Section 18: Environmental Issues Affecting Real Estate Transactions Flashcards
Due Dilligence with commercial buyers
Sellers of commercial property do not have to disclose facts that affect the value of the property. Realtor does have to disclose even if commercial.
Four Phases of Environmental Assessment
Phase I - Investigation - Property history reviewed and physical features examined for risks of environmental hazard.
Phase 2 - Testing - Conducted only if necessary.
Phase 3 - Cleanup - Gov’t agencies may step in on this stage.
Phase 4 - Management - Monitored and potential issues are addressed.
Environmental Impact Statements
Helps evaluate the impact a new development or construction project will have on the existing environemnt.
Describes ways to mitigate any negative effects.
Salesperson disclosure for environmental projects
Your responsibility as a real estate professional includes disclosure of all known environmental (or property condition) defects, regardless of the type of property.
Construction projects that are funded by a federal agency will likely require an ______.
Environmental Impact Statement
What’s an environmental impact statement?
A written statement used to consider ways to minimize a project’s negative impact on the environment.
It describes and analyzes the effects that a proposed action may have on the environment and identifies any significant effects.
Who can design a septic system?
Septic systems must be designed by an engineer or architect, who also certifies that the system won’t have any negative impact on the environment.
Septic systems for homes need to have an “as-built” drawing filed with the what entity?
The local Health Department
George is interested in buying an old Victorian home located in an historic downtown area. The home uses natural gas. George asks if there is an underground storage tank. Why is this a concern?
It may not have been decommissioned properly
How is the environmental impact of incinerators less harmful than the environmental impact of landfills?
Landfills take up a lot more space due to the volume of the waste.
What must a licensee disclose to buyers about incinerators?
Both the air and water quality can be affected by incinerators.
In addition to providing a disclosure of any lead-based paint hazards in homes built before 1978, what must a seller’s agent provide to prospective buyers?
EPA lead safety pamphlet
According to the EPA, at what level does radon become a health concern requiring mitigation?
4.0 picocuries per liter of air
Certain homes and other buildings are designated as “target” dwellings by the EPA. What does this mean?
“Target” dwellings have specific requirements for contractors performing lead abatement or remodeling.
In addition to its potential health hazards, what is a common consequence of a brownfield’s presence in a community?
The presence of a brownfield, and the belief that it is contaminated and a health and environmental hazard, has been known to negatively impact property values.
If a property needs environmental cleanup and the owners will not do it…
If property owners refuse to pay cleanup costs as billed by the EPA, the EPA can seek damages of up to three times the original costs.
What is an abandoned or unused commercial or industrial site that contains suspected contaminants?
A brownfield is an abandoned or otherwise unused commercial or industrial site with suspected contaminants.
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) created WHAT to clean up hazardous waste sites and respond to spills that may endanger public health or the environment.
Superfund
