Riparian zones, unique to waterfront property, impact the ability of Virginia homeowners to exercise control over the view they paid a premium for.
This is because waterways move, shorelines erode, a neighbor may be seeking permits to build a pier and boathouse that limits your buyers' plans, and the title for the waterfront property may or may not include the legal right to control the bottomland - the mud, sand or dirt beneath the water.
At the very least, before depositing earnest money, a comprehensive title search needs to be completed. A definitive answer may also require a riparian survey - a document created by hydrographic surveyors, which attorneys can present to the Virginia Circuit Court to argue why an individual should or should not have the ability to construct a pier or make other alterations to the waterway in question.
It's your duty to understand and inform the buyer of waterfront property.
In Virginia, realtors can in certain instances be held liable if they misrepresent or fail to disclose material facts concerning the riparian property rights associated with a home or commercial structure being purchased by their client.
Buyers bear the ultimate responsibility for performing due diligence, but realtors dealing with property that touches a Virginia waterway may be exposing themselves to areas of the law that are more nuanced than property without shoreline.
Unique Obligations for Waterfront Realtors - Virginia Beach Coastline
Shutterstock: Steve Tanner
Impact on Property Value and Marketability
How do you determine the value of waterfront property? You'll probably look at comparable properties that have been listed or recently sold in MLS, just like normal. But here's the thing…
…it's difficult to determine waterfront property value without a clear understanding of the riparian zone (the area beyond the shoreline, extending into the water). It never perfectly mirrors the shore and land boundaries.
A recent hydrographic survey can provide a strong theoretical summary of the riparian zone - the area of control that extends beyond the shoreline, into the water. Of course, this would need to be proven in Virginia Circuit Court if there is a dispute between neighbors.
The ability to control what is built or removed along the shoreline adds substantial value to Virginia Waterfront Property - a premium sometimes northwards of 25-45%. Your unobstructed or strategically framed view is worth protecting.
Failure to establish and by extension, losing those rights will negatively impact the value of the home, and your ability to market it for sale.
Have riparian rights been conveyed?
When performing due-diligence for waterfront property buyers in Virginia, we look at the history associated with the riparian rights adjacent to the land property.
In some cases, the riparian rights may have been severed by a previous owner. This means that a prior owner sold and/or transferred the riparian rights to another entity. Once this occurs, it permanently impacts the title of the property.
If your buyers believe they are purchasing an intact piece of waterfront property, with full rights, your reputation will suffer if they learn after closing that they bought something less than what they thought they had bargained for. This is especially important if they intend to build a dock / pier, or expect to maintain their view in its present condition.
We also check to see if a neighbor has filed a joint permit application with the VMRC for a project that would impact the property in question. Wouldn't you want to know if your neighbor is planning a near-term construction project that would impact the view and water access you paid a premium for?
The right thing to do is have a Virginia waterfront attorney pull and then review the land records to ensure the property is being described accurately and does not have pending impediments to the joy and use the new property owners expect.
Get Expert Legal Help"Buyers are liars." - Every seller
Those aren't my words and every case is unique, but it's a sentiment I hear from so many of my professional colleagues - dealing with clients who have buyer's remorse. Sometimes it's because they didn't find the right solution, but more often it's because of something the person in legal trouble hadn't considered earlier in the transaction.
To borrow a proverb from Benjamin Franklin: "An ounce of prevention is worth a pound of cure."
We all love a quick transaction full of impulse and excitement, but the honeymoon period can be fleeting once the deal closes.
Home buyers and realtors facilitating transactions involving waterfront property in Virginia should contact our firm. Why?
- You may end up misleading your client if you fail to fully inform them about the associated Riparian Zone and their legal rights.
- The area in the water, beyond the shoreline, may or may not be well-defined. We can bring it into focus, with context surrounding the property's title history.
- If a dispute arises over a property's riparian rights and it ends up in court, it will likely tank any deal you're putting together.
Smart homebuyers contact us all the time to confirm that the property they're considering putting an offer on actually gives them the right to do what they want with the land and shoreline once they own it. Finding out after the fact can be a painful, costly surprise.
Don't get stuck with buyer's remorse, or set yourself up to get stung by an angry client who feels they weren't fully informed.
What does it look like when Virginia real estate deals go bad?
People with the financial means exert their will through the legal system. Smart homebuyers in Virginia contact us to ensure they are getting the property, along with the riparian rights they expect.
Unfortunately, many people lack the knowledge or discipline to fully protect themselves at the outset of the transaction. This leads to sticky, expensive messes.
Angry buyers love to lash out, sometimes justifiedly. If they have the resources, and tempers are flaring, someone's going to hire a lawyer.
Best case for a realtor in this scenario: It's an expensive headache to fend off.
Worst case: The angry buyer has something really damaging that will convince a judge to hit the realtor with damages, on top of their legal fees.
Yes, we are a Caveat Emptor (Virginia Buyer Beware) state, but that doesn't mean real estate agents are completely off the hook.
The internet is full of examples in Virginia:
- Home buyer in Augusta County, VA discovered a flooding basement. Sues homebuilder / seller and real estate agent. (Ballagh v. Fauber Enterprises)
- Waterfront property owner on Pretty Lake in Norfolk, VA discovers city easement, fights and wins ownership of improvements and narrows right of way being overstepped by city. (VA Waterfront Law Case)
- Home buyer in Fairfax, VA feels the real estate agent misrepresented property permits. (Reddit)
- Home buyer in Northern Virginia (NOVA) waived home inspection, now seeking legal help. (Reddit)
- Condo buyers in Virginia Beach, VA sue realtor for fraudulent inducement after adjacent property is suddenly developed. (Virginia Supreme Court - Boykin v. Hermitage Realty)
- Water overflowing a drain pipe in Virginia Beach, VA once again causes flooding, despite seller's assurances. (Ware v. Scott)
The above illustrates the variety and potential severity of these types of legal conflicts. We've handled dozens of cases in this area and we know how to set safeguards to minimize the likelihood of getting dragged into a legal fight over waterfront property.
We protect buyers, sellers and realtors in Virginia who deal with waterfront real estate.
Please let us help you, too!