Real Estate Toolkit www.carst.ca Canadian Association of Radon - - PowerPoint PPT Presentation

www.carst.ca Canadian Association of Radon Scientists and Technologists Helping Canadians Reduce Radon Risk

Real Estate Toolkit

www.carst.ca Canadian Association of Radon Scientists and Technologists Helping Canadians Reduce Radon Risk

• Discussing Radon during Real Estate Discussions
• International Picture
• Recommended Options
• Tools for Real Estate

www.carst.ca Canadian Association of Radon Scientists and Technologists Helping Canadians Reduce Radon Risk

• Homeowners tru

rust their ir Real Est state agent

• Homeowners are

re attentive

• Homeowners are

re prio rioritizing their ir sp spending

Our message: Radon is an important consideration when purchasing a house.

Homebuyers trust their real estate agent. Real estate agents must have accurate information in order to guide their clients.

Roof – 10 years old: $5 000+ High Efficiency Gas Furnace- 3 years old: $3 000 Older Windows: $10 000+ to replace Pool maintenance – $500 annual maintenance Hot Water Tank – 8 years old: $800 to fix

Prioritizing Homeowner Expenses

Roof – 10 years old: $5 000+

• Lower priority/5 more years

High Efficiency Gas Furnace: 3 years old: $3 000

• Low priority/many more years

Older Windows - $10 000 to replace

• Medium priority: but not a health

concern

Pool - $500 maintenance per year Hot Water Tank – 8 years old; $800 to fix

• High priority/needs fixing,

RADON

• Test when we

move in

• $3500 to fix
• Health Concern

= High Priority

Prioritizing Homeowner Expenses

US:

• Short Term Tests; 48 hrs
• Real Estate Testing is

mandatory in some states Sweden: ask for a long term radon test report (current within 5 years)

• If no report, install a long term

test after sale with a clause I the sales contract

• Occasionally there will be a

short-term indicator test prior to sale; followed by a long-term test after sale UK: (affected areas – high radon areas)

• Ask for a long term radon test report
• If no report; discuss a retention with your lawyer

Norway: ask for a long term radon test report (2 months duration between October and March).

Real Estate options for Canada…

Option A Test – Fix - Sell Option B Sell – Test - Fix Option C

Radon Indicator/Assessment

Option A Test – Fix - Sell

Option A

Advantages: Disadvantages:

• Proactive
• Provide

a healthy house for all future

• wners
• Seller peace of mind
• Return on Investment may

be low until buyers realize the prevalence and issues with radon

• Current

buyers may not differentiate between a mitigated and non- mitigated home

Option B

Advantages: Disadvantages:

• People

living in and investing in the house make the decision

• Fixes the house for all

future occupants

• People

purchasing house know test was done properly

Option B Sell – Test - Fix

• Buyers

may want a reduction in sale price

• Buyer

may not have cash available to cover mitigation after home purchase (especially first time home buyer).

How to ease the $3000 cost?

• This could be achieved through a mortgage plus improvements where

sufficient money (say $3000) is added to the mortgage and held in lawyer’s trust fund to be used for remediation should long term testing reveal higher than acceptable levels. If the test comes back with acceptable levels, the money held would be applied back to the principle of the mortgage, without penalty.

Option B

www.carst.ca Canadian Association of Radon Scientists and Technologists Helping Canadians Reduce Radon Risk Why did

id we develop Option C?

Providing Guidelines & Structure

• Real Estate agents are protecting buyers and asking for a

radon test during the inspection

• The US has 48 hr Real Estate testing and information

spillover affects Canadians

• Lack of clarity/guidelines in the process has lead to

litigation

• Home Inspectors are looking for guidance on what to

do/better options from US Guidance

• Unfair prejudice against a home because of lack of

guidelines/information about radon

Option C

Radon Indicator/Assessment

Option C - Explained

• Short Term Test, minimum 4 days
• Result above 75 Bq/m3 initiates moving money

into escrow for radon mitigation

• Follow up long-term test conducted during first

winter after new owner moves in

• Provides guidelines on how to conduct the test

regarding consistency of process, notice of testing and some guidance for prevention of interference

Option C

Radon Indicator/Assessment

Option C

• Uses conservative indicator

level to estimate the likelihood that radon mitigation would be required

• Radon Mitigation based on

Long-Term Test

• Provides structure for

realtor/purchaser who is determined to have a radon test conducted

Option C

Radon Indicator/Assessment

Disadvantages:

• Uses a short term test which will
• nly provide an indication for that

test period

• False low reading could give a new

homeowner a false sense of security

• Preventing interference isn’t

guaranteed:

• Testing done by seller and can be

manipulated to create a false low

• Testing done by the buyer could be

manipulated to create a false high

• Penalizes the seller by putting the

cost onus on them

Advantages:

www.carst.ca Canadian Association of Radon Scientists and Technologists Helping Canadians Reduce Radon Risk

Tools fo for Real Est state Disc iscussions

Hel elp to to und nderstand rad radon: Make e TESTING a a pri priority

Radon? =

Hel elp to to und nderstand rad radon miti itigation: Make e FIX FIXING a a pri priority

Radon Mitigation In Information

www.carst.ca Canadian Association of Radon Scientists and Technologists Helping Canadians Reduce Radon Risk

Don’t forget your CARST resources…

Child Care Resources Workplace Resources Postcard Handouts Mitigation Labels

4” (6 versions available, not all shown)

Measurement Labels

www.carst.ca Canadian Association of Radon Scientists and Technologists Helping Canadians Reduce Radon Risk

Questions, comments?