The purpose of fair disclosure laws is to provide prospective home buyers with sufficient information to make informed decisions about the purchase of property. Airport operators are particularly interested that home buyers obtain information about the noise and flight paths associated with airport operations before prospective buyers make decisions about purchasing property located near an airport. In too many cases property is purchased near airports without full disclosure of the nature of airport operations and thus the potential for purchaser remorse based on the lack of disclosure of airport noise and operations. In some cases, the adoption of fair disclosure laws that include the disclosure of the potential impacts of aviation operations has been impeded by the fear of some homeowners, local officials, and representatives of the real estate industry that such disclosure may provide an exaggerated impression of the significance of aviation related impacts and thereby impair property values. Proponents of such disclosure laws maintain that the real estate market takes account of any aviation related impacts regardless of fair disclosure laws. Still others argue that existing fair disclosure laws are adequate to address issues that arise regarding the disclosure of airport noise and operations in the area where a home is purchased
The intent of this ACRP Legal Topic is to survey existing fair disclosure laws among the states, determine if and how existing fair disclosure laws are meeting the need for a disclosure to prospective purchasers of airport-related conditions and operations, and to develop an annotated model fair disclosure law.
The model fair disclosure law developed for this topic should be in a form that is appropriate for consideration by state legislatures and local governments. The Consultant shall survey existing literature, research state laws, case law, and survey airport proprietors, trade associations, and other knowledgeable persons in order to identify circumstances and occurrences involving the issues described above. Of particular interest should be legislation or case law which specifically requires the disclosure of airport noise and operations in the area where a home is located. The report should synthesize the literature, statutes, regulations, and case law gathered by the Consultant’s research efforts. The primary data collected through surveys and interviews should be tabulated and presented to supplement the legal synthesis.
The report shall include an analysis of the essential features required for effective fair disclosure of aviation related impacts. The report should also develop a model fair disclosure law and a set of best practices for use by airport operators and local government land use regulatory agencies in implementing fair disclosure laws and ordinances in a manner that requires the full disclosure to prospective home buyers of airport-related conditions and operations.
Status: This report has been published as LRD 12: Fair Disclosure and Airprot Impact Statemetns in Real Estate.