Property Disclosures and Environmental Issues
Harrison is selling his property in Oklahoma. Several buyers showed interest in the prop
Before contract acceptance
Why would a buyer want to know if any easements or encroachments exist on a property?
Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value.
Donald and Martina decided to purchase a newly built home, and their agent, Ed, recommended that they get a professional home inspection done. The couple tells Ed that they thought inspections were only for older homes. How should Ed respond to that?
Ed should remind them that every dwelling, no matter the age or size, should have a home inspection.
Which written statement will be used to consider ways to minimize a project's negative impact on the environment?
Environmental impact statement
What did the Clean Air Act authorize the EPA to do?
Establish air quality standards for the protection of human health and the environment.
Gina is buying a home. Her home inspector performed a radon test and discovered a radon level of six picocuries. Which of these statements is true? A)Federal regulations require that the seller install a mitigation system. B)Gina and the seller can negotiate installation of a mitigation system. C)There's no need to mitigate for radon levels of less than seven picocuries. D)The seller isn't required to mitigate for radon, but Gina is required to before she can move in.
Gina and the seller can negotiate installation of a mitigation system.
The Nicholsons just bought a mid-century modern home that will require lead paint abatement. Tom and Genna, their three-year-old daughter Grace, and Genna's mom Pat are waiting to move into the split level until the abatement is complete. Who would be at the most risk of adverse lead effects if they moved in before the abatement was finished?
Grace
John and Jean are thinking of purchasing a site on which they'll build a new storage facility. What should they do to determine if the site contains any environmental hazards or contamination?
Have an environmental site assessment performed.
Wendell just listed Barb's home. Barb told him that there weren't any easements on the property, and Wendell hasn't seen a copy of the survey. What is Wendell's responsibility relative to the disclosure of any easements?
He only needs to disclose easements if they're known.
Trenton Excavating owns land on which it intends to build an equipment storage facility. It's found to be contaminated with agricultural chemicals. What's true of Trenton's liability?
If Trenton had no knowledge of the damage and no reason to suspect that the property was contaminated, it may be immune from liability.
Seller Jason is giving listing agent Rebecca a tour of his house and pointing out all the features, even the spot in the attic where a previous owner's ghost likes to come back and visit. Jason asks Rebecca if buyers should be told about this. Which response is best?
"The presence of spirits stigmatizes the property. Many states don't consider this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check our laws."
Jenna was surprised that the charming Tudor she was touring was still on the market. "I don't see anything bad on the disclosure," she told her agent, "and the price seems fine. Why do you think it hasn't sold?" Her agent Louise responded, "Well, I heard that UPS was opening a new air hub two miles away early next year." Why might this affect Jenna's or other buyers' interest in the property?
A UPS hub would mean many more flights overhead each day.
An abandoned or otherwise unused commercial or industrial site that contains suspected contaminants is known as a what?
A brownfield
Which of the following wouldn't need to be disclosed by the listing agent who noticed it when selling a home? A)A garage added on to the home without a permit B)A kitchen cabinet that was installed at a slight angle C)Electrical wiring done "on the cheap" and not to code D)Water damage in the floor from a recent flood in the basement
A kitchen cabinet that was installed at a slight angle
Jon and Talia are artists who are looking for a home with a backyard that is big enough for them to build a studio. Which of the following properties might they want to stay away from? A)A lot that is adjacent to or partially on wetlands B)A lot with a gentle slope C)A property that is 1,200 feet from an interstate highway D)A treed lot
A lot that is adjacent to or partially on wetlands
Which of the following statements about material facts is true?
A material fact may have more or less effect on a buyer based on the buyer's needs and values.
Which of these factors makes a site a Superfund site?
An EPA designation of a necessary cleanup
What is a special flood hazard area?
An area where flood insurance is mandatory
Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new flashing and to be repointed. To whom must Shane disclose that information?
Any party to the transaction
Greg and Neha are interested in buying a ranch-style home in a suburban family neighborhood. The sellers have only lived there for 19 months, so they have no information about the addition that was put on 20 or 30 years ago. Why does it matter whether the owners at the time got permits to do the addition?
If the addition WAS NOT permitted, it may need to be inspected to ensure it meets code and perhaps even be taken down.
The EPA-approved pamphlet, "Protect Your Family From Lead in Your Home," provides buyers and renters with ______.
Information about identifying and controlling lead-based paint hazards
What impact does the Clean Water Act have on wetlands use?
It governs the use, maintenance, and development of wetlands.
What is done to a landfill that is put out of commission?
