Fair Disclosure and Airport Impact Statements in Real Estate Transfers

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 there is 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 assert that existing fair disclosure laws are necessary to address issues that arise regarding the disclosure of airport noise and operations in the area where a home is purchased. This digest examines the effect of a state or locality having no real property disclosure laws, existing general state real property disclosure laws, and existing state real property disclosure laws specifically requiring the disclosure of airports in close proximity to the property being offered for sale. After identifying and analyzing state real property disclosure laws specifically requiring the disclosure of airports, annotated typical fair real property disclosure law provisions have been included. The latter includes provisions essential for effective fair disclosure of airport-related impacts. This digest should be useful to airport and real estate attorneys, administrators, risk managers, financial officials, state and local policy officials, community and civic association members, realtors, real estate boards and commissions, and to all persons interested in the full disclosure of information that could impact the purchaser(s) of real property in close proximity to an airport.