1. Environmental Issues and the Real Estate Transaction LEARNING OBJECTIVES: Define and list hazardous substances. Define and describe landfill. Identify and describe CERCLA. Define and describe radon, urea-formaldehyde, polychlorinated biphenyl. Define encapsulation. Discuss the potential hazard of underground storage tanks. Define and describe retroactive liability.

2. Environmental Issues and the Real Estate Transaction LECTURE OUTLINE: I.Environmental Issues A. Need to balance commercial use of land with preservation of vital resources and protection of the quality of water and soil. B. Prevention and cleanup of pollutants and toxic wastes revitalize land and add greater opportunity for responsible development. C. Environmental issues are important in practice of real estate 1. Consumer more health and safety-conscious. 2. Licensees must be alert to existence of environmental hazards. a. disclosure at time of transfer of property b. familiar with state and federal environmental laws and regulatory agencies. c. Disclosure at time of transfer of property d. Familiar with state and federal environmental laws and regulatory agencies

3. Environmental Issues and the Real Estate Transaction LECTURE OUTLINE: II.Hazardous Substances (See Figure 21.1) A. Asbestos 1. Once used as insulation; banned in 1978 2. About 20 of the nation’s commercial and public buildings contaminated. 3. Health hazard. a. inhaling b. harmful only when disturbed or exposed. c. highly friable. d. no safe level of asbestos exposure. 4. Used also in residential properties a. to cover pipes, ducts. b. fire resistant property made it popular 5. Costly to remove a. Requires state licensed technicians and specially sealed environments. b. Disposal at licensed facilities. c. Encapsulation, or sealing off of disintegrating asbestos may be preferable method of containment.

4. Environmental Issues and the Real Estate Transaction LECTURE OUTLINE: B. Lead-based Paint and Other Lead Hazards. (See Figure 21.2) 1. Lead used as paint pigment. 2. present in about 75% of private homes. 3. elevated levels in body cause serious damage to brain, kidneys, 4. nervous system and red blood cells. 5. Lead particles can be present anywhere in sand. ground water and 6. Banned in 1978 7. No federal regulations that homeowners test for presence of lead- based paint. a.EPA and HUD regulations require disclosure of any known lead-based paint hazards to potential buyers and renters. Must attached to all residential leases and sales contracts along with hazard pamphlet. b.Purchasers have 10 days to conduct risk assessment or inspection. c.Purchasers not bound by real estate contract until 10-day period expired. C. Radon 1. Caused by natural decay of other radios-active substance. Eastern United States high in radon. 2. When trapped in buildings high concentration. 3. Colorless/tasteless- impossible to detect without testing.