Unit 3: Environmental Issues in Real Estate

Question 1

a natural element found in water, soil, air, and has been linked to several types of cancer. Until 2003, chromated copper ___ (CCA) was used in pressurized wood to prevent insect infestation and dry rot where boards made contact with the earth. CCA could leach into the soil and were released when the boards were cut or sanded. Communities located near smelters or glass factories or farms that used arsenic pesticides may be exposed to _____

Answer 1

Arsenic

Question 2

is a fire-resistant mineral that was once used extensively as insulation and to strengthen other materials. A component of more than 3,000 types of building materials, ___ was found in most construction, including residential, until 1978, when its use was banned. The Environmental Protection Agency (EPA) estimates that, even today, about 20% of the nation’s commercial and public buildings have ___-containing materials (ACMs).

Answer 2

Asbestos

Question 3

was used to cover pipes, ducts, and heating and hot water units. Its fire-resistant properties made it a popular material for use in floor tile, exterior siding, roofing products, linoleum flooring materials, joint compounds, wallboard material, backing, and mastics. Though some ACMs are easy to identify (e.g., insulation around heating and water pipes), identifying asbestos may be more difficult when it is behind walls or under floors

Answer 3

Asbestos

Question 4

is highly friable, meaning that as it ages, ___ fibers easily break down into tiny filaments. This makes ___ especially harmful when it is disturbed or exposed and becomes airborne, as often occurs during renovation or remodeling. Those who have inhaled ___ fibers often develop serious and deadly respiratory diseases decades later. While federal regulations establish guidelines for owners of public and commercial buildings to test for ___-containing materials, there are no guidelines regarding the presence of ___ in residential properties.

Answer 4

Asbestos

Question 5

___ or the sealing off of disintegrating asbestos, is an alternate method of asbestos control that may be preferable to removal in certain circumstances. However, an owner must periodically monitor the condition of the ___ asbestos to make sure it is not disintegrating.

Answer 5

Encapsulation

Question 6

CO) is a colorless, odorless gas that occurs as a by-product of burning fuels such as wood, oil, and natural gas, owing to incomplete combustion. The body quickly absorbs ___ where it inhibits the blood’s ability to transport oxygen, resulting in dizziness and nausea. As CO concentrations increase, the symptoms become more severe, and death may occur within a short time. More than 300 deaths from CO poisoning occur each year, with thousands of others requiring hospital emergency room care.

Answer 6

Carbon monoxide

Question 7

can be found almost anywhere and can grow on almost any organic substance, so long as moisture, oxygen, and an organic food source are present. Moisture feeds ___ growth. If a moisture problem is not discovered or addressed, mold growth can gradually destroy what it is growing on. In addition, some ___ can cause serious health problems. They can trigger allergic reactions and asthma attacks. Some ___ are known to produce potent toxins and/or irritants.

Answer 7

Mold

Question 8

Groundwater, water that exists under the earth’s surface within the tiny spaces or crevices in geological formations, forms the ____ _____ the natural level at which the ground is saturated. The ___ ___ may be several hundred feet underground or near the surface. When the earth’s natural filtering systems are inadequate to ensure the availability of pure water, any contamination of underground water threatens the supply of pure, clean water for private wells or public water systems. Numerous state and federal laws have been enacted to preserve and protect the water supply.

Answer 8

Water table

Question 9

Real estate licensees should educate their sellers about full and honest disclosure concerning the property’s water supply and septic systems. Buyers should be educated about potential groundwater contamination sources both on and off a property. Licensees should always recommend testing the water supply when it is not part of a municipal source.
In Pennsylvania, ___ in the Seller Property Disclosure Statement requires disclosure of the source of drinking water.

Answer 9

Section 35.335a.

Question 10

___ is the common term used for hydraulic fracturing used to economically extract vast amounts of shale gas trapped in shale, a fine-grained sedimentary rock formed thousands of years ago by mud, silt, clay, and organic matter.

Answer 10

Fracking

Question 11

_____. centrally located under much of Pennsylvania, is one of the largest natural gas fields in the United States. With the use of horizontal drilling, vast amounts of water containing additives that make the fracturing process more effective are pumped thousands of feet below ground to deliver oil and gas to the surface.

Answer 11

The Marcellus Shale

Question 12

___are commonly found on sites where petroleum products are used or where gas stations and auto repair shops are or were located. They also may be found in a number of other commercial and industrial establishments, including printing and chemical plants, wood treatment plants, paper mills, paint manufacturers, dry cleaners, food processing plants, and chemical storage or process waste plants. Military bases and airports are also common sites for ___. In residential areas, tanks are used to store heating oil.

Answer 12

Underground storage tanks (USTs)

Question 13

A ___ is an enormous hole, either excavated for the purpose of waste disposal or leftover from surface mining operations. The hole is lined with clay or a synthetic liner to prevent leakage of waste material into the water supply. A system of underground drainage pipes permits the monitoring of leaks and leaching. Waste is laid on the liner at the bottom of the excavation, and a layer of topsoil is then compacted onto the waste. The layering procedure is repeated until the ___ is full, with the layers mounded up sometimes as high as several hundred feet.

