Environmental Issues in Real Estate. Potential hazards to look for with the real estate buying...

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Environmental Issues in Real Estate

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Environmental Issues in

Real Estate

Online Continuing Education

Faculty:

Susan Davis, CDEI

Sigalle Barness, Esq.

FurtherEd

61 Broadway, Suite 1105

New York, NY 10006

1 (877) 518-0660




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Environmental Issues in

Real Estate

Online Continuing Education

Faculty:

Susan Davis, CDEI

Sigalle Barness, Esq.

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TABLE OF CONTENTS

I. UNIT I: ENVIRONMENTAL HAZARDS & WETLANDS

A. WASTE DISPOSAL SITES...................................................................................... 3 B. BROWNFIELDS ...................................................................................................... 5 C. SUFERFUND ........................................................................................................... 6 D. SMARTGROWTH .................................................................................................... 7 E. WETLANDS ............................................................................................................. 9 F. MARSHES ............................................................................................................. 11 G. SWAMPS ............................................................................................................... 13

II. UNIT 2: AFFECTS ON REAL ESTATE & FEDERAL LAWS

A. LIABILITIES........................................................................................................... 18 B. LEAD ..................................................................................................................... 19

C. MOLD .................................................................................................................... 23

C. RADON .................................................................................................................. 30

III. UNIT 3: HEALTH RISKS & DANGERS

A. ASBESTOS ........................................................................................................... 34

B. FORMALDEHYDE ................................................................................................. 36

C. GROUNDWATER .................................................................................................. 37

D. UNDERGROUND STORAGE TAKS ..................................................................... 38 E. METH LABS .......................................................................................................... 40

III. UNIT4: HEALTHY HOMES

A. ROLE OF HOMEOWNER ...................................................................................... 46

B. QUALITY OF INDOOR ENVIRONMENTS ............................................................ 47

C. CAUSE OF POOR INDOOR QUALITY ................................................................. 48




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D. ENERGY EFFICIENT HOMES .............................................................................. 49

E. EQUIPMENT PERFORMANCE RATINGS ............................................................ 51




Unit 1 Introduction

Any dialogue today regarding the environment and the impact on, or by, real property

use must begin with a look at changes over the past few years and where thosechanges are taking our industry. The need to possess a working knowledge of environmental issues is more important than ever for all real estate professionals.

Although it's not possible to know and remember detailed information aboutenvironmental laws, regulations, and issues, it is vital that you familiarize yourself withthese subjects and know where to find the answers you need to help your clients.You must anticipate possible problems and concerns that may arise during transactionsand also know where to refer clients and how to use other resources when a question or problem arises that is beyond the scope of a real estate practitioner's expertise. You willnot be an expert in environmental law and you do not need to be. You do need to know

how to handle transactions involving environmental concerns.

Finding unexpected environmental hazards and the accompanying potential financialand legal difficulties can make any real estate transaction difficult, if not impossible,to complete. When a property has an environmental hazard, the buyer has severalpossible reactions:

● walk away from the deal;

● live with the problem;

● assume the cost of fixing the problem;

● accept a discount on the value of the property;

● require the seller to fix the problem; or

● fix the problem after the transaction at seller's expense as agreed in the purchaseagreement.

The best course of action depends on the hazard and the degree of financial risk theproperty represents. If the property is heavily contaminated, the buyer should probablywalk away from the deal. If the problem is minor, it might make sense to determine a discount and fix it later. Anenvironmental contingency clause helps to reduce the financial risk of the purchase,so the buyer should always include it in the written purchase agreement. This clauseallows the buyer to go back to the seller for help with environmental problems foundduring the inspection.

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Remember, when representing a seller, whether or not your client is asked about thepresence of environmental hazards, if he/she has knowledge about them, the clientmust disclose any environmental problems. The client must tell the buyer what he/sheknows about the condition of the property even if the buyer never asks a question. The

condition should be disclosed in writing to protect everyone in the transaction.

Real and perceived environmental problems can affect the value of real property(land and buildings). Your ability to market a property can change drastically whenenvironmental problems are found. The appraiser's estimate of the "cost to cure" theproblem is important in determining the marketability of the property. The appraisedmarket value will be reduced by the amount needed to correct the problem. Inextreme cases, the cure can exceed the market value. The lender may require certainenvironmental test results to help make a loan decision.

Two commonly requested tests are a water quality test for a home with a well and a

soil evaluation for a building lot to determine if a septic system will be successful. Other commonly requested procedures include tests for asbestos and lead in older homes.

Buyer's and seller's agents should have general information about the history of theneighborhood and potential environmental hazards in the area.

A licensee should be able to answer the following questions amongst others:

● Does the area have houses with elevated radon levels?● Is the area served by an older water system that could be a source of lead?● Does the area have homes with underground tanks for heating oil?● Is the neighborhood built on a fill area that was formerly a dump site?● Has the area been flooded? Does the property have mold?● Has the property been used as a meth lab

While the listing agent represents the seller, he/she is required to disclose notedpotential environmental hazards. Any agent involved in the transaction should be able torefer the buyer or seller to environmental specialists. Recent case law indicates that the public has a right to expect real estate professionalsto exercise due care in obtaining and releasing information regarding the environmentalstatus of property.

If a preliminary examination of a property indicates that the transaction involvesan environmental concern, you need assistance from a professional trained inenvironmental site assessment. You can get help from one or more professionals,including:

● a home inspector;● an appraiser;

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● a specialized environmental consultant; and/or ● an environmental site assessor.

Always check references and ask for proof of certifications or licenses.

In the past, most people were not concerned about environmental due diligenceand liability for environmental hazards. The emphasis of course is the importance of checking out environmental problems before a property is purchased. Armed with anawareness of such concerns, you will be more likely to exercise due diligence, and toprotect both yourself and your clients from liability. The public has become more aware of health, environmental and economic damagesthat can result from environmental hazards. In response, real estate professionalsmust expand their areas of expertise to include the growing awareness of the rightsand responsibilities of both buyers and sellers in transactions involving environmentalconcerns.

In this course we will explore natural and man-made environmental hazards to includebrownfields, underground storage tanks, wetlands, indoor pollutants, mold, carbonmonoxide and meth labs. All of which can negatively environmentally impact realproperty

Unit objectives

Upon completion of this unit the student will be able to:

● describe the responsibilities of a licensee regarding disclosure of knownenvironmental hazards;

● discuss brownfields, cleanup, redevelopment and smart growth;● identify the unique characteristics of different wetland types;

Let’s begin our discussion with environment issues that impact communities.

Waste disposal sites State and Federal legislation regulates the generation, flow and disposal of hazardous

and other solid wastes. The United States produces approximately 294 pounds of wasteper person per day. This adds up to 13 billion tons of waste each year. Most of this isindustrial wastes and many of these wastes are toxic.

According to the EPA In 2010, Americans generated about 250 million tons of trash.This is 4.43 pounds per person per day. These wastes are not negligible becauselandfill space is declining. Over 85 million tons of this material was recycled andcomposted. On average, we recycled and composted 1.51 pounds of our individual

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waste generation

Additionally, the toxic wastes we produce include:

Current environmental regulations address five methods of waste management:

● reclamation;● treatment;● incineration;● storage; and● disposal.

Even though we now have more protection than ever against the release of toxicwastes, no one wants to live near a waste treatment or disposal site. The best way toprotect your clients is for you, as a real estate professional, to be aware of the presence

of hazards before offering a property for sale or lease. You should also stay alert toproposed changes in zoning which might allow hazards to develop once your clientoccupies the property.

Other things you can do to protect both your personal liability and your client:

● drive around the immediate neighborhood and the area within a one mile radius of the property under consideration;

● pay special attention to areas where children play and go to school;

● ask questions about potential hazards;

● check records from local or state health departments, planning agencies and

pollution control agencies;

● talk to neighbors and/or developers; and

● check in the local newspapers. If you discover a hazard, discuss your concerns with all parties to the transaction. Thehazard may be easily remedied, or you may discover that the remedy would involveaggressive community action or hiring a lawyer. There are thousands of hazardouswaste sites that may be presenting a public health hazard by contaminating water andsoil.

Some examples of such hazardous waste sites:

● authorized landfills used for disposing of community waste;● landfills approved to receive industrial and agricultural hazardous wastes; and

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● unauthorized dump sites.

Red flags for possible unauthorized hazardous dump sites include:

● depressions, mounds or soft spots that could indicate the presence of landfill;

● traces of concrete, metal or asphalt that could indicate prior commercial use;● ravines or earth embankments that could indicate former dumping on the site; and● discoloring of the soil or stressed vegetation that could be caused by

contamination.

If you have cause for concern, remember to review all available information regardingformer uses of the property and consult the EPA - http://www.epa.gov/or Department of Ecology for information about known disposal sites in the area.EPA Superfund

If you discover a red flag, recommend that your client seek expert assistance for soiland groundwater sampling to determine whether a site has been contaminated.

Always recommend that parties to any transaction involving a suspected hazardouswaste site consult with state and federal environmental protection officials, local healthand planning officials, and remediation experts. Put your concerns in writing. Everyclient should be aware of suspected environmental hazards and the potential financialand legal difficulties that can result from owning a property that has such a hazard. Thecosts of correcting the problems caused by someone else can be significant. Lenders also consider hidden risks related to the property and are reluctant to becomeinvolved in a property with real or perceived hazardous waste problems. The reason isobvious - the lender could become an owner and be financially responsible for fixingany problems.

Brownfields

EPA DefinitionWith certain legal exclusions and additions, the term "brownfield site" means real

property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.

Brownfields are economically depressed urban areas suffering from real or perceivedcontamination from a hazardous material, often stored in an underground storage tank.Brownfields can also be defunct, derelict, or abandoned commercial or industrial sites,many of which are tainted with toxic waste.

