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 Real Estate Notebook

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- ENVIRONMENTAL HAZARDS:
  - LICENSEE is LIABLE if he FAILS to DISCLOSE DEFECTS that could affect
      HEALTH and SAFETY of OCCUPANTS
  - COMMON ENVIRONMENTAL HAZARDS are...
    - RADON:
      - a TOXIC GAS
      - enters through openings around PLUMBING or CRACKS in FOUNDATION
      - comes from the GROUND so NOT an issue for HIGH-RISE upper floors
      - but CAN BE a PROBLEM for HOMES and SCHOOLS
      - damages LUNGS
      - to FIND OUT if a PROPERTY is AFFECTED, you can...
        - contact LOCAL, STATE, or FEDERAL ENVIRONMENTAL AGENCY
        - ask NEIGHBORS
        - ask SELLER to have property TESTED
      - NOT uncommon for BUYER to REQUEST a RADON TEST BEFORE OFFER
      - any RADON test SELLER DOES MUST BE DISCLOSED
      - both TESTS and REMEDIES are EASY and CHEAP
      - EPA has free PUBLICATIONS
    - FORMALDEHYDE GAS:
      - EMITTED from...
        - FURNITURE, DRAPERIES, CARPET, PLYWOOD
        - UREA-FORMALDEHYDE FOAM INSULATION - found in OLDER HOMES
      - may cause EYE, NOSE, THROAT IRRITATION and CANCER
      - in REAL WORLD, usually NOT a problem
      - if you're worried about it...
        - SELLER can have HOME TESTED
        - consult HEALTH AUTHORITY
        - REMEDY: REMOVE the EMITTING ITEM
    - ASBESTOS:
      - used in the PAST for INSULATION and FIRE RETARDANT
      - can CAUSE LUNG DISEASE including CANCER
      - in OLDER HOMES and BUILDINGS - CEILINGS, FLOORS, PIPES
      - Some Indications:
        - CEILINGS, WALLS covered with GRAINY PLASTER
        - CEILINGS, WALLS sprayed with FLUFFY, STRINGY MATERIAL
        - PIPES covered with it
      - LICENSEE should have OLDER BUILDINGS INSPECTED for it
      - SELLER and BUYER should be INFORMED
      - removal is COMPLICATED and EXPENSIVE
    - LEAD:
      - comes from LEAD PLUMBING and LEAD-BASED PAINTS
      - from WATER from PLUMBING, eating PAINT FLAKES, INHALING PARTICLES
      - HIGH BLOOD PRESSURE can WORSEN
      - CHILD may suffer IMPAIRED MENTAL/PHYSICAL DEVELOPMENT
      - LICENSEE should be aware...
        - HUD housing MUST BE in COMPLIANCE with HUD REGULATIONS
        - LEAD PLUMBING connected to PUBLIC WATER SYS is PROHIBITED by EPA
        - if VIOLATIONS - then HUD, VA assistance NOT AVAILABLE
        - PEELING PAINT in < 1978 HOMES are MOST LIKELY
          - RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT of 1992
            - aka TITLE X
            - SECTION 1018: REQUIRES DISCLOSURE
              - provide "PROTECT YOUR FAMILY FROM LEAD IN YOUR HOME"
              - SELLERS must give BUYERS 10 DAYS for TESTING (BUYER PAYS)
              - SALES CONTRACTS and LEASE MUST DISCLOSE
              - LICENSEE responsible to ADMONISH SELLER or LESSOR
            - NOTE: does NOT require SELLER or LESSOR to REMOVE BAD PAINT
    - GROUNDWATER CONTAMINATION:
      - comes from...
        - PESTICIDES and FERTILIZERS
        - leaking GROUND STORAGE TANKS
        - HAZARDOUS WASTE DUMPS
        - MINING
      - LICENSEE gets INFO from...
        - HEALTH AUTHORITY
        - NEIGHBORS
        - INSPECTION - usually CHEAP and EASY - NOT SO for INDUSTRIAL JUNK
        - REPORTS
        - PATCHES of OIL or PLACES where nothing will grow
        - PREVIOUS USE of PROPERTY
        - APPROPRIATE AGENCY for HISTORY of PREVIOUS OWNERS
        - are there AIR VENTS - clue to underground tank
      - LICENSEE must DISCLOSE to ALL
    - HAZARDOUS WASTE DUMPS:
    - UNDERGROUND STORAGE TANKS:
      - like, if you know the property WAS a GAS STATION...
        - encourage SELLER and BUYER to contact APPROPRIATE AUTHORITY
  - DISCLOSURE STATEMENT
    - a CHECKLIST FILLED OUT by the SELLER
    - LICENSEE gives a copy to any PROSPECTIVE BUYER
    - PROTECTS both LICENSEE and SELLER from LIABILITY
  - DUE DILIGENCE INVESTIGATION:                  
    - VERY THOROUGH and TIME-CONSUMING
    - SUPERFUND AMENDMENTS and REAUTHORIZATION ACT of 1986
      - PERMITS "INNOCENT LANDOWNER" DEFENSE
      - MUST PROVE that INVESTIGATION was done BEFORE TRANSFER
      - MINIMUM REQUIREMENTS:
        - REVIEW of PREVIOUS and CURRENT OWNERSHIP and USAGE
        - REVIEW of PREVIOUS INSPECTIONS, INVESTIGATIONS, LITIGATIONS

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