Q: I am hoping you can give me an answer regarding the following questions I have regarding a proposed cell tower.

A cell tower is being proposed for a residential lot (with no house on it) in a lovely residential neighborhood about a quarter-mile from me.

The house next to the proposed cell tower site, which was up for sale, appears to be no longer saleable now that word has gotten out about the possibility of a cell tower going up.

This particular house is a million-dollar (or more) home and all interest has dried up with the exception of one lowball offer by people who had previously offered more.

I have read much about incurable defects and feel this could be one. This is a house that I would have been interested in.

My first question is: Is a cell tower considered an incurable defect since it does deter people from buying a property, in particular a million-dollar property adjacent to what most people would perceive as an unsightly structure, not to mention perceived health risks, even if there are none known? I have always understood that perception is reality, which would translate into lower resale value in the event the property would even attract people to begin with.

My second question is: In real estate circles, are properties like this less desirable than the exact same properties without a cell tower adjacent to it?

My third question is: Does the cell tower proposal have to be disclosed to a prospective buyer or does “caveat emptor” apply?

A: Cell towers come in many forms. If a cell tower were to be placed on a residential lot, a variance or other type of municipal-level conditional permit would be required. Your letter did not mention any hearings or public information meetings that addressed the building and appearance of the cell tower.

The appearance of the cell tower has a great deal to do with the effects that it will have on nearby properties. A camouflaged cell tower can blend with the surroundings.

A cell tower is not an incurable defect. It appears that you may be thinking of the concept of external or economic obsolescence, which is generally believed to be incurable. Cell towers are a fact of life and their appearance is generally accepted.

The construction of the cell tower will likely deter some prospective buyers. Area property values and desirability may or may not be hurt by the presence of a cell tower because other amenities of the area may offset concerns or issues with the presence of a cell tower.

Your question about disclosing the cell tower proposal to prospective buyers is an important one. Sellers must disclose all material facts that could adversely affect a buyer’s use and enjoyment of the property. An adjacent cell tower proposal should be disclosed to a prospective buyer. The idea of “caveat emptor” (let the buyer beware) for many sellers should be replaced with “disclose, disclose and disclose.”

– Thomas Musil is the director of the Shenehon Center for Real Estate in the Opus College of Business at the University of St. Thomas in Minneapolis. He has more than 25 years of experience in real estate as a broker, analyst, consultant and expert witness in real estate litigation and arbitration disputes.