Environmental Issues for Real Estate Professionals Continuing Education Environmental Issues for Real Estate Professionals

Course Objective Enhance your ability as an agent to work with buyers and sellers on transaction details and negotiations Increase your knowledge and understanding of how environmental issues affect the property and the potential sale of the property Improve your ability to counsel buyers on making offers, taking into consideration conditions so you can better identify with the property Enhance your ability to negotiate deals with increased knowledge of environmental issues related to the property Review bullet points on slide.

Property Inspections and Environmental Issues Property inspectors provide visual inspections Visual findings of environmental conditions can only be confirmed with scientific testing Remediation should only be performed by licensed, qualified and certified specialists

Property Inspections and Environmental Issues Common sense should prevail when deciding whether to remediate or how to remediate Ask your property inspector for recommendations

To Be Discussed Underground storage tanks (UGSTs) Radon Asbestos Lead-based paint Mold Underground storage tanks (UGSTs) Chinese drywall Urea formaldehyde (UFFI) Topics covered in this presentation

Radon Radon is an odorless, tasteless, invisible gas Second leading cause of lung cancer in the United States and Canada, next to cigarette smoke Comes from the ground and can be found in the air we breathe and the water we drink Discuss bullet points about radon.

Radon Comes from a natural breakdown in soil and rock Can be found in any home, school, office, public building Highest risk from long-term exposure is your home, where you spend the most time

Radon The amount of radon in the air is measured in picocuries per liter of air or pCi/L Two types of short-term testing methods 1. Active 2. Passive Source: Zone and legend map provided by EPA Web site

Radon Testing Methods: Active Uses active devices (electric power required) Continuous radon monitors Continuous working level monitors Requires operation by trained testers Provides a continuous report of radon levels present Reveals unusual or abnormal swings in the levels during the test period Costs more than passive device Ensures a more reliable short-term test result

Radon Testing Methods: Passive Uses passive devices (no electric power needed) Charcoal canisters Alpha-track detectors Charcoal liquid scintillation Electret ion chambers (EIC) Review EPA zoning map. Red is highest concentration. Yellow is 2.0 or below

Radon Testing Guidelines Testing device should be placed at the lowest living area of the home Minimum test period of 48 hours Ensure that the test is approved by the U.S. Environmental Protection Agency (EPA) or your state or province’s requirement

Radon Testing: Canisters E-perm results can be calculated immediately upon retrieval of canister following the test period E–perm uses EIC technology The base of these units hold and electrical charge. This charge is measured before and after a test. The more the charge dropped during the test, the more radon is in the air.

Radon Testing: Continuous Monitors Instant results are available at the push of a button following the test period These units have built-in tamper sensors to detect whether they were moved, etc.

Radon Mitigation Systems What level of radon is unsafe? When should you mitigate the radon level in a house? EPA Guidelines: With active (continuous monitoring) testing, at 4.0 pCi/L or higher, the EPA recommends installing a radon mitigation system With passive (canisters) testing, average the results of two canisters or average results from back-to-back tests, then mitigate if results are 4.0 pCi/L or above Discuss costs for mitigation systems. “Sub-slab” ventilation is the most common and easiest to install.

Choosing a Radon Mitigation System When selecting a radon mitigation system for your home, you and your contractor should consider several things: How high the radon level is in your home's key living areas The cost of radon mitigation system installation Radon mitigation system operation costs Your house size and type of foundation. In most cases, a system with a vent pipe and fan is used to reduce radon. Discuss bullet points

Asbestos Asbestos is a mineral that occurs as a long thin fiber in the environment Some of the jobs in which people have been exposed to asbestos are those that involve factory work, demolition, insulation, shipbuilding, carpentry, installation of brake linings in vehicles and many other jobs. Mesothelioma Cancer of the lung lining Asbestos causes mesothelioma Asbestos is the major cause of mesothelioma in the United States Asbestos refers to a naturally occurring family of minerals. “Chrysotile” is the biggest culprit. Discuss cancer-related issues with asbestos. The only positive way to determine the presence of Chrysotile is by sending a sample to a lab.

Asbestos Asbestos has been found in residential building products and components: Insulation Floor covering HVAC ductwork Boiler piping Ceiling tiles Popcorn ceiling texture Exterior siding Exterior roof coverings Discuss bullet points where asbestos-based products can be found in a residence.