Answer 13

landfill

Question 14

___ is the process of laying two to four feet of soil over the top of the site and then planting grass on it to enhance the landfill’s aesthetic value and prevent erosion. A ventilation pipe runs from the landfill’s base through the ___ to vent off accumulated natural gases created by the decomposing waste. Test wells around landfill operations are installed to constantly monitor the groundwater in the surrounding area, and soil analyses test for contamination.

Answer 14

capping

Question 15

___ are defunct, derelict, or abandoned commercial or industrial sites, many of which are suspected to contain toxic wastes. According to the U.S. General Accounting Office, several hundred thousand ___ plague communities as eyesores and potentially dangerous and hazardous properties, often contributing to the decline of urban property values.

Answer 15

brownfields

Question 16

provides funds to assess and clean up brownfields, clarifies liability protections, and provides tax incentives toward enhancing state and tribal response programs. The law is also important for property owners and developers because it shields innocent developers from liability for toxic waste that existed at a site prior to the purchase of property. In effect, a property owner who neither caused nor contributed to the contamination is not liable for the cleanup.

Answer 16

Small Business Liability Relief and Brownfields Revitalization Act (or Brownfields Law)

Question 17

provides for the rehabilitation or recycling of brownfields. The UECA requires an environmental covenant that indicates the cleanup or containment of hazardous materials (to levels of safe usage) and perhaps restrict land use (e.g., prohibiting school buildings or parks on the land). The Department of Environmental Protection (DEP) is responsible for implementing the UECA, which includes setting up a Pennsylvania Environmental Covenant Registry that lists all properties with attached covenants.

Answer 17

The Uniform Environmental Covenants Act (UECA)

Question 18

___ was used as a pigment and drying agent in alkyd oil-based paint. Although ___-based paint may be found on any interior or exterior surface, it is particularly common on doors, window frames, and other woodwork. The federal government estimates that ___ is present in about 75% of all the private housing built before 1978 or in as many as 57 million homes, ranging from low-income apartments to million-dollar mansions.

Answer 18

lead

Question 19

will provide the lead content of every different type of painted surface in a home. This inspection will not indicate whether the paint is a hazard or how the homeowner should deal with it.

Answer 19

Paint inspection.

Question 20

notes the presence of any sources of serious lead exposure, such as peeling paint or lead dust. It also describes what actions can be taken to address the hazards.

Answer 20

Risk assessment

Question 21

is a naturally occurring, colorless, odorless, tasteless, radioactive gas produced by the decay of other radioactive substances. ___ is measured in picocuries (a unit of radiation) contained in a liter of air (i.e., pCi/L). ___ is found in every state and territory with ___ levels in the outdoor air averaging 0.4 pCi/L. Fans and thermal “stack effects” (i.e., rising hot air draws cooler air in from the ground through cracks in the basement and foundation walls) pulls radon into buildings.

Answer 21

radon

Question 22

a colorless chemical with a strong, pronounced odor, is used widely in the manufacture of building materials and many household products because of its preservative characteristics. Often emitted as a gas, _____ is one of the most common and problematic volatile organic compounds (VOCs) and is one of the few indoor air pollutants that can be measured. ____ was listed as a hazardous air pollutant in the Clean Air Act Amendments of 1990.

Answer 22

Formaldehyde

Question 23

___, once popular, then banned, and now legal again, is rarely used. When incorrectly mixed, UFFI never properly cures, resulting in strong emissions shortly after installation. Studies have shown that formaldehyde emissions generally decrease over time, so homes where UFFI was installed many years ago are unlikely to have high levels of formaldehyde now unless the insulation is exposed to extreme heat or moisture. Still, licensees should check their state’s property disclosure form to see if UFFI must be disclosed. Appraisers should also be aware of the presence of formaldehyde.

Answer 23

Urea-formaldehyde foam insulation (UFFI)

Question 24

In Pennsylvania____ of the Seller Property Disclosure Statement asks whether the sellers are aware of any urea-formaldehyde form (UFFI) in their property.

Answer 24

Section 35.335a

Question 25

The movement of electrical currents by any electrical appliance, such as digital clocks, blow dryers, televisions, and computers, generates ____

The EMFs produced by high-voltage lines, as well as by secondary distribution lines and transformers, have been suspected of causing cancer, hormonal changes, and behavioral abnormalities. There is considerable controversy (and much conflicting evidence) about whether EMFs pose a health hazard. Buyers who are aware of the controversy may, however, be unwilling to purchase property near power lines or transformers. Licensees are cautioned to remain neutral, letting buyers draw their own conclusions.