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http://www.epa.gov/

http://www.epa.gov/superfund/sites/

http://www.epa.gov/brownfields/

http://www.epa.gov/brownfields/




http://www.epa.gov/

http://www.epa.gov/

http://www.epa.gov/

http://www.epa.gov/

http://www.epa.gov/

http://www.epa.gov/

http://www.epa.gov/

http://www.epa.gov/




When the EPA first issued regulations for cleanup, it favored treatment or permanentremedies rather than containment. To ensure that some party associated with theproblem could be held accountable, the EPA extended liability to include:

● individuals;

● estates; and● parent corporations.

In older, urban areas, EPA enforcement policies made many industrial sitesunmarketable because lenders did not want to end up with unknown environmentalliabilities. Landowners avoided voluntary site investigations for fear of mandatorycleanups. Rural land became very attractive to manufacturing and commercial venturesbecause it was perceived to be more likely free of environmental problems. SUPERFUND

Comprehensive Environmental Response Compensation and Liability Act (CERCLA or Superfund). This bill contains three titles dealing with funding and liability for assessingand cleaning up contaminated properties.

● TITLE I codified and expanded EPAs current brownfields program by authorizingfunding for assessment and cleanup of brownfield properties.

● TITLE II exempted from Superfund liability contiguous property owners

and prospective purchasers, and clarified appropriate inquiry for innocentlandowners.

● TITLE III authorized the funding for state response programs and limited EPA

Superfund enforcement authority at sites cleaned up under a state responseprogram.

As brownfields are abandoned or underutilized industrial or commercial properties,redevelopment is hindered by possible environmental contamination and potentialliability under Superfund for parties that purchase or operate these sites. The EPAestimates that between 500,000 and one million brownfields tarnish the landscapesacross America, typically in urban areas.

Laws spurring more effective and efficient cleanup and redevelopment of brownfieldsare designed to:

● remove environmental hazards from communities;● relieve pressure to develop pristine open space and farmland; and● revitalize communities by creating jobs and returning productive property to local

tax rolls.

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Under Superfund laws, owners and operators of a contaminated property can be heldliable for the cost of cleanup, regardless of whether they actually caused any of thecontamination. This potential liability created a strong incentive for business to avoid

redeveloping brownfields.

Brownfields Revitalization and Environmental Restoration Act This section authorizes up to $200 million per year for brownfield assessment andcleanup, including $50 million per year or 25% of the amount appropriated to carry outcleanup for brownfields with petroleum contamination. For funding purposes, the definition of a brownfield site is real property, the expansion,redevelopment, or reuse of which may be complicated by the presence or potential

presence of a hazardous substance, pollutant, or contaminant.

Examples of such property include:

● land contaminated by petroleum or its products;● land contaminated by a controlled substance; and● mine-scarred land.

This section also lists exclusions and provides for the authority to include someotherwise excluded sites on a site-by-site basis. Entities that are eligible for brownfieldsfunding include states, tribes, local governments, land clearance authorities, regionalcouncils, redevelopment agencies and other entities created by states or localgovernments. Smart Growth This leads us to Smart Growth. Let’s start with a quick look at sustainability and theenvironmental issues which have fueled smart growth. Smart growth is a comprehensive resource program to help address the challenge of growth through local decision making, research, sharing of expertise, creative problemsolving and community consensus.

According to the National Association of REALTORS®, we will need to house nearly 25million more Americans in 10 years. Our primary and secondary schools will be askedto educate half a million more children. Seventeen million more workers will commute toand from their jobs. Obviously, this continued growth will require us to do a better job of preparing our communities for balanced growth-smart growth.

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http://www.smartgrowth.org/why.php







Real estate professionals need to be knowledgeable and committed to understandingthe delicate balance between the need for growth and the need for quality of life. Thisbalance affects the vital interests of all homeowners and property owners.

Land use and environmental regulations that strike a fair and reasonable balance

between private property rights and community interests can be used to managegrowth. Planning, zoning and subdivision laws can evolve to accommodate mixed-usedevelopment, higher densities, as well as the changing population, employment andgrowth patterns of our increasingly diverse society. When public growth management decisions are made at the local level, citizens andbusinesses can find solutions to problems caused by unrealistic growth, and can planfor protecting the quality of life in the area. Real estate professionals have long knownthat quality of life in a community affects the desirability, salability and value of homes. EPA has a database that highlights numerous projects and programs that states and

localities nationwide have implemented to further smart growth policies. The databaserepresents a variety of approaches ranging from formal legislative regulatory effortsto informal plans and programs, all representing innovative ways for communities torealize smart growth.Click on the link to go directly to the Smart Growth Online website.


Smart Growth and brownfields

Brownfields development is an essential component of smart growth as both seek toreturn abandoned and underutilized sites to their fullest potential as community andeconomic assets. The EPA is encouraging communities to incorporate smart growthprinciples into their planning, revitalization and redevelopment efforts.

Grants are available for the redevelopment of brownfields properties as pedestrian-friendly, transit-accessible properties, built compactly with a mixture of land uses, andwith access to public spaces, parks or plazas.

The relationship between smart growth and environmental protection Development greatly impacts the environment. Communities are looking for ways tominimize that impact by directing growth to brownfields and preserving green space.Smart growth planning helps communities by supporting them in improving the processand quality of brownfields revitalization, thereby allowing them to absorb a greater shareof new development, and to ease the pressures on critical open spaces.

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http://www.epa.gov/smartgrowth/about_sg.htm


http://www.epa.gov/region1/brownfields/programs/overview.html























The incorporation of smart growth policies at site-specific levels can make brownfieldsand other infill sites more attractive for redevelopment by focusing on larger economicand regulatory contexts for redevelopment such as changes in land use, transportationor infrastructure investment.

When redevelopment takes place that is transit-accessible, contains a mix of uses, or iscompactly constructed with access to parks or plazas, for example, those involved reapthe benefits of bringing in new investments that achieve community and environmentalgoals, as well as economic ones.

Smart growth is defined as growth that achieves six goals:

● neighborhood livability;● better access, less traffic;● thriving cities, suburbs and towns;

● benefits for all residents;● lower costs, lower taxes; and● keeping open space open.

Wetlands

As a real estate professional, you are charged with two occasionally conflictingresponsibilities in regard to land use regulations:

● respecting the rights of private property owners to determine the best use of their land; and

● protecting the public interests served by wetlands.

Naturally, you are concerned about how wetlands policies affect real estate owners,while at the same time achieving a responsible balance between owners’ rights andenvironmental protections.

If you are involved in a real estate transaction involving property which you think couldbe a wetland, be sure to check with your local authorities concerning any special

restrictions for that property. If you do not know where to check, contact the regionaloffice of the EPA and they can direct you to your local environmental protectionauthority.

EPA / Wetlands

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http://water.epa.gov/type/wetlands/index.cfm







The U.S. Army Corps of Engineers and the U.S. Environmental Protection Agencyshare responsibility for regulating wetlands. Over the past two decades, the Corps hassteadily restricted the amount of wetlands that can be permitted for development.

The U.S. Department of Agriculture (USDA) was given sole responsibility for identifying

all wetlands on agricultural land for both the Clean Water Act and Swampbuster programs. (Swampbuster is a provision that discourages the conversion of wetlands tocropland use

Why all the concern about wetlands?

Wetlands are known by various names: swamps, marshes, bogs, potholes,fens, sloughs or bottomlands. As scientific studies have drawn attention to theimportant biological and physical functions of wetlands (especially in coastal areas),environmental laws have placed more restrictions on wetlands. In this lesson we will bestudying marshes, swamps, and bogs.

Our fish and wildlife populations, including many rare and commercially importantspecies, rely on wetlands for survival. Two-thirds of the species of Atlantic fish andshellfish that humans consume depend upon wetlands for some part of their life cycle,as do nearly half of all federally-listed threatened and endangered species.

Wetlands have been defined in federal laws and regulations as, “Those areas that areinundated or saturated by surface groundwater for a frequency and duration sufficient to support, and under normal circumstances do support, a prevalence of vegetationtypically adapted for saturated soil conditions."

Wetland functions include:

● protecting vital ecological interests;● providing breeding grounds for wildlife;● absorbing floodwaters;● preventing erosion; and● filtering rain runoff.

Wetlands are transitional areas between upland and aquatic environments where water is present long enough to form distinct soils and where specialized "water-loving" plantscan grow.

Biologists recognize wetlands for their many uses and ecological roles they play:

● unique plant communities (includes bogs and their carnivorous plants);● high productivity (highest of any kind of ecosystem on earth);● fish and wildlife habitat;

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http://water.epa.gov/grants_funding/wetlands/facts/fact19.cfm

http://water.epa.gov/grants_funding/wetlands/facts/fact19.cfm




● flood protection (even a narrow band of marsh soaks up flood waters like asponge); and

● a source of recreational enjoyment.

Marshes

Marshes are defined as wetlands frequently or continually inundated with water,characterized by emergent soft-stemmed vegetation adapted to saturated soilconditions. There are many different types of marshes, ranging from the prairie potholesto the Everglades, coastal to inland, freshwater to saltwater. All types receive mostof their water from surface water, and many marshes are also fed by groundwater.Nutrients are plentiful and the pH is usually neutral, leading to an abundance of plantand animal life.

Marshes recharge groundwater supplies and moderate stream flow by providing water to streams. As water moves slowly through a marsh, sediment and other pollutants

settle on the substrate floor or bottom of the marsh. This is an especially importantfunction during periods of drought.

The presence of marshes in a watershed helps to reduce damage caused by floods byslowing and storing flood water. Marsh vegetation and microorganisms also use excessnutrients such as nitrogen and phosphorus from fertilizer for growth. These nutrientscan otherwise pollute surface water.

This marsh wetland type is very important to preserving the quality of surface waters. Infact, marshes are so good at cleaning waters that people are now building replicas of this wetland type to treat wastewater from farms, parking lots and small sewage plants.

Due to their high levels of nutrients, freshwater marshes are one of the most productiveecosystems on earth. They can sustain a vast array of plant communities that, inturn, support a wide variety of wildlife within this vital wetland ecosystem. As a result,marshes sustain a diversity of life that is much larger than their size would indicate ispossible.

