Chapter 5

This set of flashcards covers key terms and definitions related to property disclosures and environmental issues.

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

A federal law that created a tax on the chemical and petroleum industries and established liability for environmental problems.

Potentially Responsible Parties (PRPs)

Individuals or entities that may be liable for the clean-up of environmental hazards, including current and former owners, operators, and transporters of hazardous substances.

Strict Liability

Type of liability under EPA guidelines where PRPs are liable for hazardous substance release regardless of foreseeability or legality at the time of disposal.

Joint and Several Liability

Legal concept that holds all parties contributing to pollution liable as if each alone polluted the site, with any one party responsible for all cleanup costs.

Superfund Amendments and Reauthorization Act (SARA)

Legislation that amended CERCLA to emphasize permanent remedies for hazardous waste and increase state-level involvement.

Property Disclosures

Fiduciary duty of agents to disclose environmental issues in real estate transactions.

Latent Defect

Defects that are concealed and cannot be discovered upon inspection, such as hidden cracks in a foundation.

Patent Defect

Defects that are openly visible and easily identifiable, like cracks in walls.

Lead-Based Paint – Federal Law

Regulation requiring sellers of properties built before 1978 to disclose lead-based paint hazards and give buyers time to inspect.

Caveat Emptor

Latin term meaning 'Let the buyer beware,' indicating that the buyer must assess the quality and suitability of a product or service before purchase.

Caveat Venditor

Latin term meaning 'Let the seller beware,' implying that sellers must provide accurate information about their products or services.

Arsenic

A carcinogenic mineral found in certain products and well water, regulated due to its toxic properties.

Asbestos

A carcinogenic mineral fiber used in construction for its heat resistance, found in insulation and building products.

Brownfields

Sites complicated by the presence of hazardous substances, affecting redevelopment or reuse.

Carbon Monoxide

A colorless, odorless gas resulting from incomplete combustion of fuels, regulated in property transfers.

Formaldehyde

A colorless gas used in building materials that can pose health risks in properties.

Mold

A fungus that can cause health issues and property damage, found in damp environments.

Polychlorinated Biphenyls (PCBs)

Man-made chemicals used in products, banned due to environmental and health hazards.

Radon

An odorless, colorless gas from radium decay that can cause lung cancer, requiring testing in homes.

Underground Storage Tanks

Tanks that store hazardous substances, subject to regulatory disposal practices to prevent groundwater contamination.