Conditions With Asbestos Friable Loose, deteriorated, can become airborne if disturbed Considered unsafe in this condition and should be remediated Nonfriable Remains intact, solid, only becomes friable when disturbed Remediation generally considered optional in this condition Discuss the difference between friable and nonfriable.

Asbestos Insulation Some vermiculite insulation may contain asbestos Zonolite contains asbestos Friable in this example if disturbed Explain that not all vermiculite insulation contains asbestos. Samples must be submitted to a lab for results.

Asbestos Floor Coverings Found in older sheet flooring (seen in photo at right) Has been found in older 8-inch and 9-inch floor tiles from the 1940s to the 1970s Not friable in this example unless loose or disturbed Discuss bullet points.

Asbestos HVAC Ductwork Installed on older round metal ductwork systems to help retain the heat and seal the seams Has a whitish, grayish color with a rough texture Chrysolite Contained asbestos and was installed on furnace flue pipe Discuss bullet points

Asbestos Boiler Piping Systems Installed as an insulator to retain temperature Friable in this example

Asbestos Ceiling Tiles Some ceiling tiles may contain asbestos Found in tiles up to the 1970s Not friable in this condition unless removed or disturbed Discuss bullet points

Asbestos Popcorn Ceiling Texture Asbestos was used to create the clumpy, rough texture Products were used through the 1970s Not friable in this condition unless disturbed Discuss bullet points

Asbestos Exterior Siding Often called slate-asbestos Manufactured through the 1970s 12 inches wide and up to 4 feet long 4x8-foot sheets Not friable in this condition as long as it is not disturbed May be sided over or must be removed when re-siding, depending on jurisdiction Discuss bullet points

Asbestos Roof Coverings No longer being installed Very brittle by now Not friable in this condition Inspectors cannot physically walk for inspection Jurisdictions vary for removal or covering over Discuss bullet points

Asbestos Can be an issue inside or outside the home, especially if it’s in friable condition Can be expensive to remediate Must be certified to remediate Samples must be submitted to certified lab for results of content Unprotected exposure can lead to health risks Discuss bullet points

Lead-based Paint Most homes built before 1960 contain heavily leaded paint. Some homes built as recently as 1978 may also contain lead paint. Lead paint was typically used on baseboards and window trim, but it may also be on other surfaces. Old lead-based paint is the most significant source of lead exposure in the United States today. Harmful exposures to lead can be created when lead-based paint is improperly removed from surfaces by dry scraping, sanding or open-flame burning. Discuss bullet points

Lead-based Paint Lead paint in good condition is usually not a problem except in places where painted surfaces rub against each other and create dust Leave lead-based paint undisturbed if it is in good condition; do not sand or burn off paint that may contain lead

Lead-based Paint Individuals have been poisoned by scraping or sanding lead paint because these activities generate large amounts of lead dust Consult state health or housing department for suggestions of who can help test your home for lead paint Hire a person with special training for correcting lead paint problems Occupants should leave the building until all work is finished and clean-up is done

Lead-based Paint Hire qualified professionals do remediation or abatement work Trained professionals use a range of methods when checking your home, including: Visual inspection of paint condition and location A portable X-ray fluorescence (XRF) machine Lab tests of paint samples Surface dust tests Contact the National Lead Information Center (NLIC) for a list of contacts in your area Discuss bullet points

Mold Mold may begin growing indoors when mold spores land on wet or damp surfaces Mold cannot grow without water or moisture Lack of ventilation (air movement) can contribute to mold growth Molds have the potential to cause health problems, as some individuals are sensitive to it and may have an allergic reaction

Mold It is impossible to get rid of all indoor mold and mold spores indoors; some mold spores will be found floating through the air in house dust The realistic goal would be to minimize mold Remember these key principals of mold: Mold spores will only grow if moisture is present The key to mold control is moisture control A. Reduce moisture B. Increase ventilation

Mold How to identify mold: Per the EPA, in most cases, if visible mold is present, sampling is unnecessary There are no EPA or federal limits set for mold so there is no way to check for compliance with federal standards

Mold What to do if you have mold: Act quickly, as mold damages what it grows on Clean/remove mold and remedy the source of moisture If the moldy area is less than 10 sq. ft., almost anyone can handle the job. If the area is larger, hire a professional and follow EPA recommendations on clean-up

Mold Certain housing components are fairly absorbent or porous and may be difficult or impossible to clean: Carpet, ceiling tiles, fabrics Wood components, such as the wall and roof framing, floor and ceiling joists Plaster materials, whether it be the old style plaster and lathe or more commonly used drywall or gypsum board A professional remediator may be needed to evaluate, clean or replace such components

Mold When water leaks or spills: Act quickly In most cases, if wet or damp materials/areas are dried 24 to 48 hours after a leak or spill occurs, then mold will not grow Mold can grow essentially anywhere. On the outside of a home, it can grow on anything from lawn chairs to grass. It only takes water 48 hours for mold to grow. Discuss bullet points.