Non-tidal marshes In addition to their considerable habitat value, non-tidal marshes serve to mitigate flooddamage and filter excess nutrients from surface runoff. Unfortunately, like many other wetland ecosystems, freshwater marshes have suffered major acreage losses due tohuman development. Some have been degraded by excessive deposits of nutrientsand sediment from construction and farming. Severe flooding and nutrient deposition todownstream waters have often followed marsh destruction and degradation.

Non-tidal marshes are the most prevalent and widely distributed wetlands in North America. They frequently occur along streams in poorly drained depressions, and in theshallow water along the boundaries of lakes, ponds, and rivers. Water levels in these

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non-tidal marsh wetlands generally vary from a few inches to two or three feet, andsome marshes may periodically dry out completely. It is easy to recognize a non-tidal marsh by its characteristic soils, vegetation andwildlife. Highly organic, mineral-rich soils of sand, silt, and clay underlie these wetlands,

while lily pads, cattails, reeds, and bulrushes provide excellent habitat for waterfowl andsmall mammals such as red-winged blackbirds, great blue herons, otters and muskrats.

Tidal marshes Tidal marshes can be found along protected coastlines in middle and high latitudesworldwide. They are most prevalent in the United States on the eastern coast fromMaine to Florida and continuing on to Louisiana and Texas along the Gulf of Mexico.

All are influenced by the motion of ocean tides. Tidal marshes are normally categorizedinto two distinct zones: the lower or intertidal marsh, and the upper or high marsh.

Tidal marshes serve many important functions. They buffer stormy seas, slow shorelineerosion and absorb excess nutrients before they reach the estuaries and oceans.High concentrations of nutrients can cause oxygen levels low enough to harm wildlifeand produce areas such as the "dead zone" in the Gulf of Mexico. Tidal marshes alsoprovide vital food and habitat for clams, crab and juvenile fish, as well as offeringnesting sites for several species of migratory waterfowl.

Pressure to fill these wetlands for coastal development has led to significant andcontinuing losses of tidal marshes, especially along the Atlantic coast. Pollution,especially near urban areas, also remains a serious threat to these ecosystems.Fortunately, most states have enacted special laws to protect tidal marshes and haveagencies to ensure that these protective measures are actively enforced.

Swamps

A swamp is any wetland dominated by woody plants. There are many different kinds of swamps, ranging from the forested red maple swamps of the Northeast to the extensivebottomland hardwood forests found along the sluggish rivers of the Southeast. Swamps are characterized by saturated soils during the growing season, and standingwater during certain times of the year. The highly organic soils of swamps form a thickblack, nutrient-rich environment for the growth of water tolerant trees. Some swamps are dominated by shrubs, such as buttonbush or smooth alder. Plants,birds, fish, and invertebrates such as freshwater shrimp, crayfish and clams require thehabitats provided by swamps. Many rare species, such as the endangered Americancrocodile, depend on these ecosystems as well. Swamps are divided into two maintypes, depending on the vegetation present - shrub swamps and forested swamps.

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Forested swamps Forested swamps are found throughout the United States. They are often inundatedwith floodwater from nearby rivers and streams. Sometimes, they are covered by manyfeet of very slowly moving or standing water. In very dry years, they may represent the

only shallow water for miles and their presence is critical to the survival of wetland-dependent species like wood ducks, river otters, and cottonmouth snakes.

Shrub swamps Shrub swamps are similar to forested swamps, except that shrubby vegetation suchas buttonbush, willow, dogwood, and swamp rose predominate. In fact, forested andshrub swamps are often found adjacent to one another. Mangrove swamps are a typeof shrub swamp dominated by mangroves and which cover vast expanses of southernFlorida.

The soil in shrub swamps is often water-logged for much of the year, and covered attimes by as much as a few feet of water because swamps are found along slow movingstreams and in floodplains. Both shrub and forested swamps serve vital roles in floodprotection and nutrient removal. Many upland creatures depend on the abundance of food found in the lowland swamps, and valuable timber can be sustainably harvestedto provide building materials. Due to the nutrient-rich soils present in swamps, manyof these fertile woodlands have been drained and cleared for agriculture and other development. Bogs Bogs are one of North America's most distinctive types of wetlands, characterized byspongy peat deposits, acidic waters, and a floor covered by a thick carpet of sphagnummoss. They receive all or most of their water from precipitation rather than from runoff,groundwater or streams. As a result, bogs are low in the nutrients needed for plantgrowth, a condition that is enhanced by acid-forming peat mosses. Bogs are uniquecommunities that can be destroyed in a matter of days, but require hundreds, if notthousands, of years to form naturally.

There are two primary ways that a bog can develop:

● bogs can form as sphagnum moss grows over a lake or pond and slowly fills it, or

● bogs can form as sphagnum moss blankets dry land and prevents water fromleaving the surface.

Bogs serve an important ecological function in preventing downstream flooding byabsorbing precipitation. Bogs support some of the most interesting plants in the UnitedStates and provide habitat to animals threatened by human encroachment.

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Bogs in the U.S. are found mostly in the glaciated northeast and Great Lakes region(northern bogs), but also in the southeast. Their acreage declined historically, as theywere drained to be used as cropland and mined for their peat which was used as a fueland a soil conditioner. Over time, many feet of acidic peat deposits build up in bogs.Recently, bogs have been recognized for their role in regulating the global climate by

storing large amounts of carbon in peat deposits.

Even small isolated wetlands play an important role in preserving water quality,providing plant and wildlife habitat, and protecting uplands from flooding. Betweenthe 1950s and 1970s, the nation lost 458,000 acres of wetlands each year. Thatnumber dropped to 290,000 acres between the 1970s and the 1980s and is now beingestimated at 100,000 acres. This is one percent of the wetlands in the U.S. being losteach year. Over the past thirty-plus years we have learned much about the consequences of destroying wetlands. These areas are among the most productive ecosystems on earth.

They are vital to the nation's environmental and economic health. Today, decisionsabout developing privately-owned coastal wetlands are shared by the federal and stategovernments. The economic benefits of development must be balanced against theenvironmental impacts of wetland destruction.

Wetlands compliance requirements In selecting voluntary options for wetlands conservation and management, landownersmust be aware of federal, state and local requirements and conditions for use andmanagement of wetlands.

At the federal level, these requirements include:

● Section 404 of the Clean Water Act, which requires a permit from the U.S. ArmyCorps of Engineers for discharges of dredged or fill material into waters of theU.S., including most wetlands; and

● The Food Security Act (FSA) of 1985, which provides that landowners who

receive USDA program benefits must comply with the wet and highly erodibleland requirements. Any person who plants an agricultural commodity on awetland that was converted after December 23, 1985, or converts a wetlandafter November 1990, is ineligible for USDA program benefits. Farmers whoplant agricultural commodities on highly erodible land must do so according to anapproved conservation plan.

Landowner assistance and stewardship

Assistance for owners of wetlands is available from a variety of sources, including theClean Water State Revolving Fund, and both federal and state assistance programs.

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Since wetlands are the transition zone between water and dry land, the issue hasalways been, and will continue to be, how, and where, the line between them is drawnon the ground. In addition to EPA, the Army Corps of Engineers and the USDA, other federal agencies administer wetlands programs:

● U.S. Fish and Wildlife Service● Partners for Wildlife● North American Waterfowl Management Plan● U.S. Forest Service● Bureau of Land Management● Bureau of Reclamation● National Marine Fisheries Service● National Park Service● U.S. Department of Transportation

There are also state and local monies to assist landowners with restoration or creation

of wetlands. Again, if you are a real estate professional working on a transaction thatinvolves wetlands, be sure to contact the appropriate federal, state and local resourcesto ensure both compliance with regulations and availability of assistance, in the eventthe property owner is eligible for such assistance. Because private landowners value their property as an economic investment and asource of income, the economic value or potential of a landowner's property is of greatimportance. Federal and state laws and regulations regarding environmental concernson private property are moving toward taking into consideration: the economic valueof the property; the landowner's long- and short-range plans and expectations for theproperty; and the landowner's present economic condition.

Public and private assistance programs and the following options used individually or in combination can help landowners make decisions that protect the environment andprotect their economic investments: Technical assistance in:

● wetlands creation and restoration;● landowner master plans; and● management of wildlife, forestry and agriculture.

Financial incentives:

● cash benefits;● limited development opportunities;● cost sharing;● tax incentives for agriculture and forest lands;● wildlife agreements; and● conservation management agreements.

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Unit 1 Quiz

Unit objectives


● Discuss environmental problems and issues which may affect real estate

activities and result in liability for licensees and owners;

● Explain specific information about some of the most common environmentalhazards affecting real estate; and

● Specify federal laws and regulations governing environmental hazards and the

real estate licensees’ obligations involving such hazards.

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Environmental hazards are making an increasing impact on the real estate profession

and the manner in which real estate is purchased. The presence of environmental

hazards can substantially affect the uses, value, and salability of real property. In some

cases, when removal of these substances is required, the cost of removal may exceed

the value of the property. The laws in most states require that a seller disclose known

material facts regarding a property's condition to a potential purchaser. The presence of

an environmental hazard is considered to be material fact. Further, a real estate agent

may also be responsible for disclosing material facts that the agent knew of or should

have known about.

As our knowledge of the natural environment evolves, the body of law governing

potentially harmful environmental hazards and their effects on real estate transactions

also is evolving. The risk associated with the ownership of real property involving

environmental hazards such as contaminated building materials and pollutants, as

well as nonhazardous conditions mentioned in the previous unit such as wetlands is

an environmental risk. Appraisers often attach an environmental addendum to their

appraisal reports to note any observable environmental risks that may reduce property

value.

The rights and responsibilities of buyers and sellers are determined by state and local

laws or terms negotiated into the sales contract between the buyer and seller. Many

states have passed a variety of localized environmental protection laws regarding

various types of pollution – air, water, noise, and solid waste. In addition cities and

counties also pass environmental legislation of their own.

Sellers should be aware of any environmental issues affecting the property to avoidpossible liability and lawsuits, even after their property has been transferred. Licensees

can be held responsible for what they know or should have known regarding a

material defect in a property. Environmental problems and their disclosure, such as

the mandatory lead-based paint disclosure are increasingly a part of a real estate

professional's responsibility.

