Environmental Considerations in Real Estate Sales Text Size:

Whether buying or selling real estate, there are several environmental issues that one needs to be aware of. Environmental problems with land or buildings can greatly reduce their value. Also, if contaminated property is purchased, the buyer may be liable for clean-up costs even though he or she did not cause or contribute to the problem.

Before making an offer on real estate, a potential buyer should ask the seller and any real estate professionals involved whether they are aware of environmental problems on the property. A seller may not be under any obligation to volunteer information about environmental problems but, if asked, he or she is required to answer truthfully. If the seller does not answer truthfully and a problem is found, he or she can be charged with fraud. If the answer is yes, the buyer should seek further information. Even if the answer is no, there may still be problems that the seller doesn't happen to know about, so additional precautions should be taken.

Possible Environmental Concerns

Some possible environmental issues that may arise in the buying and selling process are:

• Water quality
• Lead paint
• Radon
• Asbestos
• Toxic mold
• Soil and groundwater contamination

Water Quality

Water quality is a common concern and a buyer may want to have the water source tested before purchasing real estate. Typically, a basic water quality test will check pH, water hardness, the presence of fluoride, sodium, iron and manganese, plus bacteria such as E-coli. Also, water may be tested for the presence of lead or arsenic.

Lead Paint

Lead is a metallic element found worldwide in rocks and soils. Lead paint may be present in homes built before 1978. When ingested, lead accumulates in the blood, bones, and soft tissue of the body. High concentrations of lead in the body can cause death or permanent damage to the central nervous system, the brain, the kidneys, and red blood cells. Generally, if the lead-based paint is in good condition, not cracking or peeling, it is not a hazard. If the condition is hazardous, the paint will either need to be removed or sealed in such a manner as to eliminate the hazard.

Radon

Radon is a colorless, odorless, tasteless gas that occurs worldwide in the environment as a byproduct of the natural decay of uranium present in the earth. Radon is present in varying quantities in the atmosphere and in soils around the world. Radon that is present in surrounding soil or in well water can be a source of radon in a home. Most homes have some radon present, and tests can determine if the level present is higher than what is considered safe. A radon reduction or mitigation system will need to be installed if the level is too high.

Asbestos

Asbestos is a fibrous mineral found in rocks and soil throughout the world, which has been identified as a carcinogen. Asbestos has been used in architectural and construction applications because it is strong, durable, fire retardant, and an efficient insulator. Home health risks arise when age, accidental damage, or normal cleaning, construction or remodeling activities cause materials that contain asbestos to crumble, flake or deteriorate. When this happens, minute asbestos fibers are released into the air and can be inhaled through the nose and mouth.

Asbestos may have been used in the insulation or other building materials of homes built more than 30 years ago. If the asbestos is releasing fibers into the air, it needs to be removed or repaired by a professional contractor specializing in asbestos cleanup.

Toxic Mold

Molds can cause health problems as well as structural damage. Molds are fungi that reproduce by releasing tiny spores into the air. Spores that land on moist objects may begin to grow. Toxic mold is a type of mold that produces hazardous byproducts.

Soil and Groundwater Contamination

A common problem arises when soil or groundwater is contaminated by such things as pesticides, gasoline or manure. Storing or mixing of chemicals or rinsing tanks near a well head is one of the most common causes of groundwater contamination. Leaking underground storage tanks and pipes are another major source of groundwater contamination.

Before You Buy a Home

Most buyers will find that there are no environmental concerns with the property that they want to purchase. If some questions are raised, have an environmental inspection performed. An environmental inspection offers some assurance against a surprise discovery that the property is worth far less than expected and it may protect against liability for cleanup costs under the federal environmental statutes. It is also a good idea to insert a contingency into the contract that will allow you to back out of the deal if environmental hazards are detected and cannot be thoroughly eliminated.

Items that should be tested or checked:

• Test the water quality
• Test for lead paint if the structure was built before 1978
• Test for radon gas
• Check for asbestos if the structure was built more than 30 years ago
• Test for toxic mold
• Check for soil and groundwater contamination

Lenders Concerns

Because of the potential impact of environmental problems on land values and liability for cleanup, real estate lenders are paying close attention to environmental concerns when making mortgage loans. Even if you are willing to accept the risks that may occur if you fail to make reasonable environmental inquiries, you may find that your lender is insisting upon such measures at your expense.

Before You Sell a Home

Don't offer property for sale or list it until the following have been tested or repaired:

• Make sure the water quality is at an acceptable level
• Remove or seal any lead paint
• Eliminate any radon gas
• Remove any asbestos
• Remove any mold and repair any damage cause by the mold
• Clean up any soil and groundwater contamination

Environmental Characteristics of Neighborhood

The U.S. Environmental Protection Agency has a tool on their Web site that allows visitors to search a community by ZIP code for environmental facts about the area. Scorecard is another site that has information about an area's pollution statistics. You can get an in-depth pollution report for a county that covers air, water, chemicals and more.

Related Resources on Lawyers.com^sm