Real Estate Unit 21-Environmental Issues and the Real Estate Transaction

The EPA now requires the following from sellers, landlords, and renovators of residential dwellings built before 1978: -Landlords must disclose known information on lead-based paint and hazards before leases take effect -Sellers have to disclose known information on lead-based paint and hazards prior to execution of a contract for sale

-Real estate professionals must provide buyers and lessees with "Protect Your Family from Lead in Your Home," the pamphlet created by the EPA, HUD, and the U.S. Consumer Product Safety Commission.

Federal and state laws regarding storage of hazardous substances or liquid petroleum products apply to underground storage tanks that have at LEAST what percentage of their volume underground?

10%

Asbestos is a fire-resistant mineral that was once used extensively as insulation and to strengthen other materials

It is found in most construction, including residential, built from the early 1940s until 1978, when its use was banned.

What is provided by the Brownfields Law?

Funding to clean up abandoned industrial sites

sara

focuses on the cleanup of hazardous substances on property

The process used to extract natural gas from deep layers of rock is known as

fracking

Carbon monoxide is a colorless, odorless, and tasteless gas that occurs as a by-product of BURNING fuels

Carbon monoxide is quickly absorbed by the body, where it inhibits the blood's ability to transport oxygen, resulting in dizziness and nausea

If a house if built before 1978, disclosure form must be completed.

For FHA/VA/USDA/ government loans, appraisers are really big on chipping paint

How can property owners help avoid carbon monoxide exposure?

Have fuel-burning heating systems checked and maintained annually

Where in the United States does radon occur?

In every state in the United States

RADON is a naturally occurring, colorless, odorless, tasteless, radioactive gas produced by the DECAY of other radioactive substances RADON=DECAY=MITIGATION

Mitigation consists of removing the radon before it seeps into the house

A seller accepts an offer on her home, which was built in 1892. Which of these statements about lead- based paint is TRUE: -The seller must attach a lead-based paint disclosure statement to the sales contract -The buyer is entitled to receive a pamphlet that describes the hazards posed by lead-based paint -If the seller is aware of any lead-based paint on the premises, she must disclose that fact to the buyer.

No one is required to test for lead, but the federal law gives the prospective buyer 10 days (or any time agreed to, or the buyer may waive the right) to have the home tested for lead at the buyer's expense.

The flame-resistant chemical compounds that were often used in electrical equipment, such as transformers, are known as

PCBs. HINT: equiPment=Pcbs

Underground storage tanks (USTs) are commonly found on sites where petroleum products are used or where gas stations and auto repair shops are or were located. They also may be found in a number of other commercial and industrial establishments. Federal and state laws impose strict requirements on a landowner whose property contains an underground storage tank

The following types of tanks are among those that are exempt from the federal regulations: -Tanks that hold less than 110 gallons -Farm and residential tanks that hold 1,100 gallons or less of motor fuel used for noncommercial purposes -Tanks that store heating oil burned on the premises -Tanks on or above the floor of underground areas, such as basements or tunnels -Septic tanks and systems for collecting storm water and wastewater

Which of these would disqualify someone from claiming innocent landowner immunity under the Superfund Amendments and Reauthorization Act (SARA)?

The owner had only constructive knowledge of the damage. Landowners cannot claim innocent landowner immunity if they had actual or constructive knowledge of the damage.

What do urea-formaldehyde foam insulation (UFFI), lead-based paint, and asbestos have in common?

They were all used at one time in residential construction.

A prospective buyer of commercial or industrial property should include in an offer to purchase

a contingency to allow for an environmental site assessment.

Real estate professionals should always recommend testing the water supply when it is not part of

a municipal water supply.

The parties to a real estate transaction should be aware that many older tanks have never been registered

and may not comply with federal and state laws.

Defunct, derelict, or abandoned commercial or industrial sites, many of which are suspected to contain toxic waste, are called

brownfields.

Waste disposal sites are

capped with soil for aesthetic reasons.

The colorless, odorless, and tasteless gas that occurs as a by-product of incomplete combustion of fuels such as wood, oil, and natural gas, is

carbon monoxide.

formaldehyde

colorless chemical with a strong odor used widely in the manufacture of building materials and many household products

Federal and state laws have defined many of the liabilities related to hazardous waste; although

common law is being used for further interpretation

cercla

created process to identify responsible parties to clean hazardous waste sites

Real estate professionals and their buyers should be particularly alert to evidence of the presence of an underground storage tank (UST), such as

fill pipes and stained soil.

Those who could be liable for damages related to environmental hazards include

hazard insurance carriers, if such coverage was included in the initial policy.

innocent landowner

immunity status created to protect a landowner from liability

CERCLA regulations for administration of the Superfund, which helps pay for cleanup of uncontrolled hazardous waste sites,

impose strict, joint and several, and retroactive liability on potentially responsible parties.

underground water contamination

is a major problem in the United States. According to the EPA, approximately 40% of the 3 million to 5 million underground storage tanks that exist in the United States are leaking.

Capping is the method of

laying soil over the surface of a landfill and planting vegetation.

The water table

may be several hundred feet underground or near the surface.

Environmental audits

may occur at any stage in a transaction.

Capped landfills have been used as

parks and golf courses

superfund

provided money to clean up uncontrolled hazardous waste sites

Cancer is known to be associated with

radon.

Lead-based paint disclosure is

required by federal law.

As it relates to environmental hazards,

sellers often carry the most exposure to liability.

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is administered and enforced by

the Environmental Protection Agency.

The federal underground storage tanks (UST) program is regulated by

the Environmental Protection Agency.

The Brownfields Law is officially called

the Small Business Liability Relief and Brownfields Revitalization Act.

If environmental hazards are discovered and the landowner had no previous knowledge of their existence,

the landowner might still be held responsible.

When a release or a threat of release of a hazardous substance has occurred on a property, under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the responsible party for cleanup is

the landowner.