The presence and remediation of hazardous substances directly affects the home-

buying process. Toxic chemicals, pesticides and other elements on or near a propertyor inside a dwelling may have a serious effect on the quality of life and the health of

individuals who occupy the structure

Liabilities

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Litigation regarding environmental hazards may involve real estate licensees and

their sellers and buyers. Air and water quality can be severely compromised in our

modern environment. Because of this, most real estate contracts contain contingencies

that call for investigation and remediation of various related problems before transfer

of property can take place. Although the Real Property Transfer Seller Disclosure

Statement, required by many states is designed to give sellers the opportunity to list

known environmental hazards, information completed by the seller on this form does

not necessarily release licensees from liability associated with the property buyer's

purchase or lease decisions.

Lenders are also becoming increasingly concerned and cautious about the

environmental condition of properties purchased with mortgage loans. Federal and

state legislators have passed a number of environmental protection laws in an attempt

to respond to the growing public concern over the improvement and preservation

of America's natural resources. For example, The Clean Water Act, The Clean Air

Amendment, and The Superfund Amendment and Reauthorization Act.

Common environmental hazards

This is certainly not an exhaustive list of hazards, nor does this course give all of the

solutions to these problems. It is intended as an introduction to the topic in order to

make licensees aware of environmental concerns and able to find expert help when

additional expertise is needed.

For example, a hazardous substance is defined as any material that poses a threat to

the environment or to public health. Under Superfund, the Environmental Protection Agency (EPA) lists hundreds of hazardous substances that are either toxic (leads to

death), corrosive (acidic), ignitable (danger from heat or smoke), or reactive (can lead to

explosions). The EPA also regulates the disposal of hazardous wastes - materials that

are inherently dangerous to handle or dispose of.

In this unit we will explore some naturally occurring environmental risks – radon, mold,

carbon monoxide that affect our indoor air quality. The Environmental Protection

Agency (EPA) estimates that 30% of all buildings and homes contain enough pollutants

to affect people's health.

Our houses are generally well-sealed and insulated to make them more energy efficient.This also makes them more likely to accumulate all sorts of pollutants. Pollution levels

from an individual indoor source may not pose a significant risk to health by itself, but

most homes have multiple pollution sources. The combined effect can create a serious

risk. Biological contaminants include bacteria, mold, mildew, viruses, mites, pollen,

cockroaches and animal dander.

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Toxins can be generated by the synthetic and mechanical "stuff" with which we fill our

homes:

● water heaters which give off toxic exhaust fumes;

● furniture that releases formaldehyde into the air;

● paints that contain lead; and/or ● asbestos that insulates pipes

Other sources of pollutants are more organic in nature:

● tiny dust mites that hide in bedding;

● mildew that grows in the bathroom or other damp places;

● radon that seeps into the basement.

Lead

Lead is a soft, grey-blue metal known to cause cancer in laboratory animals and tobe toxic to many of the human body's systems, even in small amounts. Lead is found

worldwide in rocks and soils.

Exposure usually results from breathing or swallowing lead from such common sources

as interior or exterior paint, drinking water, soil and dust around the house, industrial

pollution, exhaust fumes, pipes, water coolers, and arts and crafts such as stained glass

and pottery-making, which involve heating lead to high temperatures.

Centuries of mining, smelting and general use have released millions of tons of lead

into the environment. With the advent of the industrial age in the 1800's, the use of leadincreased and with it, the potential for occupational exposure.

Lead's versatility, as well as its favorable physical and chemical properties, accounted

for its extensive use. Lead can be rolled into sheets and made into rods and pipes,

molded into containers and mixed with other metallic elements. Lead was used in

building construction, especially roofing, cornices, electrical conduits and water and

sewer pipes.

Once lead is mined, processed and introduced into the human environment, it is forever

a potential problem. No known or foreseeable technology can destroy or render it

harmless. Nearly all of the lead in the human environment is due to mankind's activities.

Although lead can poison both adults and children, it is especially hazardous to the

developing brains and nervous systems of unborn and young children. Lead poisoning

in children is one of the most common and preventable pediatric health problems in the

United States today.

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As a licensee, you should be aware that the following houses are possible sources of

lead poisoning:

● built before 1978 and that have peeling or chipping paint;

● built before 1960 and that have recent, ongoing or planned renovation or

remodeling;● near a lead smelter, battery recycling plant or other industry likely to release lead;

● near a busy roadway;

● built before 1930; or

● a house with lead water pipes.

The most common high dose source of lead exposure for children is lead-based paint.

Any house built prior to 1978 could have lead-based paint, but houses built before 1950

are at the highest risk.

The Residential Lead-based Paint Hazard Reduction Act (Title X) requires sellers and

landlords to disclose known presence of lead-based paint to prospective buyers and

renters. Purchasers or renters of pre-1978 houses must be given an EPA lead hazard

information pamphlet. They have 10 days to get a lead hazard risk inspection and

must be presented with a sales contract that contains a "Lead Warning Statement." In

addition, the purchaser must sign a statement that verifies that these conditions have

been met. Any violation could result in significant monetary penalties. Under Title X, all

federal agencies must also inspect and abate lead-based paint hazards before the sale

and transfer of federally-owned pre-1960 housing.

According to a HUD survey, 57 million privately-owned and occupied homes built before

1978 contained lead-based paint. Of these housing units, an estimated 9.9 million

were the residences of children under the age of six, those with the greatest risk of

developing lead poisoning. Of these, HUD determined that 3.8 million units have peeling

paint, excess amounts of dust containing lead, or both.

According to EPA estimates, about 74% of homes built before 1978 have lead-based

paint. Common routes of exposure are the ingestion of lead-bearing chips of paint,

chewing on painted surfaces, or swallowing or breathing dust that is generated by the

paint when it deteriorates, chalks or is disturbed by renovation or even abrasion fromthe opening and closing of windows.

Lead in surface dust and soil

There is an association between the presence of lead-based paint and excessive levels

of lead in dust and soil. Other potential sources include atmospheric fallout from the

combustion of leaded gasoline which was deposited prior to its reduction in use as

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an additive, factory emissions, and dust and dirt carried into the house on shoes and

clothing or by pets.

Approximately 16% of all homes built prior to 1978 have concentrations of lead that

exceed 500 ppm in soil adjacent to the house. The greatest threat of lead contamination

from soil is around the close perimeter of the house at the roof drip line. Activity in thisarea should be restricted if the soil is suspected of lead contamination.

Undisturbed soil next to roads is still contaminated with lead, even though nearly all of

the lead has been removed from gasoline. Lead remains in the soil.

Lead in water

As a licensee, you must be aware of the problems of lead poisoning, and the

importance of testing all water supplies to a home or business.

Public water systems have been found to have high levels of lead. The EPA has

estimated that more than a half million American children have unacceptable high levels

of lead in their blood due to lead in drinking water. Drinking water may contribute from

as little as 5% to more than 50% of a child's total lead exposure.

For an average two-year-old child, drinking water contributes 20% of total lead

exposure. Infants whose diets are dependent on formula may receive more than 85% of

their lead exposure from drinking water.

The Safe Drinking Water Act established a maximum contaminant level for lead indrinking water and amendments banned the use of material containing lead in public

water supplies and in residences connected to public water supplies.

Congress banned the use of lead-based solder in plumbing applications such as pipe

connections in homes and buildings; however, in homes built prior to 1988, lead can

enter drinking water from corroded plumbing fixtures, pipes and solder.

The only way to determine lead levels in water is to test a sample. If lead is suspected,

local, county or state health agencies can recommend qualified testing laboratories.

If you suspect lead contamination of any sort, inform the seller of the need to consult

the appropriate health authorities or experts, and inform the potential buyer of your

observations and concerns about the possible presence of lead.

Potential sources of lead in drinking water systems include:

● water service mains (rarely);

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● lead plumbing gooseneck or pigtails;

● lead service lines and interior household plumbing, especially where lead solder

was used; and

● lead-containing alloys, such as faucets and valves made of brass or bronze.

Poorly soldered joints, where the solder contains lead, and accumulations of brass

fittings, may produce high lead levels in water. Dissolved lead in this kind of home water

system will be higher when water has been at rest in the pipes for a period of time.

The combination of copper pipes connected with lead-based solder is found in many

homes and can result in high levels of lead in water. In these circumstances, galvanic

corrosion between the two metals releases relatively large amounts of lead into the

water.

The EPA has determined that newly installed solder is most easily dissolved. As thehome ages, mineral deposits build up on the inner walls of water pipes and act as an

insulating barrier between the water and the solder. Data compiled by the EPA indicates

that during the first five years following home construction, water in the home may have

high levels of lead, with the highest levels recorded during the first 24 months.

As a licensee, be aware of the following:

● special regulations for lead inspection and testing apply to all HUD-associated

housing;

● the EPA prohibits the use of lead in residential and nonresidential plumbing

connected to a public water supply; and● HUD and the Veterans Administration (VA) may not provide assistance for new

residential property if the plumbing contains lead levels exceeding EPA levels of

concern.

Lead in paint

In 1994, HUD and EPA jointly proposed regulations that set forth procedures for

disclosing the presence of lead-based paint for sales of properties built prior to

1978. These regulations reinforce Title X, The Residential Lead-based Paint HazardReduction Act of 1992.

A review of these regulations follows:

Sellers, lessors or their agents must disclose the presence of known lead-based

paint and/or lead-based paint hazards. They must distribute a lead hazard pamphlet

and disclose any known information to the buyers or the buyer's agent concerning

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lead-based paint. They must also provide purchasers and lessees with copies of any

available records or reports pertaining to the presence of lead-based paint and/or lead-

based paint hazards.

There is a mutually agreeable 10-day period for a lead paint assessment before a

purchaser becomes obligated under the contract. During this time, the purchaser mayconduct a risk assessment or inspection for the presence of lead-based paint or related

hazards. The purchaser may agree to waive the assessment. Sale and lease contracts

must include specific disclosure and acknowledgment language.

