Unit 21: Environmental Issues and Real Estate Transactions

Environmental Issues and Real Estate Transactions

Asbestos

  • Definition: Asbestos is a fire-resistant mineral that was used extensively for insulation and to strengthen various materials.

  • Health Risks:

    • Asbestos can create airborne contaminants that may lead to respiratory diseases.

    • It is highly friable, meaning:

    • As it ages, asbestos fibers break down easily into tiny, light filaments that remain airborne for extended periods, especially when disturbed during renovations or remodeling.

    • Inhalation of asbestos fibers is linked to serious respiratory diseases that may develop decades later.

Encapsulation

  • Definition: Encapsulation refers to the sealing off of disintegrating asbestos.

  • Method of Control:

    • This method may be preferable to removal in certain situations.

    • The condition of the encapsulated asbestos must be monitored periodically to ensure it is not deteriorating.

Lead-Based Paint

  • Definition: Lead-based paint contains lead from paint or other sources.

  • Health Risks:

    • Exposure can cause damage to the brain, nervous system, kidneys, and blood.

    • Children younger than six years are particularly vulnerable to lead poisoning.

  • Regulations:

    • In 1996, the EPA and HUD established regulations under the Lead-Based Paint Hazard Reduction Act, which includes:

    • A requirement for disclosure of any known lead-based paint hazards to potential buyers or renters.

    • The federal law does not mandate testing for lead-based paint.

    • Landlords must disclose known information on lead-based paint before leases take effect.

    • Sellers must disclose known information prior to the execution of a contract for sale.

    • Buyers have up to ten days for risk assessment or inspection for lead-based paint hazards.

Radon

  • Definition: Radon is a naturally occurring radioactive gas that is colorless, odorless, and tasteless, produced by the decay of other radioactive substances.

  • Measurement: Radon levels are measured in picocuries per liter of air.

  • Health Risks:

    • The risk of developing lung cancer from radon exposure depends on both the extent and duration of exposure.

    • Classified as a Class A known human carcinogen.

Carbon Monoxide

  • Definition: Carbon monoxide is a gas that is colorless, odorless, and tasteless.

  • Source: It occurs as a byproduct of burning fuels (wood, oil, natural gas) due to incomplete combustion.

Mold

  • Definition: Mold is a type of fungus that can grow almost anywhere on organic substances.

  • Conditions for Growth:

    • Requires moisture, oxygen, and an organic food source.

Underground Storage Tanks

  • Definition: Underground storage tanks (USTs) are commonly found in locations where petroleum products are utilized, such as gas stations and auto repair shops.

  • Regulations:

    • Regulations apply to tanks that:

    • Store hazardous substances or liquid petroleum products.

    • Contain at least 10% of their volume underground.

CERCLA

  • Definition: CERCLA stands for Comprehensive Environmental Response, Compensation, and Liability Act.

  • Enactment: Created in 1980.

  • Purpose:

    • Establishes a process for identifying potential responsible parties for environmental contamination and mandating their responsibility for cleanup actions.

  • Administration: The act is administered and enforced by the EPA.

  • Information Access: Superfund information is available on the EPA's website.