randy Hearst, National Realtors Land Institute 2006 President to the Professional Standards Committee and attended the session in Washington DC May 2006. . 07/07/94 to 07/18/1997 Carolina Farms 130 West Main Street Pilot Mountain, NC 27041 07/18/1997 to present Dan River Real Estate, Inc. 502 Key Street Pilot Mountain, NC. 27041 During the three years at Carolina Farms, I was involved in land brokerage as NC licensed salesman. I generated 78% of the historic company sales during same period. For the past fourteen years, I have sold approximately three hundred and sixty-two land parcels and farms. I have developed and marketed twenty-seven rural subdivisions ranging from five tract subdivisions to thirty-one tract subdivisions. During 2001, I had over 200 land and farm listings in Surry and Stokes Counties, North Carolina. I authored the “Land 101 Survival Kit” four page hand out for the Land 101 class. Several Land 101 instructors from around the country use it in their Land 101 classes. Currently, I have completed a fifteen chapter book on land development and investment titled “An Insider’s Guide to Land Investment”, soon to be published. I have consulted for several Land web sites including RLI’s. I have been an “Expert Witness’” for several years for local judges for Land disputes and equitable property break-up’s.

RANM LEGAL COUNSEL ASHLEY STRAUSS-MARTIN ESQ. ON LEAD BASED PAINT DISCLOSURE RULE PART 4 OF 6