Under this law, a real estate licensee generally will not be held liable for failure to

disclose to a prospective purchaser the presence of lead-based paint if the hazard was

known by the landlord or seller but not disclosed to the licensee.

Licensees who act on behalf of a purchaser or lessee and are paid exclusively by the

purchaser or lessee are not required to comply with these procedures.However, a selling agent who is working with a buyer is required to comply with

the requirement for placing a clause in the contract and giving the buyer 10 days

to inspect the property, if the selling agent is preparing the contract. Civil penalties

for noncompliance range up to $10,000 and may include imprisonment for repeat

offenders.

The Residential Lead-based Paint Hazard Reduction Act of 1992 applies to what is

known as "target properties." In addition to sole owners of single-family residential

property, sellers of target housing include partnerships, individuals or entities that

transfer leasehold interests.

In the transfer of individual cooperative apartments, both the tenant-shareholder and the

cooperative corporation are required to comply with Title X.

Mold

Mold grows as a result of trapped moisture. This is why outdoor climates have little

to do with mold growth. Indoor mold can be one of the most insidious and potentially

devastating environmental risks we face. Mold can wreak havoc with every part of thebody, and mind as well. Many symptoms of ill health, both physical and mental, can

result from ongoing exposure to high levels of harmful molds growing indoors.

Addressing mold problems in real estate transactions is made difficult because there

are no industry or governmental standards defining what types or levels of mold are

excessively toxic, what remediation is acceptable, or how the remediation is to be

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performed and by whom.

Molds are fungi, neither animals nor plants, and are classified in a kingdom of their

own. Fungi also include yeasts, mushrooms, and puffballs. Fungi reproduce by making

spores. These spores are microscopic in size and waft through indoor and outdoor air

continually. Spores may travel in several ways - they may be passively moved (by abreeze or water drop), mechanically disturbed by a person or animal passing by, or

actively discharged by the mold (usually under moist conditions or high humidity).

When fungi spores land on a damp spot indoors, they may begin growing and digesting

whatever they are growing on. They can grow on virtually any organic substance,

provided moisture and oxygen are present.

OSHA estimates that there are anywhere from tens of thousands to over 300,000

species of mold.

Mold Awareness

● Most types of mold are not hazardous to healthy individuals.

● Toxic mold can cause allergies, asthma, rashes, and other respiratory complaints.

● There is no practical way to eliminate all molds and spores indoors.

● If mold is a problem, clean it up and eliminate sources of moisture.

● Fix all water leaks to prevent mold growth.

● Reduce indoor humidity to 30-60% to prevent mold growth

● Clean and dry any damp or wet building materials and furnishings within 24-48hours to prevent mold growth.

● Clean mold off hard surfaces with water and detergent. Absorbent materials like

ceiling tiles, plasterboard or wood may need replacing.

● Prevent condensation on windows, pipes, exterior walls, roofs or floors by adding

insulation.

● Do not install carpeting in areas where there is a moisture problem.

● Keep in mind that molds can grow on any surface (i.e., wood, paper, carpet and

foods).

If you, as a real estate professional, suspect microbial contamination in a home clients

are considering buying or selling, refrain from referring clients to a specific companyfor inspection or cleanup. It may be a little inconvenient, but it could prevent your

being named in a negligent referral suit. Home inspectors performing mold tests and

remediation companies may not carry insurance for such testing and remediation. This

could leave you vulnerable. If you have been referring clients to companies that offer

low cost procedures for inspectors to test for mold or remediation, you may want to

reconsider your position.

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Toxic mold

Toxic mold is an increasingly important issue for real estate professionals, and here are

the reasons:

●Modern energy-efficient building practices provide a conducive environment for mold growth.

● Public awareness has grown on the topic of toxic mold.

● Litigation activity regarding toxic mold has increased, after several multi-million

dollar judgments have been rendered.

Molds are a woolly growth on damp or decaying organic material found everywhere,

indoors and out. Most molds are harmless, but under certain circumstances, some

varieties are known to produce potent toxins. There may be hundreds of thousands of

types of mold, but only a few dozen are toxic and can cause health problems. Toxicmolds produce chemicals called mycotoxins that can cause rashes, seizures, unusual

bleeding, respiratory problems and severe fatigue in some people.

Toxic mold is not the dark scum often found around the bathtub. Instead, it can grow

unseen behind walls and on wood as a result of a water leak. Remember mold needs

two conditions to thrive - moisture and a food source. The places to check for mold are

damp areas resulting from a leaky roof, defective plumbing, and drainage problems.

Also check high humidity rooms, such as laundry rooms. Food sources for toxic mold

include certain types of insulation, wood and carpeting.

Because mold problems often start with slight indicators, you should be alert to red flagswhen conducting your visual inspections. The most common telltale signs of mold are

staining on walls and ceilings and a musty, mildew odor. Discoloration can range from

common water stains to the multicolored variety.

No one knows for sure why mold problems are on the rise. Scientists say it could be

due to modern construction methods. Newer houses have walls that contain cellulose,

where mold can thrive. Additionally, because homes today are more airtight, indoor air

quality is more likely to affect people's health.

To reduce toxic mold liability, consider the following points:

● During visual inspections, pay specific attention to stains or discolorations on

ceilings, walls, and baseboard areas to pick up red flags associated with plumbing

leaks and drainage problems.

● Pay attention to mold or mildew odors.

● If you notice signs of potential mold problems, carefully word a written disclosure.

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● Insist that potential buyers have their own, independent home inspections

conducted.

● Do not breathe in mold or mold spores.

● Be aware of the licensed experts in your area who are prepared to inspect for

mold. Know when to advise in writing that potential buyers hire one of those

experts. Some home inspectors are beginning to provide specific mold detection

and diagnostic services.

● As always, avoid recommending a particular vendor. Instead, give buyers a list of

vendors or simply direct them to the type of service they need.

● Consult a lawyer to determine whether a special mold disclosure disclaimer form

should be developed and signed by the transaction principals.

● Do not touch mold or moldy items with bare hands.

● Do not get mold or mold spores in your eyes.

Equipped with basic knowledge and using some simple litigation prevention strategies,

you will be better prepared to address this disclosure challenge effectively.

Be sure not to offer expert analysis, and avoid using terms such as black mold or

toxic mold. When describing the potential problem use terms such as mold type or

mildew-like. If necessary, recommend that your buyer clients retain a Certified Industrial

Hygienist (CIH) or other environmental specialist to provide mold detection and lab

analysis services.

Health effects and symptoms associated with mold exposure

When moisture problems occur and mold growth results, people may begin to report

odors and a variety of health problems such as headaches, breathing difficulties, skin

problems associated with mold exposure.

All molds have the potential to cause health effects. The types and severity of

symptoms depend, in part, on the types of mold present, the extent of an individual's

exposure, the ages of the individuals, and existing sensitivities. Specific allergic

reactions to mold growth can include sneezing, red eyes, rash, hypersensitivity

pneumonitis, increased sensitivity to mold over time, asthma, and even athlete's footand yeast infections.

Mold toxins are called mycotoxins. Some mycotoxins cling to the surface of mold

spores; others are found within spores. More than 200 mycotoxins have been identified

from common molds. For many mycotoxins, little information is available. However, it

is clear that humans need to avoid exposure to molds and mycotoxins. Some molds

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can produce several toxins, and some molds produce mycotoxins only under certain

environmental conditions. Remember that the presence of mold in a building does

not necessarily mean that mycotoxins are present or that they are present in large

quantities.

Hidden mold

In some cases, indoor mold growth may not be obvious. It is possible that mold is

growing on hidden surfaces, such as the back side of drywall, wallpaper, or paneling,

the top of ceiling tiles, the underside of carpet pads. Other possible locations for hidden

mold can include pipe chases and utility tunnels (with leaking or condensing pipes),

walls behind furniture (where condensation forms), condensate drain pans inside air

handling units, porous thermal or acoustic liners inside duct work, or roof materials

above ceiling tiles (due to roof leaks or insufficient insulation).Some building materials - such as drywall with vinyl wallpaper over it or wood paneling -

act as vapor barriers, trapping moisture underneath their surfaces and thereby providing

a moist environment where mold can grow.

You may suspect hidden mold if a building smells moldy even when you cannot see

the source, or if you know there has been water damage and building occupants are

reporting health problems. Investigating hidden mold problems may be difficult and will

require caution when the investigation involves disturbing potential sites of mold growth.

Make sure to use personal protective equipment such as gloves and masks. Even a

small act such as removal of a section of wallpaper can lead to a massive release of spores from mold growing on the underside of the paper.

If you believe there is a hidden mold problem in a property in a real estate transaction

you are handling, be sure to put your concerns in writing, advise all parties to the

transaction, and advise them to hire an experienced professional. If hidden mold is

discovered, the remediation plan must account for the total area affected by the mold

growth.

Do not run the HVAC (heating, ventilation and air conditioning) system if you suspect or

know that it is contaminated with mold.

The prudent real estate licensee should:

● gather and report as much background information as possible on the

improvements to the property, including furniture, fixtures, and equipment;

● limit professional opinions to those based on clearly documented background and

history, noting any discrepancies or insufficient information;

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● pay specific attention to water intrusion events, i.e., leaks, flooding;

● personally inspect or visit the property;

● document all possible locations, amount and appearance of mold or mold-

damaged property, including odors;

● leave the mold testing to the mold experts;

● limit contractual liability to costs of services provided;

● limit the time in which the aggrieved party may bring a legal claim;

● include mandatory or binding arbitration provisions in contracts;

● limit the scope of reliance on the report to a well-defined group of individuals;

● carefully document all factual information upon which your opinions are based;

● carry sufficient professional liability insurance; and

● NOT make conclusions about the presence of mold based on anything but

scientifically reliable testing. Just because it looks like mold or smells like mold,

it does not mean that it is mold. The only thing appearances are useful for is to

indicate the need for testing.Remember, although mold uses almost anything as a substrate or food source, mold

does not grow without water. Mold follows water, and water follows gravity.

