9/19/2019 UNIT 20 ENVIRONMENTAL ISSUES IN REAL ESTATE 1 2 3 1
9/19/2019 4 • 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 5 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. 6 2
9/19/2019 THE KNOWN PRESENCE OF AN ENVIRONMENTAL HAZARD IS A MATERIAL FACT. Mold 7 HAZARDOUS SUBSTANCES : Insulation 1978 Abatement and Friable Encapsulation 8 9 3
9/19/2019 What makes Asbestos dangerous? When it is messed with or becomes Friable – airborne! 10 LEAD-BASED PAINT Banned in residential properties in 1978 Causes brain, kidney, nervous system and red blood cell damage; children most at risk 11 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 12 4
9/19/2019 2010 Renovation, Repair and Paint Program requires work in housing/child-occupied facilities done by certified workers 13 WHAT IS RADON? • NATURALLY OCCURRING GAS • COLORLESS, ODORLESS • RADIOACTIVE 14 HOW DANGEROUS IS RADON? • #1 CAUSE OF LUNG CANCER IN NON-SMOKERS IN THE US • 2 ND LEADING CAUSE OF LUNG CANCER OVERALL • ABOUT 21,000 LUNG CANCER DEATHS/YEAR 15 5
9/19/2019 ARE RADON LEVELS HIGH IN NC? YES Courtesy of http://www.ncradon.org/ncradon/# 16 EPA’s safe level is 4.0 picocuries (a measure of the rate of radioactive decay of radon) 17 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. 18 6
9/19/2019 HOW IS RADON DETECTED? DETECTORS -do not need power -More Expensive -may be purchased at -Requires Power to Operate various home supply or -Provides most Complete hardware stores or on Info NC Radon Program’s -Must be Regularly and website Properly Calibrated 19 HOW ARE RADON LEVELS CORRECTED? INSTALLATION OF RADON MITIGATION SYSTEM 5: Junction Boxes 4: Vent Pipe 3: Sealing and Caulking 2: Plastic Sheeting 1: Gas-Permeable Layer 20 THE MERE PRESENCE OF A RADON MITIGATION SYSTEM IS NOT CONSIDERED A MATERIAL FACT. 21 7
9/19/2019 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? 22 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? 23 Should brokers recommend that buyers have radon tests performed? Yes! 24 8
9/19/2019 BROKER’S DUTY TO DISCOVER ASK QUESTIONS AND INVESTIGATE! 25 26 RADON RADIOACTIVE GAS THAT IS ODORLESS, COLORLESS AND TASTELESS 2 ND LEADING CAUSE OF LUNG CANCER REDUCED BY VENTILATION SYSTEMS OR EXHAUST FANS (MITIGATION SYSTEM) 27 9
9/19/2019 28 Urea-Formaldehyde 29 Urea-formaldehyde UFFI Causes Foam Testing respiratory, insulation can eye and and fiber determine skin board toxic levels problems 30 10
9/19/2019 Death from Carbon Monoxide 20,000 Emergency Room Visits, 400 deaths per year 31 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 32 33 11
9/19/2019 EMF’S: ELECTROMAGNETIC FIELDS • Suspected to cause cancer, hormonal changes and abnormal behavior • Conflicting evidence about health hazards 34 35 Underground Waste storage tanks Pesticides disposal sites Gas/oil/road Herbicides salt 36 12
9/19/2019 37 UNDERGROUND STORAGE TANKS (USTS) • FOUND AROUND PETROLEUM PRODUCTS • HOMES HEATED WITH FUEL OIL • GAS STATION AND AUTO Clean up is on the owner; if the UST REPAIR SHOPS can’t be removed or • WARNING! VENTS AND FILL remediated, it’s a PIPES PROTRUDING FROM THE cloud on the title to GROUND the property 38 Landfill in Cabarrus County 39 13
9/19/2019 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 40 MOLD 41 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 42 14
9/19/2019 Dangers Areas Concerns Oxygen, Respiratory, Stachybotrys moisture itchy eyes, (Black mold) headaches EIFS, wallpaper, roof leaks, unvented Home appliances, Toxic inspections- landscaping no insurance and gutters 43 • CERLA - COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT CREATED IN 1980 • CREATED SUPERFUND • IDENTIFIED PRPS - POTENTIALLY RESPONSIBLE PARTIES • INNOCENT LANDOWNER IMMUNITY 44 NC ENVIRONMENTAL LAW Petroleum Underground Dredge Storage Tank and Fill Clean up Act Act NC Coastal NC Sediment Area Pollution and Management Control Act Act 45 15
9/19/2019 LIABILITY OF REAL ESTATE PROFESSIONALS: Inspectors Environmental auditors and EIS Ask the owner 46 16
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