Chapter 5 Review-Property Disclosures and Environmental Issues

Question 1

What does CERCLA stands for?

Answer 1

Comprehensive Environmental Response, Compensation and Liability Act

Question 2

What does SARA stand for?

Answer 2

Superfund Amendments and Reauthorization Act

Question 3

A _____________ substance is any material that poses a threat to the public health or environment.

Answer 3

hazardous

Question 4

What is usually solid and has the potential to cause or significantly contribute to an increase in mortality?

Answer 4

hazardous waste

Question 5

The fiduciary duty of disclosure requires licensees to disclose any known _________ _________ and this includes ________________ issues

Answer 5

material defects

environmental

Question 6

What are hidden defects that are not found upon inspection called?

Answer 6

latent defects

Question 7

What defects, that can be seen by anyone, called?

Answer 7

patent

Question 8

What does “caveat venditor” mean?

Answer 8

Let the seller beware

Question 9

What does “caveat emptor” mean?

Answer 9

Let the buyer beware

Question 10

Any property can become ___________ because of an event that occurred that would affect the desirability of the property.

Answer 10

stigmatized

Question 11

The federal Lead-based Paint Disclosure law requires that sellers disclose any known lead-based paint hazard with property built prior to what year?

Answer 11

1978

Question 12

How many days are buyers given to have an inspection done for lead paint hazards?

Answer 12

10 days

Question 13

A real estate licensee is responsible for informing the _________ and _____________ of their obligations to complete the form, providing the lead-based paint disclosure form, providing the brochure and attaching to a contract or inserting language in the contract of the “Lead Warning Statement”

Answer 13

Seller

Landlord

Question 14

Under the federal Lead-based Paint Disclosure law a seller, lessor, or agent who fails to give the proper information can be sued for ____________ the amount of damages and they may be subject to civil and criminal penalties.

Answer 14

triple

Question 15

What does RRP stand for?

Answer 15

Renovation, Repair and Painting Rule

Question 16

What is a carcinogen that can be found in well water and pressure treated wood?

Answer 16

arsenic

Question 17

This mineral was used to insulate in furnaces, heat ducts, wall cavities and electrical wiring.
What is it called?

Answer 17

asbestos

Question 18

What is called when asbestos can be broken into a powder with hand pressure?

Answer 18

friable

Question 19

What are the 3 abatement methods for asbestos?

Answer 19

Removal, enclosure, and encapsulation

Question 20

What is colorless, odorless gas that is a by-product of incomplete combustion form burning fuels such as wood, oil and natural gas?

Answer 20

carbon monoxide

Question 21

What can probably be found in every building and usually doesn’t cause a problem?

Answer 21

mold

• some molds are toxic and can trigger allergies.
• sellers need to disclose if there has ever been a mold problem in the property

Question 22

What is the abbreviation for Polychlorinated biphenyls?

Answer 22

PCB’s

-they were used as insulators for electrical transformers and were banned in 1979

Question 23

What can cause environmental issues when they leak?

Answer 23

underground storage tanks

Question 24

What is odorless colorless gas that occurs as the by-product of the decay of radium?

Answer 24

radon

Question 25

A ____________ site means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence of hazardous substance, pollutant or contaminant.

Answer 25

Brownfield

Question 26

Many lenders require the buyers of commercial property to perform the “ all appropriate inquiry” to assess environmental conditions on the property prior to its acquisition. What is this called?

Answer 26

Environmental Site Assessment

-aka Phase 1 - ESA, Phase 2-ESA and Phase 3-ESA

Question 27

What kind of insurance will protect the buyer against certain types of environmental liabilities?

Answer 27

Environmental liability insurance