Broker. Environmental Concerns Affecting Real Estate Transactions. Chapter 17. Copyright Gold Coast Schools 1
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1 Broker Chapter 17 Environmental Concerns Affecting Real Estate Transactions Copyright Gold Coast Schools 1
2 Learning Objectives Define potentially responsible person List the criteria for the innocent landowner defense Understand the National Priorities List's purpose and use Define environmental due diligence Describe the information contained in a Phase I environmental assessment Describe the disclosure requirements for radon gas Copyright Gold Coast Schools 2
3 Learning Objectives Describe the disclosure requirements for lead-based paint List the types of properties exempted from the lead-based paint requirements Copyright Gold Coast Schools 3
4 Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Potentially responsible persons (PRP) liable for cleanup include Present owners and operators of a contaminated site Persons who owned or operated a site at the time hazardous substances were located at the site Generators of hazardous substances found at a site Persons who arranged to transport hazardous substances to a site Copyright Gold Coast Schools 4
5 Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Liability under CERCLA Strict The government need not show a PRP s fault Only that the persons fall within the definition of a PRP Joint and several One or more of a group of PRP s can be sued Those sued are responsible for the total response costs Copyright Gold Coast Schools 5
6 Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Innocent landowner defense Did not know that the property was contaminated at the time of purchase Reacted responsibly - once the contamination was discovered Made reasonable inquiries into the property's past uses before purchase to determine whether the property was contaminated Copyright Gold Coast Schools 6
7 National Priorities List Helps the public with information about contaminated real property Published list of hazardous waste sites eligible federal funding to pay for clean-up Site identification guides the EPA to: Determine which sites warrant further investigation Identify what CERCLA financed actions are correct Notify the public of sites the EPA has marked for further investigation Notify potential responsible parties that EPA may initiate remedial action Copyright Gold Coast Schools 7
8 Environmental Due Diligence Environmental site assessment-study designed to assess the likelihood that hazardous substances may be present Phase I an assessment to discover potential contamination Phase II field testing Phase III remediation Phase IV prevention Copyright Gold Coast Schools 8
9 Asbestos A mineral fiber that was used commonly before 1979 Asbestos fibers become dangerous when disturbed Do not disturb if in good condition If asbestos is going to be removed a specialist should be consulted Copyright Gold Coast Schools 9
10 Radon Decaying uranium in the soil produces radon gas Second leading cause of lung cancer Florida requires mandatory radon disclosure at the time or before a person enters into a contract for sale and purchase or a rental agreement Testing is not required Copyright Gold Coast Schools 10
11 Lead-Based Paint Required disclosure of known information on lead-based paint before the sale or lease of most housing built before 1978 Provide purchaser or lessee with a lead hazard information pamphlet Disclose to the purchaser or lessee the presence of any known lead-based paint or lead-based paint hazards Copyright Gold Coast Schools 11
12 Lead Paint Disclosure Requirements Give EPA pamphlet entitled: Protect Your Family from Lead in Your Home Disclose known lead-based hazards Allow homebuyers ten days to conduct a risk assessment or an inspection for the presence of lead-based paint hazards at their expense Include the lead warning statement and acknowledgement Include the same information in lease contracts Lessees do not have the right to inspect for leadbased paint Copyright Gold Coast Schools 12
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