Carbon Monoxide

Carbon monoxide poses a serious threat. According to national statistics from thecenters for disease control, carbon monoxide kills more than five hundred people andaccounts for an estimated twenty thousand emergency department visits annually.

Carbon monoxide is an invisible, odorless, colorless gas produced from the burning of fuels such as gasoline, natural gas, propane, oil, and wood. When carbon monoxide

is trapped in a residence, it can cause carbon monoxide poisoning, which, in the worst

case, is fatal, causing death within minutes. Many people who suffer carbon monoxide

poisoning do not recognize the cause of their illness until it is too late because carbon

monoxide poisoning can be confused with flu symptoms, food poisoning and other

illnesses.

Some symptoms include shortness of breath, nausea, dizziness, light headedness

or headaches. Some household sources of carbon monoxide include malfunctioning

furnaces, water heaters, ovens, stoves, gas dryers, improperly vented free standingheaters, clogged chimneys, corroded flu pipes, and generators.

Automobiles left running in an attached garage pose a hazard, even if the garage doors

are open. Carbon monoxide can pass through garage and apartment walls.

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It is a good idea for all homes to be equipped with carbon monoxide monitors,

regardless of whether the monitors are legally required or not.

Radon

The EPA estimates that one out of every 15 homes in the United States has radon

levels in excess of EPA guidelines, a level of 4 pCi/L (picocuries per liter) for indoor

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levels of radon. Radon is a colorless, tasteless and odorless gas that results from the

natural breakdown (radioactive decay) of uranium and radium in soil, water, and rock.

Almost every geographic area contains some amount of radium and uranium, the

sources of naturally occurring residential radon. Higher radon gas levels are found in

areas where there is greater concentration of uranium in soils.

In the United States, the highest concentration of uranium soils have been found in

areas of Pennsylvania, western New Jersey, Florida, most of New England, the eastern

slope of the Appalachians, the Georgia and Carolina coasts, and in scattered areas

of Wisconsin, Minnesota and west of the Rocky Mountains. Even within these high

concentration areas, it is not unusual for one house to have high levels of indoor radon

and the house next door to have negligible levels.

The two major sources of radon in most homes are the soil and the bedrock beneath

the soil. Radon enters a home from surrounding soil, through small spaces andopenings such as cracks in concrete, floor drains, sump pump openings, wall/floor joints

in basements and the pores in hollow block walls. Water from wells can also be an

important source of radon in some areas. If radon is in well water, it can be carried into

a home.

The most widely used method for reducing pollutants such as radon in water is to filter

the water through a bed of granular activated carbon (GAC). GAC removal works best

for moderate levels of radon in water. Aeration treatment, a more efficient method of

radon reduction, reduces the radon by agitating the water so that it releases the gas.

A third, less utilized method, is storage of the water long enough to allow the radon todecay naturally.

The soil composition under and around a house affects radon levels and the ease with

which radon enters a house. Normal pressure differences between the house and the

soil can create a slight vacuum in the house that can draw radon gas from the soil

into the building. Indoor air can have significant radon levels, depending primarily on

building construction and the amount of radon in the underlying soil. Outdoors, where

radon is diluted to low concentrations in the air, radon poses significantly less risk than

indoors.

Since radon entry points are not always visible, all homes should be tested; new homes,old homes, homes with or without basements, drafty homes, well-sealed homes and

even homes with radon-resistant features.

No level of radon is considered safe. There are risks at even very low levels, and the

EPA has determined that short-term exposure to a high level of radon is not as severe a

risk as long-term exposure at a lower level of the gas.

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Breathing radon does not cause immediate and noticeable health symptoms, but radon

is the leading cause of lung cancer deaths in nonsmokers and the second leading

cause of lung cancer deaths in smokers. Although radon is chemically inert and does

not react chemically with other elements or compounds, it does undergo radioactive

decay and produces "radon progeny" or "radon daughters." Unlike radon, these

progeny are electrically charged and chemically active. They can attach themselves to

air particles and when inhaled become lodged in the lung.

Trapped inside the lungs in close proximity to sterile lung tissue, radon progeny

continue to decay, giving off radiation that can weaken, chemically alter or damage the

lung. Lung cancer due to inhalation of radon decay products is the only known risk

associated with radon. The EPA believes that although any exposure to radon entails

some risk of lung cancer, not everyone who is exposed to radon will get lung cancer. It

typically takes many years for such cancer to develop, and risk factors vary from person

to person. Higher radon levels, longer exposures and smoking increase the odds of

getting lung cancer.

Testing the indoor air for radon is easy and affordable. About 30% of all radon tests

take place in conjunction with real estate transactions, and many lenders now require

radon testing. Most of these tests are of short-term duration, and when properly done,

can alert the buyer to high radon levels. Since these tests are used only for screening

purposes, the buyer should retest the house after the purchase, preferably with a long-

term test.

If the house has a radon reduction system in place, be sure to conduct a radon test to

be certain that the system is working properly. Also, ask to see the purchase agreementfor the system to determine how much of a warranty is left and whether it is transferable

to the new owner. You may need the services of a certified radon reduction contractor if

the radon test indicates levels greater than those recommended by the EPA.

The most tamperproof radon testing method for real estate transactions is the use of

sophisticated samplers called continuous monitors. A technician places a monitor in

the home to record radon levels continuously. A printout of the results can help the

technician spot unusual changes.

Motion detectors and proximity detectors can determine if the testing device has beenmoved, if test conditions have changed or if people are in the room when unusual radon

levels occur.

Another type of test involves using the continuous monitor to evaluate specific sources

of radon. During this test the technician samples air from different areas such as a sump

or opening between a basement and crawl space. This test is most useful for homes

with basements. The weakness of this test is that it cannot provide an average radon

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exposure level. Elevated radon levels are common when checking for sources, but that

does not mean high average radon levels.

If a new test is needed, advise the use of a certified radon tester. Make sure that the

testing guidelines for short-term tests are followed, and ask for a test that will detect

interferences and tampering. Anyone who sells or buys real estate should be alert tothe possibility of tampering with short-term radon tests. Sellers can attempt to lower the

radon concentrations by opening windows, sealing the samplers and other methods.

Buyers can protect themselves to some extent by asking for tamper resistant tapes on

alpha-track, electrets and charcoal samplers. Taping windows shut will also help ensure

closed-home conditions.

Radon in soil is drawn indoors by the differential between the relatively low air pressure

in the house and the higher air pressure outdoors. Therefore, radon reduction strategies

fall into two basic categories:

● those that keep radon from entering the home, and

● those that treat contaminated air indoors.

In most situations, the first strategy, that of preventing radon entry is the most effective.

The effectiveness and cost of any method depends on the characteristics of each

house, the level of radon present, the location and number of radon entry points, and

the skill and performance of the person who does the radon reduction work.

The following is a list of questions for real estate professionals to ask when checking for

possible radon pollution.

● Has the house been tested for radon● Is the floor of the crawl space exposed to soil or gravel

● Does the crawl space have return heating and cooling ducts

● Is there a sump that is not sealed or a dry well in the crawl space

● Are there openings for utilities or ducts that go from the crawl space into the

house

● Does the basement have any areas of exposed soil

● Does the basement have heating and cooling air ducts

● Do basement walls and floors have cracks or unsealed openings

●Does the basement have standard drains, without water traps● Does the basement have a chimney chase

● Is the basement damp or are there signs of recent water damage

Quiz for Unit 2

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Unit 3 In this unit we will be exploring the health concerns of asbestos and formaldehyde inthe home; the potential dangers lurking in groundwater and underground storage tanks;lastly the environmental impact of meth labs on real property.

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Unit objectives


● Summarize the major health effects of exposure to asbestos and formaldehyde● Identify methods of identifying groundwater contamination and dangers of UST’s● Discuss the associated health risks and dangers to the environment of meth

production

Asbestos

Asbestos is a mineral fiber that has been used commonly in a variety of buildingconstruction materials for insulation and as a fire-retardant . It is a health concern

because breathing the fibers damages the lungs and causes asbestosis, lung cancer and mesothelioma (a rare cancer of the lining of the lungs or the abdomen). Because itis a known environmental health hazard, asbestos has been discontinued in residentialconstruction since 1973.

There are still thousands of older homes that contain this potentially lethal material.Whether or not the asbestos-containing material is a health threat depends on thecondition and location of the material. The most common areas for this material to bepresent are in heating ducts and equipment and, in some instances, in acoustic ceilings,also known as cottage cheese ceilings. Since asbestos is a hazardous substance, its removal and disposal is quite costly.Because such costs may influence the purchase decision, both licensees and clientsneed to be aware of potential sources of asbestos.

Houses built before 1973 are likely to have the following types of asbestos-containingmaterials:

● insulation around heating pipes and furnaces;● plaster that is sprayed on or applied by trowel to wall or cottage cheese/popcorn

ceilings;● blown-in asbestos insulation inside the walls or attic;● vinyl floor tiles or linoleum and mastic adhesive; and● roofing felts and tiles.

Houses built between 1973 and 1985 could contain asbestos in caulking, putty, mastic,cement, vinyl wallpaper, siding and roofing shingles, felt, joint compound, plaster stucco, vinyl flooring and asbestos floor tiles.

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Always avoid sanding, scraping, sawing, cutting or drilling asbestos-containing materialsbecause these actions release asbestos fiber.

If you suspect the presence of asbestos in a home, contact your local health departmentor regional EPA asbestos office for assistance. Many departments offer testing

services and have knowledgeable staff members who can advise you of your options if asbestos is present. They may also provide you with a list of qualified laboratories andconsultants who can test for asbestos and correct problems.

A material that contains more than one percent asbestos by weight is considered to testpositive for asbestos. The question of who will test for asbestos-containing materialsis complex. In residential real estate transactions, home sellers are bound by law todisclose the presence of such materials. Unfortunately, many sellers are unaware of theproblem. It is also an unfortunate misconception that professional home inspectors willtest for the presence of asbestos. This is simply not the case.

Friable asbestos Friable asbestos is the type that can be crumbled into fine particles by hand pressure,can become airborne and can also easily be inhaled into the lungs. These particlescannot be seen by the naked eye. They are also the most dangerous form of asbestosas they can be inhaled through the nose or mouth.

