Unit 2: Material Facts Related to Property Condition and Location

Which one of the following statements about asbestos is true?

No amount of it is considered safe.

Missing shingles

Wind damage

Asbestosis

a chronic lung disease caused by breathing in the fibers, which are microscopic

Megan's Law

all sex offenders have to be registered

What if you're on an older property or a previous industrial site? These are clues that there may be an underground oil tank on a property?

Basement pipe leading nowhere Vents sticking out of the ground You may also find a plate covering the oil fill area.

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.

In caveat emptor states, buyers will usually identify easements and encroachments while doing due diligence. Easements and encroachments are considered material facts.

Both true

Action to be taken to prevent radon in homes

Buy a radon detection kit and test the home. Install a system to vent and filter radon out of the home.

most common wood-eating pests

Carpenter ant Powderpost beetle Termite

Which of the following is a common problem with roof shingles?

Discoloration or curling

Three days ago, there was a severe thunderstorm in Shirley's town. Today, there's still a large puddle of water on her property, but it doesn't appear the neighboring properties have any puddles. This could indicate a(n) ______ problem.

Drainage

In which five of these items might you find the presence of lead?

Dust Paint Pipes Soil Drinking water

Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property?

Encroachment

What are some actions that homeowners can take to protect their homes from wood-eating pests?

Examine the home for signs of infestation or damage Call a professional to eradicate the problem Hire a professional to perform annual pest inspections

Discoloration around windows Staining around chimney

Fire damage

Discolored soil, soft spots, or mounds on the land could be indicators of a(n) ______.

Former waste disposal site

How can you determine whether there is asbestos in a home?

Hire an accredited individual to test for asbestos

Signs of Beetles

Holes bored into wood

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 lot that is adjacent to or partially on wetlands

Which of the following is an example of an easement?

A path providing neighborhood access to a pond cuts through part of Hillary's property.

A sloping hearth is a common ______ issue.

Chimney/fireplace

Which of these items around the fireplace could be a clue that there is a problem?

Cracked orsloping firebox or hearth

The listing agent is required to get a new survey done to identify easements and encroachments. Easements will only appear on up-to-date surveys.

False statments

Discoloration along walls and sagging or uneven floors can be signs of ______.

Flood damage

Buyers should know what they're getting into by determining lot size, as well as any easements or encroachments that exist. How can they determine this?

Have survey performed

What two environmental conditions are prime for mold growth?

Moisture + lack of air circulation

Signs of Termites

Mud tubes/ holes bored into wood Tiny wings or fecal pellets

Tanks that are not decommissioned properly or those that leak can cause problems, including groundwater contamination. What other items can lead to groundwater contamination?

Nearby mining activities Nearby landfill Agricultural pesticides Faulty septic systems

Millie and Gary are searching for a home in a great school district. If the public school isn't highly rated, then options such as charter schools and private schools should be plentiful. Some states don't include school district information on the seller disclosure form, so how might they learn about school options?

Neighborhood website

An underground storage tank is not likely to be found on the property Maureen is interested in. In which two locations are underground storage tanks likely to be found, and for which uses?

Older homes to store heating oil Commercial or industrial buildings to store chemicals

The sunroom addition wasn't permitted. What three actions may the city (or county) require to rectify the situation?

Partial disassembly to inspect the work Full disassembly back to the original state Correcting issues associated with the addition

What good is a room with a view if that room is full of water because it's in a flood zone? As Sarah mentioned, there are certain locations that may cause issues. Which of these may be an issue?

Property located in flood zone Property is located in a conservation area Property is a registered historic building Property borders a wetland

Prevention and treatment for pests

Remove moisture annual inspection Hire professionals to spray insecticide or pesticide

Which of these items could contain asbestos? Select all that apply.

Rocks and soil Flooring Walls Heating systems Roofs

Radon is typically found in a couple of places. In which two of these would you possibly find radon?

Soil + private wells

A prospective buyer is curious why a previous owner is selling such a perfect home. The licensee knows that the previous owner recently died due to complications from AIDS. How should the licensee respond to the prospective buyer's inquiry?

The licensee can't disclose that a previous owner had HIV or AIDS.

Marshall is a home inspector who is walking the lot of the property he's inspecting with a survey in hand. Which of the following will he note as an encroachment on the inspection report?

The neighbor installed a basketball hoop next to his driveway, six inches over the property line.

As Brandon's listing agent, Lily must disclose all known material facts relative to Brandon's property. Which of the following is a zoning-related fact that Lily might have to disclose to prospective buyers?

The property is right in the middle of a historic preservation district.

The seller disclosure indicates that the central air conditioning unit is 26 years old. Why might this worry Margot's buyers?

The unit may need to be replaced.

Disclosing that a previous owner or resident had HIV or AIDS is a fair housing violation.

True

Aside from paint, where does lead most commonly appear?

Water pipes

What is the most common way that asbestos enters the body?

When asbestos fibers decay or are disturbed, the friable particles can be inhaled.

You're showing your buyers a house that clearly has a second-story addition. What important thing do you need to find out from the sellers?

Whether or not the addition was permitted

Seth and Temperance are looking to move their family. They have a four-year-old son starting school next year and want a home that will allow their son to attend a certain school. Which of these items would be the most important to them?

Whether school boundaries will be changing

As a part of a buyer's due diligence, which location-related issues should be researched?

Whether the property is insurable, located in a wetland, or located in an historic area

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.

Easement

a right to cross over or otherwise use another person's land for a specified purpose

Property tax abatement

eliminate or significantly reduce property tax payments on a home for years or even decades The purpose of these programs is to attract buyers to locations with lower demand, such as city neighborhoods that are in the midst of revitalization efforts

Signs of carpenter ants

holes bored into wood Unexplained sawdust (frass)

"In nature, asbestos....

is a fibrous mineral naturally found in rocks and soil worldwide

encroachment

the intrusion of some structure or object across a property's boundary line