Unit 21: Environmental Issues and the Real Estate Transaction

Question 1

Disclosure laws in Colorado dictate that a seller must …

Answer 1

disclose everything about their property to their current knowledge.

Question 2

What is an Asbestos?

Answer 2

Mineral that was used in insulation since it was resistant to fire and was heat resistant

Used to cover pipes, ducts, heating, hot water units, floor tiles, exterior siding, roofing products, linoleum flooring materials, joint compounds, wallboard materials, backing and mastics.

Inhaling asbestos fibers can cause many respiratory problems and cancer

Is not a hazard itself, but may become hazardous if distubred or exposed.

Question 3

Lead Based Paint:

Answer 3

It is commonly found in homes built prior to 1978.

Elevated lead levels are associated with brain damage, and damage to the kidneys, nervous system and red blood cells.

Lead dust and peeling paint may be ingested or inhaled by small children or adults or by drinking water from lead pipes

Lead was used as a drying agent and pigment in interior and exterior paint as well as plumbing pipe and solder.

Question 4

The Lead Based Paint Hazard Reduction Act of 1992 requires that:

Answer 4

Sellers and Landlords must disclose known information about lead hazards PRIOR to contract of sale or the effective date of a lease

Sales contracts MUST include a fully executed Lead Paint Disclosure and a copy of the “Protect Your Family from Lead in Your Home” Booklet

Buyers have up to 10 days to conduct a risk assessment or an inspection for the presence of lead-based paint hazards

Question 5

Radon:

Answer 5

Radon is a radioactive gas produced by the natural decay of other radioactive substances.

Radon is found in every state but is prominent in Colorado

If radon dissipates into the atmosphere, it does not pose a heath hazard but if it is trapped in buildings it increasing the risk of lung cancer.

The current threshold for a radon level in a property is 4.0 picocuries/liter of air per EPA guidelines

Home inspectors can conduct a radon test as part of the home inspection process.

Question 6

Formaldehyde:

Answer 6

Formaldehyde is a colorless chemical used in the manufacture of building materials and household products

Adhesives used in the production process of particle board and other pressed wood products such as MDF, hardwood plywood paneling, carpeting tiles and ceiling tiles

Urea Formaldehyde Insulation was used during the 1970s

Exposure causes respiratory problems, skin and eye irritations and may cause cancer in humans

Question 7

Carbon Monoxide:

Answer 7

Carbon monoxide is colorless, odorless gas that is the by product of the burning of fuel oil and natural gas due to incomplete combustion

Colorado requires that all homes sold and rental units have carbon monoxide detectors

Gas, forced air furnaces, gas stoves, gas water heaters, fireplaces and operating a vehicle in a garage are common sources of carbon monoxide poisoning.

CO gas combines easier with red blood cells reducing the amount of oxygen being carried to the brain and the rest of the body

Question 8

Mold:

Answer 8

Despite the drier climate in Colorado, Colorado does indeed have mold.

Mold will grow anywhere there is moisture, oxygen and an organic food source present

There are many types of mold – some of which have serious health risks

Mold tests can be conducted to determine the level and type of mold present

If mold is found, proper mitigation is important as well as to discover and correct the source of the mold to prevent its return

Question 9

Electromagnetic Fields:

Answer 9

Electromagnetic fields (EMFs) are generated by the movement of electrical current

The major source of concern surrounding EMFs involves proximity to high tension power lines

While there is no definitive scientific conclusions, EMFs are suspected as being a source of cancers, hormonal changes, and behavioral disorders.

Question 10

Underground Storage Tanks:

Answer 10

According to EPA estimates 40% of all underground storage tanks are leaking

Underground storage tanks are used to store heating oil for some residential properties – especially in rural areas or areas that are not serviced by natural gas companies

Underground storage tanks are also used for gasoline stations, and other companies that use chemicals

Owners of tanks are required to register them and follow strict requirements to prevent contamination

Tanks that store heating oil used on the premises and septic tanks are exempt