VI. PROPERTY DISCLOSURES AND ENVIRONMENTAL Flashcards
This is found in paint and pipes, and soil. Use of this disclosure for all
properties built before 1978 is required by law.
Lead
The buyer has the right to:
- Have the property INSPECTED for lead within 10 DAYS of the effective date of the contract
- TERMINATE the contract due to the results of the lead inspection within 14 DAYS of the effective date by providing written notice to the seller.
The disclosure allows buyers to waive their right to a lead inspection. Older homes may have lead plumbing.
*Lead is hazardous when eaten or when inhaled in dust particles.
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.
When improperly constructed, can lead to groundwater contamination. Know locations, and disclose. Recommend water testing.
Landfills or waste disposal sites
(10% or more below the ground) that are old, rusty, or leaking, can cause groundwater contamination
Underground storage fuel tanks
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
Can be FRIABLE or easily crumbled. The resulting dust is extremely hazardous.
Asbestos
A seller’s only duty or obligation is to disclose the presence of asbestos.
An asbestos ABATEMENT plan outlines the control of asbestos in a property.
Methods of abatement include removal, encapsulation, and/or enclosure or sealing the area.
A naturally occurring colorless and odorless gas produced by the decay of radioactive
materials in rocks under the ground.
Radon
Radon enters homes through the foundations.
Radon mitigation plans can reduce radon levels through the installation of pipes and fans.
Radon is much more likely to exist in colder climates.
Newer homes with tighter construction can add to this type of growth, hence the addition of ventilating fans in wet areas this is called
Mold
A source of nutrients for mold is paper - it is basically pre-digested wood.
Therefore, paper-faced gypsum board (sheetrock) should never be used in shower or tub areas.
Cement board or mortar board in these areas will discourage mold growth. Humidity exacerbates mold growth.
Three types of Waste disposal sites
- 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
Three types of Water quality grades to explain both condition and use
White or clear water is tap water and potable (able to be used for drinking and food preparation.)
Greywater is gently used water from your bathroom sinks, showers, tubs, and washing machines
Blackwater denotes wastewater from toilets, which likely contains pathogens.
The link between land and water.
Wetlands
They are, therefore, often adjacent to or tributaries to navigable waters. The soil is often saturated.
The EPA regulates many wetlands.
They are sometimes a habitat for endangered species, including plants and animals. An area of wetlands can be called a mire, swamp, bog, peat, or marsh.
FEMA oversees
The National Flood Insurance Program (NFIP) in the United States.
Flood-prone areas throughout the country have been identified on maps prepared and researched by the Army Corps of Engineers.
Property located in the flood plain would be required to have flood insurance in addition to a homeowner’s policy if federally related financing was used to purchase the property.
A homeowner’s policy will protect the property from damage due to a variety of reasons, including but not limited to fire, storms, smoke, vandalism, and other perils.
These laws have particular relevancy to the Oil and Gas industry and can be used to demonstrate EPA involvement with Oil and Gas leases.
Clean Air and Water Acts
The Clean Air Act sets guidelines for emissions of hazardous air pollutants.
The Clean Water Act sets wastewater standards for industry.
The Clean Water Act applies to all navigable waters, including adjacent wetlands.
Both of these laws are administered by the EPA.
Charged with administering all environmental laws in the US.
EPA – The Environmental Protection Agency
In addition to the laws mentioned above, the EPA administers CERCLA – the Comprehensive Environmental Response, Compensation and Liability Act that was passed in 1980 and created the Superfund to help pay for the cleanup of hazardous spills and waste.
Only Federal and State Regulatory Agencies and Indian Tribes
have the authority to spend CERCLA funds. CERCLA sets guidelines for the cleanup of
hazardous waste and spills. Past and present property owners are liable for cleanup. Anyone
who contributed to the problem must share the cost of cleanup.
When the Superfund ran out of money, SARA – (Superfund Amendment and Reauthorization)
Act) was passed to increase the balance available for cleanups.
For COMMERCIAL property, or any property where there is reason to believe there might be hazardous materials on site, this should be recommended a Phase 1 ESA should be recommended
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.
For GOVERNMENT projects, this statement WILL be done
Environmental Impact Statement (EIS)
An EIS is done to determine the effect of a project on the community. The report includes a detailed description of the proposed project.