It is capped.
What role does the Brownfields Law play in the assessment and cleanup of unused commercial/industrial sites that may contain hazardous waste?
It provides funds.
Which of these statements about the Superfund Amendments and Reauthorization Act (SARA) is true?
Landowners who perform due diligence when purchasing a property, including a Phase I site assessment, may be immune from liability if the property is found to be contaminated.
Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint?
Lead
Even though the laws are different in every state, sellers must typically disclose ______, information that would be important to a person in deciding to purchase a home.
Material facts
What is the federal program that was created to help mitigate future flood losses across the country?
National Flood Insurance Program (NFIP)
Which one of the following statements about asbestos is true?
No amount of it is considered safe.
Marilyn is reviewing the inspection report with her buyer clients. Which of the following issues in the report should Marilyn flag as most significant?
Presence of mold
Lucas, a landlord, repeatedly refuses to abide by an EPA order that he abate lead-based paint hazards in one of his rental properties. Which of the following penalties are federal authorities permitted to impose?
Prison
Rennie has consistently violated the Residential Lead-Based Paint Hazard Reduction Act by neglecting to provide prospective buyers with the pamphlet, "Protect Your Family From Lead in Your Home." In addition to a fine, what other penalty is Rennie most likely to incur?
Requirement to return to compliance with the law
In full seller disclosure states, whose responsibility is it to complete the seller disclosure form which will be reviewed by prospective buyers?
Seller
In states where full disclosure isn't required, whose responsibility is it to disclose any items required by law and respond honestly to any questions about the property's condition?
Seller
Why is it important for licensees to understand the definition of a stigmatized property?
So they can make any required disclosures.
Which one of the following could be a clue that a property was formerly a waste disposal site?
Soft spots, mounds, and discolored soil
What is the term for sites identified by the EPA under the Comprehensive Environmental Response, Compensation, and Liability Act?
Superfund site
Which of these scenarios would require an environmental impact statement?
The U.S. National Park Service plans to build a new visitor center on property owned by the federal government.
Marcus and Lucinda decided to play a round of golf on a beautiful new course in their neighborhood. As they're making the rounds, they notice vent pipes extending from the ground in various places. What might this signify?
The course is built on a capped landfill.
Which of the following would NOT likely be a location issue of concern to buyers? A)The house sits in a historic preservation district. B)The house was built in 1985. C)The property borders a wetland. D)The property sits in a flood plain.
The house was built in 1985.
Your buyer clients have access to property tax information for each listing that you've given them. Why are they asking you about county tax assessment schedules?
The property taxes may change drastically after reassessment.
Which of these actions is a violation of the Residential Lead-Based Paint Hazard Reduction Act when a property constructed before 1978 is being marketed by a licensee?
The seller's agent fails to provide the pamphlet, "Protect Your Family from Lead in Your Home," to prospective buyers.
Which of the following is a planning and zoning issue that most prospective buyers might need to know?
The zoning designation for the given property
Zelda has fifteen acres of wetlands with a channel on the back edge of her property that leads to a waterway. She would like to clear the channel of gravel and sediment so she can get her fishing boat in and out more easily. Which of the following is a true statement? A)No permit is required since the Zelda is only removing gravel and sediment. B)She can't remove the gravel and sediment. C)This activity may require a permit since a wetland area is involved and special federal and state protections may be in place. D)Zelda doesn't need a permit since the channel is on her property.
This activity may require a permit since a wetland area is involved and special federal and state protections may be in place.
What is the primary purpose of the Superfund Amendments and Reauthorization Act (SARA)?
To release homeowners from the responsibility of cleaning up hazardous substances if the homeowner didn't know they existed
While walking around the exterior of a rural home she's inspecting, Juanita noticed a metal vent pipe sticking out of the ground 25 feet from the house. She documents this because it may be a sign of what potential environmental hazard?
Underground storage tank
What is the most common way that asbestos enters the body?
When asbestos fibers decay or are disturbed, the friable particles can be inhaled.
Emma is interested in purchasing a property with a big fenced backyard, because her eventual goal is to open an in-home daycare. Which of the following is a zoning issue that you would encourage her to research?
Whether or not current regulations permit home-based businesses.
Jared wants to purchase property. One of the properties his agent shows him was formerly zoned for commercial use. It has a steep drop off at the back of the property, as well as some soft spots and mounds. Should Jared's agent recommend that he have a home inspector investigate it?
Yes, these are clues that the property may have been used as a waste disposal site.
Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks you why it's an issue, how do you respond?
You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.