Answer 25

Electromagnetic Fields

Question 26

consist of more than 200 organic chemical compounds that are not found naturally in nature. These flame-resistant chemicals were often used in electrical equipment (such as transformers), electrical motors in refrigerators, caulking compounds, and hydraulic oil in older equipment. The EPA has classified PCBs as reasonably carcinogenic, and they have been implicated in lower fertility and shortened life spans. Although the commercial distribution of PCBs was banned in 1979, PCBs remain in the environment because burning them at more than 2,400 degrees in a closed environment is the only known way to destroy them

Answer 26

Polychlorinated Biphenyls

Question 27

created in 1970, works with other federal agencies to oversee and implement many of the laws passed to protect and improve the environment. Most federal laws encourage state and local governments to enact their own legislation.

Answer 27

The Environmental Protection Agency (EPA)

Question 28

Created in 1980, ___established a fund of $1.6 billion, called the Superfund, to clean up uncontrolled hazardous waste sites and to respond to spills. The act created a process for identifying potential responsible parties and ordering them to take responsibility for the cleanup action. CERCLA is administered and enforced by the EPA.

Answer 28

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

Question 29

In 1986, the-____ reauthorized CERCLA, increased the Superfund to $8.5 billion, provided funds for studying the use of new technologies, and required the EPA to assess the risk to human environmental health at every site on the Superfund’s list. It also required more citizen and state involvement in each phase of Superfund programs, and authorized the Emergency Planning and Community Right-to-Know Act, as well as required the EPA to revise the Hazard Ranking System (HRS).

Answer 29

Superfund Amendments and Reauthorization Act (SARA)

Question 30

_____ created an innocent landowner immunity status. It recognized that, in certain cases, a landowner in the chain of ownership was completely innocent of all wrongdoing and therefore should not be held liable. The innocent landowner immunity clause established the criteria by which to judge whether a person or business could be exempted from liability. The criteria included the following:
• The pollution was caused by a third party.
• The property was acquired after the fact.
• The landowner had no actual or constructive knowledge of the damage.
• Due care was exercised when the property was purchased (the landowner made a reasonable search, called an environmental or Phase I site assessment) to determine that no damage to the property existed.
• Reasonable precautions were taken in the exercise of ownership rights.

Answer 30

SARA

Question 31

was passed to protect public health by regulating the nation’s public drinking water supply. The SDWA authorizes the EPA to set national health-based standards for drinking water. Later amendments strengthened the law by increasing source water protection, operator training, funding for water system improvements, and public information. For example, the EPA now requires that water suppliers report any health risk situation within 24 hours, instead of the 72 hours mandated in the past. Wells that serve fewer than 25 individuals are exempt from SDWA regulations.

Answer 31

The Safe Drinking Water Act (SDWA)

Question 32

) intends to regulate pollutants discharged into waterways. The law governs the discharge of oil and hazardous substances into the ground. The Rivers and Harbors Act, passed in 1899, still requires permits for building a wharf, pier, or other structure in any water outside established harbor lines. The Coastal Zone Management Act, which is primarily implemented by the states, addresses coastal environmental problems.

Answer 32

The Clean Water Act (CWA)

Question 33

requires that Pennsylvania municipalities develop comprehensive plans to resolve existing sewage disposal problems and to prevent future problems. Licensees should be aware of Section 7, which requires notice to prospective buyers that if a property is not serviced by a public sewage system and no community sewage system is available, a permit for an individual system must be obtained. The Seller Property Disclosure Statement requires that sellers indicate the type of sewage system that is on the property.

Answer 33

The Pennsylvania Sewage Facilities Act in 1994

Question 34

defines the responsibilities of the EPA to protect human health and safety by regulating air emissions from stationary and mobile sources. The EPA’s final regulations significantly affect property owners and businesses as they apply to appliances used for residential or commercial air-conditioning, cold storage, and refrigeration, and the refrigeration chemicals that are used in these appliances.

Answer 34

The federal Clean Air Act

Question 35

) is often performed on a property to show that due care was exercised in determining whether any environmental impairments exist. The assessment can help prevent parties from becoming involved in contaminated property and work as a defense to liability. It is often requested by a lending institution, developer, or a potential buyer. The assessment is commonly performed in phases, such as Phase 1 or Phase 2.
A Phase 1 Environmental Report is requested first to determine whether any potential environmental problems exist at or near the subject property that may cause impairment. There are no federal regulations that define what an environmental assessment must include.

Answer 35

An environmental site assessment (ESA)

Question 36

These statements detail the impact the project will have on the environment. They can include information about air quality, noise, public health and safety, energy consumption, population density, wildlife, vegetation, and the need for sewer and water facilities. Increasingly, these statements are also being required for private development.

Answer 36

A federally funded project requires that an environmental impact statement (EIS) be performed.

Question 37

previously used in refrigerators, aerosol sprays, paints, and foam appliances, are no longer manufactured worldwide, for the most part, since 1996. They have been replaced with more environmentally friendly substitutes.

Answer 37

Chlorofluorocarbons (CFCs),