Environmental Considerations Flashcards
Hazard
Object
material
condition
that has the potential to cause harm to the health and safety of humans or to the environment.
Hazard becomes a risk when an external condition acts upon it
ESA Phases
Three
Phase 1 ESA
Inspect determines if there is a reason for an environmental hazard to exist
Review of existing information to determine if soil or ground water contamination exists
Historical and current records review
Site visit and inspection
Preparation of a written report
Phase 2 ESA
Is there is a reason to suspect contamination, the site and suspected contaminants are tested
Environmental Sample analysis
Further research
Evaluate results
Phase 3 ESA
Is contamination is found, remediation is implemented
Select remedial action
Implement remedial action
What does a home inspector inspect
Heating
Plumbing
Electrical
Insulation
Structure
Building Envelope
Interior
Drainage
Patent defects
Can be discovered through a reasonable inspect using ordinary measures
Inoperable doorbell
Broken bay window
Damaged baseboard
Broken toilet flush
Latent defents
Cannot be detected through reasonable inspection
A leak in the basement
A crack in the wall behind a wall mounted TV
Water damage behind pipe under a sink
REIX claim process
- Inform your broker
- Report the incident to REIX
- Complete a liability insurance reporting form (LIRF)
- Respond to requests by REIX promptly
Test: What visible clues could indicate potential hazards on a property
Suspicious fill or mounds indicating the possibility of dumping
Solid waste in loose piles, stored in barrels or buried
Soil contamination evidenced by spills or oily residue on the ground
Test: What are the reasons an environmental assessment might be required
To meet the requirements of a lending institute
To satisfy the buyer or seller in a property transaction
To establish the parameters for a risk management plan to mitigate the environmental hazards
Test: Actions taken in a Phase 1 environmental site assessment
A historical and current records review
Site visit and inspection
Preparation of a written report
Test: Signs that a property is being used as a meth lab
Extensive security
Metal drums and boxes with labels removed or sprayed over
Makeshift ventilation piping and venting
Errors and Omissions Insurance
Covers damages related to the negligence of real estate industry members specific to activities involving a trade in real estate
Test: Practices for a licensee to mitigate risk?
Discuss agency and ensure your client understands your role
Always use the correct forms for a transaction
Do not take on responsibilities that you are not knowledgeable in or licensed to complete
Test: Material latent defect
Cannot be identified through a reasonable inspection of the property
Test: REIX deductible if a claim has already been paid in a three year period
$7,000
Phase 2 ESA
Physical testing is done on site of to confirm existence of contaminants
Test: Which type of insurance should real estate professional investigate before conducting any real estate business
Auto insurance
General business liability insurance
Errors and Omissions insurance (provided by REIX)
Test: What activities are exempt from REIX coverage
Title registration of conveyancing
Activities not considered to be trading in real estate
Dishonest, fraudulent or criminal activities
Test: Your clients must maintain insurance on the property they are selling until at least the completion date indicated on the purchase contract
No
