When in doubt, disclose things like pig farms

I want to clarify some information I shared in this space recently about the location of a pig farm and when home sellers must disclose such things to potential buyers.

In my July 21 column, I answered a question from a reader asking about certain neighborhoods in Southern Nevada and related issues.

The reader asked specifically for information about neighborhoods near Farm Road and Decatur Boulevard in the northwest part of the Las Vegas Valley.

As part of my answer to this reader, I wrote the following: "While I'm limited in what I can say about specific neighborhoods, I can tell you that there is an active pig farm not far from the area you mentioned around Farm Road and Decatur Boulevard. It has been there for many years, a fact that must be disclosed to homebuyers in that area."

This prompted a note from local Realtor Larry King.

"The pig farm is not at Farm and Decatur. It is miles away from that intersection. … Also can you show me where I would look to find the disclosure document on the pig farm? What statute directs us as Realtors that we need to disclose this business? If there is one, is there one that instructs us to disclose the sewer treatment plants in the southeast valley or North Las Vegas, or how about the disclosure on the speedway, or any other specific business? Maybe we need to disclose the exotic pet permit holders. Would not this fall under the buyer's due diligence?"

I want to thank Mr. King for his comments. He's correct in noting that R.C. Farms Inc. is at 555 E. El Campo Grande Ave., near Ann Road and North Fifth Street in North Las Vegas. According to its website at www.rcfarmsinc.com, the farm was established there in 1963.

I apologize if I led anyone to believe that a legal document disclosing the location of the farm is in any way mandated by a state or local government.

What I should have said is that disclosures are required by state law and/or local ordinance.

The Residential Disclosure Guide published by the state Real Estate Division provides prospective sellers and buyers with complete information about required disclosures. For a copy, visit the division's website at www.red.state.nv.us.

More often, however, such decisions about when and what sellers should disclose to buyers are left up to the real estate broker or brokerage firm representing the property and what they believe should be disclosed to fully inform their clients.

As Realtors, we deal with many factors that could adversely affect the value of a property.

In such cases, we may be required by our brokerage to disclose and include such information in our files.

To quote from the Seller's Real Property Disclosure Form required by the state, published by the Real Estate Division and used by members of the Greater Las Vegas Association of Realtors, "In accordance with Nevada law, a seller of residential real property in Nevada must disclose any and all known conditions and aspects of the property which materially affect the value or use of residential property in adverse manner."

Examples of things that the state or your real estate brokerage may require real estate agents to disclose to buyers could include the location or planned construction of things like pig farms, sewage plants and freeways.

Likewise, builders of new homes often disclose items that could be viewed as contentious by some buyers.

In any case, I have always taken the stand as a broker and a Realtor that when in doubt, disclose. 

My philosophy has always been to disclose the things that I would want to know if I was the person buying the property. 

Thank you again for the comment.

Kolleen Kelley is the 2012 president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for more than 30 years. GLVAR has nearly 11,000 members. To ask her a question, email her at ask@glvar.org. For more information, visit www.lasvegasrealtor.com.