Chapter 6: Property Disclosures and Environmental Issues

Question 1

Use of the lead-based paint disclosure for all

properties built before what year is required by law?

Answer 1

1978

Question 2

Lead

Answer 2

There is no duty to remediate lead. A seller must keep a record/ copy
of the disclosure for at least three years from the sale date.

Question 3

USTs

Answer 3

Underground storage fuel tanks that are old, rusty, or leaking, can cause groundwater contamination. Recommend water testing.

Broker candidates should know: the following tanks are exempt from the federal UST rules:
• Farm and residential tanks of 1,100 gallons or less capacity holding motor fuel used for noncommercial purposes
• Tanks storing heating oil used on the premises where it is stored
• Tanks on or above the floor of underground areas, such as basements or tunnels
• Septic tanks and systems for collecting storm water and wastewater

Question 4

What is the seller’s duty or obligation when asbestos is present?

Answer 4

A seller’s only duty or obligation is to disclose the presence of asbestos.

Question 5

Greenfields, Greyfields, Brownfields

Answer 5

• Greenfields - land that has never previously been developed
• Greyfields - land able to be redeveloped (empty Walmart)
• Brownfields - land known to be hazardous - most likely a hazardous industrial site

Question 6

Phase 1 ESA

Answer 6

For commercial property, or any property where there is reason to believe there might be hazardous
materials on site, a Phase 1 ESA should be recommended. This is an ENVIRONMENTAL SITE ASSESSMENT
– a report prepared for a purchaser or owner identifying potential or existing environmental contamination liabilities.