Nonfriable asbestos

A second type of asbestos, nonfriable asbestos, such as that found in floor tiles, emitsfew fibers and is much less hazardous. Nonfriable asbestos can become a hazard if it isdisturbed by drilling, cutting or sanding.

Such asbestos-containing products in the home become a health risk when age,accidental damage or normal cleaning, construction or remodeling activities cause theasbestos-containing materials to crumble, flake or deteriorate. When this happens,minute asbestos fibers are released into the air.

Asbestos removal is a hazardous process that should be performed only by a qualifiedand reliable asbestos abatement contractor. The contractor is responsible for insuringthat asbestos dust is not dispersed in the process.

Air should be monitored for asbestos fibers during the removal process. Removedmaterials are a hazardous waste and the contractor is also responsible for disposal in asecure landfill approved by the EPA. The EPA no longer recommends removing all asbestos-containing materials. Somematerials can be managed in place by building an enclosure around them or bycovering the asbestos fibers with a sealant.

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As a real estate licensee you are not expected to possess the technical knowledgeneeded to confirm the presence of asbestos or to determine health hazards if asbestosis present. You are expected to be on the lookout for the possible existence of asbestosthat may be evident from a visual inspection.

What to do if you believe asbestos may be present: ● suggest further investigation;● use care to insure that the suspect material is not disturbed; and● inform parties to the transaction that you suspect or know asbestos is present.

Remember, information completed by the seller on the mandatory Real PropertyTransfer Seller Disclosure Statement does not necessarily release licensees fromliability associated with the property buyers.

Formaldehyde Urea-formaldehyde foam insulation (UFFI): It is hard to avoid formaldehyde, a respiratory irritant and carcinogen. It is a colorless,gaseous chemical compound that is generally present at low, variable concentrations inboth indoor and outdoor air.

Formaldehyde protects latex paints from mildew and inhibits wrinkles in permanent-press fabrics. It is also a key ingredient in many insulating foams, durable automotiveresins and glued-wood construction materials.

The use of formaldehyde compounds is fairly widespread in the manufacture of furniture, cabinets and flooring materials which subsequently release formaldehyde gasinto the air. The main source of formaldehyde is usually kitchen and bathroom cabinets.The vast majority of cabinets are manufactured wood products such as particle board,plywood, and medium density fiberboard produced with a potent urea-formaldehyderesin.

Since 1985, the federal government, through HUD, has enforced regulations thatsharply curtail the use of materials containing formaldehyde. Yet, while contractors havevoluntarily stopped using UFFI, the material is still present in many homes.

In some homes, the sub-flooring or walls may be the source of formaldehyde or thefoam insulation between the inner and outer walls may emit the gas. It is estimated thatformaldehyde-type insulation was installed in half a million homes in the U.S.

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Because of the tight quarters and the relatively large volume of pressed-wood productsused in their construction, prefabricated and mobile homes have historically beenplagued by elevated levels of formaldehyde. To remedy the problem, HUD passedregulations as early as 1985 requiring that all plywood and particle board used in theconstruction of such homes meet special formaldehyde emissions limits.

Higher than normal levels of formaldehyde in the home can trigger attacks in individualswho suffer from asthma. Other health hazards attributed to formaldehyde include skinrashes, watery eyes, burning sensations in the eyes, throat and nasal passages, andbreathing difficulties.

Some individuals experience a reduced tolerance to formaldehyde following their initialexposure to the gas. In these instances, subsequent exposures to very small amountsof formaldehyde will cause reactions.

If you suspect the presence of UFFI, you can recommend testing of the indoor air.

Inform the seller of the need to consult the appropriate health authorities or other experts. Removal of gas-emitting insulation material may also be necessary.

Groundwater

Groundwater is defined as the supply of fresh water under the earth's surface,regardless of the geological structure in which it is standing or moving. It is normallyconsidered fresher than rainwater because rainwater rinses pollutants from the air andis contaminated. Groundwater does not include water flowing in underground streamswith identifiable beds and banks.

Groundwater sources are the principal water supply for many U.S. residences, fromeither on-site wells or private water companies. Contamination may occur when thedrinking water supply is subject to irrigation, industrial purposes, waste disposal or other potential contaminants. Cleanup of contaminated groundwater is difficult, and is alwaysbeyond the economic reach of individual property owners.

Upon visual inspection of a property, you may see evidence pointing to sources of groundwater contamination. Typical sources of groundwater contamination include:

● leaky underground storage tanks;● faulty septic systems;● underground pipelines;● hazardous and non-hazardous landfills;● runoff from agricultural pesticides and fertilizers; and● mining activity.

Also familiarize yourself with the area surrounding the property and maintain anawareness of reports of groundwater contamination from common sources such as:

● commercial establishments;

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● gasoline stations;● widespread use of pesticides or fertilizer; and● industrial parks

If you believe that there may be a groundwater problem, consult the local or county

health department for information about well water quality and talk with the neighbors tosee what their experiences with the water supply have been.

If you suspect a problem exists, tell the seller and explain that any known or suspectproblem must be disclosed to prospective buyers. Recommend testing by an expert, asthis is the only sure way to determine whether groundwater is contaminated.

Most important of all, put your concerns in writing and have them initialed by all partiesto any real estate transaction.

Underground storage tanks The presence of underground storage tanks on a property can represent a seriouspotential liability, because leaking storage tanks pose severe contamination problemsfor both soil and water supplies. The EPA estimates that there are between five and sixmillion commercial and residential underground storage tanks currently in use.

There are also significant numbers of abandoned tanks and only a small percentage areprotected against corrosion. The EPA estimates that as many as 25% of the tanks arecurrently leaking, and the number continues to rise.

An underground storage tank is simply a tank and its piping that are placed either partially (at least 10%) or completely underground. USTs were buried to reducethe potential for fires, explosions and human contact with hazardous chemicals.Most contain gasoline, diesel fuel or heating oil. These petroleum products containcarcinogens, such as benzene and other toxic compounds. The EPA's updated regulations require registration and inspection of the tanks,corrosion protection, spill and overflow prevention, leak detection, and removal andclean up when leaks occur. Even older tanks, those installed before 1988, must meetprovisions for corrosion protection, spill and overflow prevention and leak detection.

As a real estate licensee performing a physical examination of the property, you need tobe able to recognize clues to possible USTs:

● Such tanks may have an air vent that sticks out of the ground above the tank.● Oil sheens in wet areas and traces of concrete, metal or asphalt may indicate

former commercial use.

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● Signs of rust may be the result of a corroding steel tank.● If you suspect there is a problem, consult with the seller, and local and state

officials to determine whether underground storage tanks are present.● Inform your client of any discoveries.● Document your concerns and the resulting information

If there is any possibility that there are leaking tanks, recommend professional testing.The most common testing methods for leaking underground storage tanks are:

● Soil Borings. This is the testing method most often recommended byenvironmental professionals for a real estate transaction.

● Tank Integrity. This test is used for the semi-annual testing of gas station tanks

and is not recommended for a real estate transaction because inaccuratereadings may result due to temperature, air pressure, groundwater fluctuation andoperator error.

● Soil Vapor. In this test, small holes are drilled near the tank and a probe isinserted. An air sample is then checked for petroleum content. Results are limitedin application to overall pollutants.

Some USTs are exempted from EPA rules. These include:

● farm and residential tanks holding 1,100 gallons or less of motor fuel for noncommercial purposes;

● tanks on or above the floor of underground areas such as basements or tunnels;● home heating oil tanks;● tanks holding 110 gallons of fluid or less;● septic tanks; and● systems for collecting storm water and wastewater.

The movement of chemicals from a UST to the inside of a home through openings inthe basement or slab foundation can also present problems. Not only are the chemicalstoxic when inhaled, they pose a potential explosion hazard if the concentrations build upin the home. If your client is considering buying a home that has an underground storage tank,recommend hiring a professional environmental consultant to check for leaks and toevaluate the condition of the tank, even if the tank is no longer used. An old tank maycontain residual fuels that could leak from the tank as it ages and corrodes. Cleaning up leaks is expensive. Costs range from thousands of dollars for smaller leaksfrom residential tanks, to millions of dollars for leaks from commercial tanks.

The environmental dangers a meth lab presents to real property.

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Meth is a highly addictive drug linked to causing many health problems both acute andlife threatening as well as death. The risk of injury from chemical exposure dependson the chemical itself, the concentration, quantity, and length and route of exposure.Chemicals may enter the body by being breathed, eaten, injected (by a contaminatedneedle or accidental skin prick), or absorbed by the skin.

An acute chemical exposure is one that occurs over a relatively short period of timeand may result in health effects. This could occur during or immediately after a drugbust, before the lab has been ventilated. Acute exposure to high levels of contaminantsfound in meth labs can cause shortness of breath, cough, chest pain, dizziness, lack of coordination, chemical irritation, burns to the skin, eyes, mouth and nose, and in severecases death.

Users aren't the only ones who are affected. Meth labs regularly blow up in ordinaryneighborhoods, damaging ordinary people who may not even know what meth is. Thereare also numerous meth-related crimes that occur which aren't limited to just the users

and manufacturers of meth. The truth is you don't necessarily have to be involved withmeth to feel its effects.

Approximately 30 to 40 percent of the supply is made in hidden labs, usually in ruralareas, but it can be made anywhere. Meth labs can be dangerous because people,often under the influence of the drug, are handling a variety of potentially explosivechemicals. Many labs are in residential homes with children present. As a result theselittle ones are exposed to the toxics created in the manufacturing of the drug as well asthe dangers presented by the users. Clandestine labs are known as "mom and pop" labs or "box labs" - due to their portability. These type labs are found in:

● rural, city and suburban residences;● barns;● garages and other outbuildings;● back rooms of businesses;● apartments;● hotel and motel rooms;● storage facilities and vacant buildings;● trunks of cars;● RVs; or ● on someone’s back in a backpack

Fires and explosions are commonplace. Making any quantity of meth produces at leastfive times that amount in toxic wastes that are routinely dumped into the environment.These dangerous wastes contaminate septic tanks, drain fields, soils and surfacewaters.

