Somebody will buy it. Someone will fall in love with its beauty and blindly trust the realtor/mortgage/title system to employ all the due diligence necessary. After all, the four homeowners below the dam were sold a "bill of sale" that none of us would have accepted.
And I also know that if I had lived near that pond when I was a kid, you would have had trouble keeping me away from it! This is a ticking time bomb primed for tragedy and court action(s).

I wonder if the owner who originally built the pond also owned the land below it and sold it for the housing development.
Note to self: Never sell the land below my pond!