Mold Bathroom tips: Places often or always damp can be hard to maintain completely free of mold Increasing ventilation (exhaust fan) and cleaning more frequently will usually prevent mold from recurring

Underground Oil Storage Tanks (USTs) Can be buried outside next to the house. Look for the vent and fill pipe.

Underground Oil Storage Tanks (USTs) What is an “abandoned" UST? Many USTs are no longer used, rendered obsolete by piped-in natural gas or electric baseboard heat A UST that is no longer in use is considered to be abandoned Discuss proper term “abandonment.”

Underground Oil Storage Tanks (USTs) What should be done with an abandoned UST? Department of Ecology and many local fire departments recommend permanent closure for abandoned USTs. The process of permanently closing a tank is referred to as "decommissioning" A tank may be decommissioned by capping, filling it with an inert material such as slurry or foam, or by removing it from the ground Decommissioning also involves removing heating oil and sludge from the tank Each jurisdiction may have different requirements.

Underground Oil Storage Tanks (USTs) Why decommission an abandoned UST? Abandoned USTs are a potential source of contamination of the soil and groundwater and may pose a fire and explosion hazard under certain conditions USTs can corrode and deteriorate and possibly cave in and collapse USTs should be decommissioned whenever they are no longer used or whenever there are questions about their structural integrity or about their ability to hold product without leaking Discuss bullet points

Underground Oil Storage Tanks (USTs) Why decommission an abandoned UST? Under the Model Toxics Control Act, a tank owner may be held liable for contamination caused by a leak Many times the tank does not become an issue until the homeowner decides to sell the home and a buyer’s inspection is performed on the home Discuss bullet points

Underground Oil Storage Tanks (USTs) If an underground storage tank has leaked, what should be done? Certain states have reporting requirements based on the extent of contamination found Minor leaks or spills from residential heating oil tanks do not have to be reported because they affect only the soil near the tank Discuss bullet points

Chinese Drywall If the back of drywall reads: OR

Chinese Drywall Came into the United States in approximately 2001 through at least 2007 Has been found throughout the United States and Canada Contains high amounts of sulfur, which has the tendency to emit a rotten-egg smell and turns copper components like wiring, plumbing and internal HVAC equipment black, leading to corrosion of those components Discuss bullet points

Chinese Drywall Studies show that if some Chinese drywall is found in a home, it doesn’t mean that all ceilings and walls are covered with it — some surfaces may have been constructed with it while others weren’t Any home containing Chinese drywall could lead to a very expensive repair A general home inspection may not identify all Chinese drywall, as it is “a visual noninvasive inspection of readily accessible components” Once the house is completed, it is difficult to see the stamping on the back side of the drywall Discuss bullet points

Urea Formaldehyde (UFFI) Formaldehyde is an important chemical used to manufacture building materials and numerous household products. Sources of Formaldehyde: Pressed wood products (hardwood plywood wall paneling, particleboard, fiberboard) Urea-formaldehyde foam insulation (UFFI) During the 1970s, many homeowners had UFFI installed in the wall cavities of their homes as an energy conservation measure. However, many of these homes were found to have relatively high indoor concentrations of formaldehyde soon after the UFFI installation Discuss bullet points

Urea Formaldehyde (UFFI) Looks similar to today’s spray foam type insulation:

Urea Formaldehyde (UFFI) Health Effects of UFFI: Can cause watery eyes, burning sensations in the eyes and throat, nausea and difficulty in breathing in some humans exposed at elevated levels High concentrations may trigger attacks in people with asthma Some people may develop a sensitivity to formaldehyde, and it has been shown to cause cancer in animals and may cause cancer in humans Discuss bullet points

Property Inspections and Environmental Issues Property inspectors provide visual inspections Visual findings of environmental conditions can only be confirmed with scientific testing Remediation should only be performed by licensed, qualified and certified specialists Common sense should prevail when deciding whether to remediate Ask your property inspector for recommendations

Thank you!