Property is on an old munitions range--what to tell applicants

Property is on an old munitions range--what to tell applicants

Orlando, FL · Member since 2009 · 2k+ posts · 282 votes

This is a pretty strange problem....

There has been an ongoing problem in this area with severa heavily populated residential & business areas that were built on top of a WWII munitions testing range. I thought the problem was resolved but then I received a letter from the Army Corps of Engineers that they want access to my 2 houses in the area (to the yard only).

I called them and as I suspected the main problem is on the streets to the west of my rentals, but they are testing a wide area to be on the safe side, so now I'm swept up in this. They said it was very unlikely that they would find anything on the street where my properties are.

While it's good that they're doing the investigation, I honestly believe this whole issue is a tempest in a teapot. The whole area has been developed, swimming pools were dug, etc. and there has never been any documented incident of anyone being injured, etc. They've already done soil testing in several areas and no contamination has ever been found. Army Corps of Enginneers found one 4 lb bomb several years ago and that is what triggered this new investigation. However when I went to the public meeting about the issue the homeowners, while understandably annoyed and upset, are already attributing all kinds of mystery illnesses to this, which I believe to be bogus.

Anyway, I have already told the tenants in the one occupied rental and they are cooperative and did not freak out or get upset about this. My problem is the other house is vacant right now and the testing/search is not going to be until this summer. I will need to rent it out before then. I could just not tell the new applicants/renters about this, but I feel uneasy about doing that. At the same time I do not want to scare applicants off or have people try to take advantage of the situation by asking for a huge discount in rent. Does anyone have an idea of the best way to handle this? thanks

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Residential Real Estate Broker · Long Beach, CA · Member since 2011 · 13 posts · 8 votes
15y

I would generate a disclosure that is incredibly general. It seems to me that the more specific that you get, the more questions will arise. Additionally, I would contact the Army Corps and get a number for a prospective tenant to contact for more information.

Engineers love to talk about engineering, and they should receive all of the information necessary to assure them of the safety of their tenancy and cover your tender back side!

I am not a lawyer, and all of my advice should be considered as the ramblings of an unqualified madman! See? Tender backside coverage can be fun!

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  • Residential Real Estate Broker · Long Beach, CA · Member since 2011 · 13 posts · 8 votes
    15y

    I would generate a disclosure that is incredibly general. It seems to me that the more specific that you get, the more questions will arise. Additionally, I would contact the Army Corps and get a number for a prospective tenant to contact for more information.

    Engineers love to talk about engineering, and they should receive all of the information necessary to assure them of the safety of their tenancy and cover your tender back side!

    I am not a lawyer, and all of my advice should be considered as the ramblings of an unqualified madman! See? Tender backside coverage can be fun!

  • SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    15y

    Pretty much what Jeremy recommended. I would offer the tenants a disclosure in order to CYA. Try and get some documentation from the USACE as to the status of the investigation to show your tenants and the final report when it becomes available. Basically be up front about it. Nobody likes to think they're being deceived. When the truth is all laid out in front of them, they can make a decision based on facts and will have a hard time holding you accountable later.

    You might even offer them $100 for every bomb they find on your property! :mrgreen:

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    15y

    Thanks (I don't know about the $100 per bomb idea, lol).

    I was thinking of telling them about this at the point when they are giving the security deposit to hold the place--that way, if they get skittish they can back out and keep their deposit, but also I don't have to tell every person who comes through the door about this. Does that sound like a good idea?

  • Tucson, AZ · Member since 2008 · 945 posts · 45 votes
    15y

    I sure wouldn't want to find out at that point. Especially if I had a kid or had just let my second choice go. If it really isn't a problem, there's absolutely no reason NOT to tell everyone during the initial showing of the place.
    I think you're being deceitful, or at the very least, not forthcoming if you don't make it a point to let them know. Then they have a chance to research some themselves and make an informed choice, not a spur of the moment decision.

  • Real Estate Investor · Lake Worth, FL · Member since 2009 · 263 posts · 92 votes
    15y

    I would also check that your insurance doesn't have a clause that excludes it from covering this type of event.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    15y

    Good thoughts. Providing an inspection clause (should be in your lease anyway) that includes your agents and government entities with your consent would open that door.

    I would disclose that the area; Over there use to be used my the military during WWII for munitions testing, but this yard was tested years ago before they built the area up. Seems they have new equipment now and want to play with so some time next summer they will be in the area.

    If anything explodes on your property your liability will be covered under your insurance. Explosions are covered perils and bombs are not excluded, but instances of governmental acts are, but not from the prior use, IMO.

  • Karen MargraveBusiness Member
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    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    15y

    Honesty and FULL disclosure, otherwise you are setting yourself up for a lawsuit, and besides, it's the right thing to do.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    15y

    Yes, I'm going to disclose it. I will also give them the phone # of the Army Corps if they want more information, need to be reassured, etc.

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