Chapter 06: Environmental Issues in Real Estate Flashcards
In regulations regarding lead-based paints, HUD requires that:
A. all owners of properties built prior to 1978 test for its presence
B. paint must be removed from surfaces before selling
C. known paint hazards must be disclosed
D. only licensed contractors may engage in removal of any lead-based paint
C. known paint hazards must be disclosed
(On all pre-78 homes that are subject to sale or rental the buyer/tenant must receive a disclosure and copies of any and all reports indicating the presence of lead based paint)
The purpose of CERCLA is:
A. to create liability and a pool of funds for the cleanup of environmental hazards
B. to regulate the distribution and handling of hazardous materials
C. to inform the public of environmental hazards
D. to regulate the disclosure of environmental hazards in real estate transactions
A. to create liability and a pool of funds for the cleanup of environmental hazards
(CERCLA, the Comprehensive Environmental Response, Compensation and Liability Act (Superfund) was created to cover the costs of cleaning up environmentally hazardous areas)
A colorless, odorless gas that emanates from the ground and can build to dangerous toxic levels in homes is called:
A. asbestos
B. carbon monoxide
C. radon
D. asbestos
C. radon
(Radon is a naturally occurring gas produced by the presence of underground uranium. It is colorless and odorless and can rise to dangers levels if the home is not well ventilated)
A seller has indicated to the listing agent that the heating closet area is lined with asbestos. The seller tells the listing agent that the asbestos was tested and since it was not friable posed no environmental hazard. Which of the following would be an appropriate comment for the listing agent to make to prospective buyers?
A. There is no dangerous asbestos in this home.
B. The asbestos was tested and poses no danger to anyone who occupies the home.
C. The home has asbestos.
D. I am not aware of any dangerous asbestos in the home.
C. The home has asbestos.
(Licensees should be cautious about characterizing the danger of environmental hazards and should simply disclose if they are aware or should be aware of environmental hazards)
The entity in North Carolina that is responsible for environmental and natural resources is:
A. NCREC
B. NCDENR
C. Superfund
D. CERCLA
B. NCDENR
(NCDENR is the North Carolina Department of Environment and Natural Resources)
All of the following are correct regarding Superfund and CERCLA, EXCEPT:
A. once a site has been determined to be a Superfund site, the disclosure lasts forever
B. Superfund imposes strict liability
C. current and past owners can be jointly and severally liable
D. only the current owner of a property is liable for its cleanup
D. only the current owner of a property is liable for its cleanup
(The current owner, past owners and original contaminant can all be held liable under CERCLA)
The federal mandatory 10-day inspection period for lead-based paint in pre-1978 residences applies to:
I. properties for sale or exchange II. properties for rent or lease
A. I only
B. II only
C. Both I and II
D. Neither I nor II
C. Both I and II
(The mandatory lead based paint disclosure rule applies to both sales and rentals)
Asbestos is most dangerous to consumers and homeowners when:
A. it is wet
B. it is not friable
C. it is moved or relocated
D. it is encapsulated
C. it is moved or relocated
(Moving or relocating asbestos makes it friable meaning that it’s airborne fibers can be ingested into the lungs. It is safe if it remains encapsulated)
What is the best way to correct the possible problems that a home may experience in regard to the buildup of radon gas?
A. ventilation
B. removal of the soil
C. increasing the amount of the home’s insulation
D. radon cannot be remediated once it is present
A. ventilation
(Since Radon is a gas it usually poses problems in homes which lack adequate ventilation)
Under federal law, the mandatory inspection period regarding lead-based paint is:
A. 3 days
B. 5 days
C. 10 days
D. 15 days
C. 10 days
The process of covering a dump site with soil is known as:
A. capping
B. encapsulation
C. backfilling
D. restructuring
A. capping
(Capping is just the term used to describe the process)
How is the human body affected by exposure to lead-based paint?
A. it develops cancer
B. it causes brain damage
C. it causes leukemia
D. it causes mesothelioma
B. it causes brain damage
(The ingestion of lead based paint chips is toxic and can cause death or brain damage especially in young children)
The disease created by the breathing in of friable asbestos fibers is:
A. mesothelioma
B. brain damage
C. kidney damage
D. heart disease
A. mesothelioma
(Mesothelioma or asbestosis is the cancer caused by exposure to asbestos)
The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) contains all of the following provisions, EXCEPT:
A. the ACT created a national database of hazardous waste sites
B. the ACT created joint and several liability for all current and past owners of the property
C. the ACT imposes strict liability for a property owner
D. the ACT requires mandatory inspections for hazardous waste prior to any transfer or purchase of the property
D. the ACT requires mandatory inspections for hazardous waste prior to any transfer or purchase of the property
(Inspections are not mandatory, but a buyer should conduct due diligence regarding the presence of hazardous waste. CERCLA also known as Superfund created joint and several liability of all property owners meaning that the current owner as well as past owners can be held responsible for the clean up. It is also a strict liability statute meaning that there is no defense of a property owner and a national list of hazardous waste sites exist on the EPA website)
Properties built prior to 1978 require a lead-based paint disclosure at the time of sale or rental of the property. All of the following are true regarding lead-based paint and its disclosure, EXCEPT:
A. the buyer has 10 days within which to conduct any inspections for lead-based paint.
B. the disclosure form must be completed by the seller and signed by both the seller and the buyer.
C. the disclosure is to be accompanied with a brochure on the dangers of lead-based paint.
D. a lead-based paint test is mandatory and sellers are required to remediate for any lead-based paint dangers.
D. a lead-based paint test is mandatory and sellers are required to remediate for any lead-based paint dangers.
(On all properties constructed prior to 1978 a lead-based paint disclosure is mandatory and is accompanied by a brochure. The seller is not required to test, remove or remediate for any lead-based paint issues)
