9/19/2019 UNIT 20 ENVIRONMENTAL ISSUES IN REAL ESTATE 1 2 3 1 - - PDF document

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UNIT 20 ENVIRONMENTAL ISSUES IN REAL ESTATE

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• Why Agents should be aware of environmental

hazards

• Learn the warning signs, characteristics,

causes and remedies to the most common hazards found in real estate transactions

• The Need to Disclose
• North Carolina environmental laws and their

relevance

• Liability Issues

Preservation of state’s environment enhances quality of life and strengthens property values Burden of disclosure is heaviest when property is transferred. Means added responsibility/liability for agents especially if client suffers harm because of a hazardous substance.

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THE KNOWN PRESENCE OF AN ENVIRONMENTAL HAZARD IS A

MATERIAL FACT.

Mold

HAZARDOUS SUBSTANCES: 1978 Insulation

Abatement and Encapsulation

Friable

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What makes Asbestos dangerous?

When it is messed with

• r becomes

Friable – airborne! LEAD-BASED PAINT

 Banned in residential properties in 1978  Causes brain, kidney, nervous system and red blood cell damage; children most at risk

EPA and HUD requires disclosure through Lead-based Paint Addendum and brochure Lead-based Paint Hazard Reduction Act  For all residential sales AND rental contracts built prior to 1978  10 day assessment with rescission

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 2010 Renovation, Repair and Paint Program requires work in housing/child-occupied facilities done by certified workers

WHAT IS RADON?

• NATURALLY OCCURRING GAS
• COLORLESS, ODORLESS
• RADIOACTIVE

HOW DANGEROUS IS RADON?

• #1 CAUSE OF LUNG CANCER IN NON-SMOKERS IN

THE US

• 2ND LEADING CAUSE OF LUNG CANCER OVERALL
• ABOUT 21,000 LUNG CANCER DEATHS/YEAR

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ARE RADON LEVELS HIGH IN NC?

Courtesy of http://www.ncradon.org/ncradon/#

YES

EPA’s safe level is 4.0 picocuries

(a measure of the rate of radioactive decay of radon)

HOW WOULD A BROKER KNOW THAT A RADON LEVEL IS 4.0 PCI/L OR HIGHER?

SELLER OR PREVIOUS PROSPECTIVE BUYER CONDUCTED A RADON TEST.

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HOW IS RADON DETECTED?

• More Expensive
• Requires Power to Operate
• Provides most Complete

Info

• Must be Regularly and

Properly Calibrated

• do not need power
• may be purchased at

various home supply or hardware stores or on NC Radon Program’s website

DETECTORS HOW ARE RADON LEVELS CORRECTED?

INSTALLATION OF RADON MITIGATION SYSTEM 1: Gas-Permeable Layer 2: Plastic Sheeting 3: Sealing and Caulking 4: Vent Pipe 5: Junction Boxes

THE MERE PRESENCE OF A RADON MITIGATION SYSTEM IS NOT CONSIDERED A MATERIAL FACT. 19 20 21

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Question 25 asks:

Are there any hazardous or toxic substances, materials, or products (such as asbestos, formaldehyde, RADON GAS, methane gas, lead-based paint) which exceed government safety standards, any debris (whether buried or covered) or underground storage tanks, or any environmentally hazardous conditions (such as contaminated soil or water, or other environmental contamination) which affect the property?

If a broker knows that a property’s radon level is 4.0 pCi/L or higher, how might the broker disclose the information to clients and customers?

Should brokers recommend that buyers have radon tests performed?

 Yes!

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BROKER’S DUTY TO DISCOVER ASK QUESTIONS AND INVESTIGATE!

• RADIOACTIVE GAS THAT IS

ODORLESS, COLORLESS AND TASTELESS

• 2ND LEADING CAUSE OF LUNG

CANCER

• REDUCED BY VENTILATION SYSTEMS

OR EXHAUST FANS (MITIGATION SYSTEM)

RADON

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Urea-Formaldehyde Urea-formaldehyde

Foam insulation and fiber board

Causes respiratory, eye and skin problems Testing can determine toxic levels

UFFI

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Death from Carbon Monoxide

20,000 Emergency Room Visits, 400 deaths per year

CARBON MONOXIDE (CO)

• COLORLESS, ODORLESS GAS FROM BY-

PRODUCT OF FUEL BURNING

• FURNACES, WATER HEATERS, SPACE

HEATERS, FIREPLACES AND WOOD STOVES

• CO DETECTORS REQUIRED IN BUILDINGS

WITH FOSSIL FUELS

• CO POISONING CAUSES DEATH

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EMF’S: ELECTROMAGNETIC FIELDS

• Suspected to cause

cancer, hormonal changes and abnormal behavior

• Conflicting evidence

about health hazards

Waste disposal sites Underground storage tanks Pesticides Herbicides Gas/oil/road salt

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UNDERGROUND STORAGE TANKS (USTS)

• FOUND AROUND PETROLEUM

PRODUCTS

• HOMES HEATED WITH FUEL OIL
• GAS STATION AND AUTO

REPAIR SHOPS

• WARNING! VENTS AND FILL

PIPES PROTRUDING FROM THE GROUND Clean up is on the

• wner; if the UST

can’t be removed or remediated, it’s a cloud on the title to the property

Landfill in Cabarrus County

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WASTE DISPOSAL SITES/LANDFILLS

• The “hole” lined with clay or

liner to prevent leakage into ground water

• Capping is 2-4 feet of

topsoil, grass, and ventilation

MOLD

MOLD

NCREC – the mere presence of mold is NOT a material fact unless it is excessive or in unusual places General rule: More than one square foot of mold Brokers need to ask to find the CAUSE

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Stachybotrys (Black mold)

Toxic

Areas

Oxygen, moisture

EIFS, wallpaper, roof leaks, unvented appliances, landscaping and gutters

Concerns

Respiratory, itchy eyes, headaches Home inspections- no insurance

• CERLA- COMPREHENSIVE ENVIRONMENTAL

RESPONSE, COMPENSATION, AND LIABILITY ACT CREATED IN 1980

• CREATED SUPERFUND
• IDENTIFIED PRPS- POTENTIALLY RESPONSIBLE

PARTIES

• INNOCENT LANDOWNER IMMUNITY

NC ENVIRONMENTAL LAW

Petroleum Underground Storage Tank Clean up Act NC Coastal Area Management Act Dredge and Fill Act NC Sediment Pollution and Control Act

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LIABILITY OF REAL ESTATE PROFESSIONALS: Inspectors Environmental auditors and EIS Ask the owner

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