40




Manufacturing meth produces 5 to 7 pounds of toxic waste for every pound of meth. Waste products from meth include compounds like sodium hydroxide and redphosphorus. Both are very dangerous and can cause fires and explosions for over 10years after being discarded.

Chlorinated solvents and other toxic byproducts used to make meth pose long-termhazards because they can persist in soil and groundwater for years. Clean-up costs areexorbitant because solvent-contaminated soil may have to be incinerated. Abandonedor vacant properties are sites sometimes chosen for clandestine labs. This not onlyendangers the immediate neighborhood, but also brings down property values andinvites crime into the neighborhood.

One should not enter a building that has been used as an illegal methamphetaminedrug lab without appropriate personal protective equipment, unless the area has beenventilated and decontaminated. The decision to rent, purchase or otherwise occupya house or dwelling which has been used as a drug lab should be made with the

knowledge that no decontamination procedure can guarantee absolute safety for re-occupancy.

A house or dwelling which has been used as an illegal drug lab should never be sold,rented or otherwise occupied until the property has been decontaminated according tothe best available technology. However, even after decontamination, small amounts of contaminants can remain on floors, walls, counters, carpets, furniture, sinks, drains andventilation systems. Exposure to even small amounts of some of these chemicals canpose serious health risks.

How to recognize a meth lab Here are some things to look for if you suspect a building is being or has been used asa meth lab:

● Chemical smells like ether, ammonia, acetone or cat urine; fumes are toxic andcan cause itching and burning of eyes, throat and lungs.

● Heavy traffic during late night hours; an increased number of people coming and

going from the labs at unusual times. Traffic activity typically increases at night.

● Covered windows and reinforced doors; cooks often black out the windows of homes, with either towels, blankets or aluminum foil. There is usually a 55-gallonbarrel used to burn debris created in meth cooking.

● Occupants smoking outside due to possible explosive gases inside.

Most meth houses also have debris in the yard, including:

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● antifreeze jugs,● metal cans with holes in the bottom or holes removed, or ● "sludge” the byproduct from meth cooking sitting in glass bottles or jars.● discarded containers,

● empty ephedrine bottles,● stained coffee filters,● lithium batteries,● Freon and starter fluid containers;● camp stove and lantern fuel cans;● duct tape; clear glass containers; and hot plates;● propane cylinders

Never touch or use a discarded propane tank. They are often used by methproducers to store anhydrous ammonia. The cylinders can take many forms,from modified propane tanks to fire extinguishers, scuba tanks and soda

dispensers. The tanks contain anhydrous ammonia or hydrochloric acid bothhighly poisonous and corrosive.

Anhydrous Ammonia Anhydrous is the Greek word for 'without water.'

Anhydrous ammonia expands into a gas as it is injected into the soil whereit rapidly combines with soil moisture. More anhydrous ammonia is used asfertilizer than any other nitrogen fertilizer source. Anhydrous ammonia isclassified as a hazardous substance. Protective equipment is required by law tobe available where anhydrous ammonia is handled or applied.

Solvents and chemicals include and are not limited to:

● Freon and starter fluid● benzene (found in gasoline and other fuels);● phenyl-2-propane (used as a starting material or intermediate, known as P2P);● red phosphorous (enables matches to strike);● phenylpropanolamine (nasal decongestant and weight control product);● acetone;● ether;● black Iodine● hexane (a cleaning agent);● methanol (wood alcohol);● toluene (paint thinner);● trichloroethane (methyl chloroform);● white gasoline (camp stove and lantern fuel);

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● xylene. (Used as a solvent for gums, resins, and rubber cleaners anddegreasers, paints, lacquers, and varnishes, adhesives, cements, and epoxyresins, inks and dyes, aviation gasoline. Considered hazardous);

● phenyl acetone Iodine crystals● lye (Red Devil Lye)

● Heet (gas-line antifreeze)● muriatic/hydrochloric acid (A corrosive liquid used for cleaning and etching stone,brick, concrete, slate, etc.

● Epsom Salt● sodium metal (wooden matches)● sulfuric acid (drain cleaner).● battery acid/sulfuric acid● cold tablets● bronchodilators● energy boosters● rock salt

Potential health effects Health effects caused by exposure to meth lab chemicals depend on the followingfactors:

● lab process and chemicals used;● the amount of chemical and length of exposure; and● the age and health of the person being exposed.

Meth recipes may include combinations of volatile organic compounds (VOCs), acids,bases, metals, solvents and salts. Making meth with these dangerous chemicals canresult in explosions, chemical fires, and the release of toxic gases. Meth cooking also produces solid and liquid wastes that can contaminate a building andits contents, the air, and the groundwater or soil where they are dumped.

A cold-cooking methamphetamine method uses lithium batteries, commonly used incameras. A chemical reaction creates heat, which is necessary to separate finishedproduct from the "sludge," or intermediate ingredients.

Firefighters know that they should not put water on a fire started by a cold-cook methlab, because water when mixed with lithium causes an explosion. This is one way methcooks/users cause explosions.

Identifying a possible meth lab

As a result of "cooking," different chemicals may contaminate carpeting, wallboard,ceiling tile, or fabrics by absorption as well as furniture and draperies. If meth residues

43




enter a heating or A/C ventilation system, other areas in a building will becomecontaminated. Soil or groundwater may become contaminated if chemicals are dumpedin a septic system or on the ground.

Telltale signs include: ● carpets often feel spongy in clandestine meth labs;● ceilings, walls and surfaces may be streaked with brown stains;● metal may be corroded; and● anything brass turns a bright blue.

If something looks unusual, you should quickly exit. Don't step on discolored groundwhere nothing grows, as it might be a chemical dump. Some rural dump areas have hadas many as 15 acres of land affected by meth waste dumping.

If you suspect that meth is being cooked on your property, call law enforcementimmediately, so they can control the emergency. Get away and stay upwind!

Don't …

● Don't disconnect the electricity to the site. Interruption of electricity causes achange in the chemical composition and reactions necessary to get the finishedproduct. In the case of meth labs, they explode!

● Don't smoke. Lighting up or smoking can ignite an explosive reaction.

● Don't touch contaminated areas. Contaminated areas if touched can cross

contaminate other areas and endanger more people and places. What you'redealing with is a volatile, vaporous gas. Vapors collect in low places. Don't go low!

● Don't eat, drink, or wipe your sleeve across your face. To do so increases your

own risk of absorbing dangerous chemicals into your body.

When former labs are not thoroughly cleaned, the health of future residents may beharmed by chemicals left behind on walls and surfaces, and in plumbing or heatingfixtures. Professional testing and cleaning of former lab sites are recommended. Insome states professional cleanup is mandated by law. Cleaning up and decontamination after a meth lab has been detected is no smallchore. As a measured precaution those inspecting the site are strongly advised to wear protective and/or disposable clothing/gear to avoid contaminating areas outside of thesite, their personal property and themselves during/following inspection as well as atclean up.

Unit 3 Quiz

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Unit 4 - Healthy Homes Lesson objectives Upon completion of this lesson the student will be able to:

● Elaborate on the qualities of a healthy home and the causes of poor indoor air ● List and explain the various programs available for healthy, green homes

As a real estate professional, you are obviously not responsible for the indoor air inhomes that your clients buy or sell. However, you will work with clients who have healthproblems, and with clients who are concerned about the home they buy being "healthy."For you to understand common kinds of indoor air problems and how they areexacerbated or controlled is good marketing sense.

What is a healthy home?

A healthy home generally means that you have clean air, clean water, and proper daylighting to deter mold growth. Opinions and approaches vary, but an increasingly reliable gauge for achieving ahealthier indoor environment in new homes can be found in the mission and guidelinesof the Health House program managed by the American Lung Association. Many of theprogram's standards and specifications cross over into what can be considered "greenbuilding" practices and/or methods for achieving better energy efficiency.

The fact is that an energy efficient home improves air quality and a tighter homegives the homeowner more control over the indoor environment. It allows you to filter,ventilate, and control moisture and other pollutant sources. Even when the focus is noton indoor air, but rather on resource efficiency or materials conservation, the issue of health still plays a role.

Energy efficient homes are in demand because of the impacts on health andpocketbooks. Indoor air quality is in demand because "green" builders are doing a great

job educating buyers and having an impact on the market whether they sell a home or not.

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http://www.healthhouse.org/









The American Lung Association estimates that Americans spend an average of 65% of their time indoors at home or at work, and that one in three families suffer from allergies.

The role of the homeowner There's no doubt that homeowners have a responsibility for maintaining a healthy homeenvironment, from designing with no VOC-emitting furniture to not smoking indoors. Builders share that responsibility, at least in terms of educating their buyers abouttheir role after move-in. The new owner must know how to maintain the house, howthe various systems work, and how to manage moisture. Consumers also need tounderstand the sources of indoor air pollution as we have discussed in the previousthree units.

How much does it cost? Builders who take a systems approach to the design and construction of a healthyhouse say that it costs nothing extra to build. The trick is to balance energy and indoor air quality upgrades with savings in framing materials and downsized HVAC (heating,ventilation and air conditioning) equipment, among other efficiencies. Builders now have the ability to substitute environmentally superior products andmaterials that cost the same and are just as easy to get through the mainstreambuilding supply chain. Green builders are also aggressive recyclers and often divert asmuch as 50% of construction waste from landfills.

"Green" homes meet the requirements of the EPA Energy Star Program and includesuch materials as:

● hardboard siding of cement and wood fiber;● planks made from recycled wood fibers and plastic grocery bags for durable

decks;● double pane, Low-E windows;● carpet made from recycled pop bottles; and● paints with low volatile organic compounds (VOC).

Quality of indoor environments The links between furnishings and decorating materials and the quality of indoor environments are as strong as their links to the global environment. In the industrialized

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http://www.energystar.gov/

http://www.efficientwindows.org/lowe.cfm

http://www.epa.gov/iaq/base/voc_master_list.html



















world we can spend as much as 90% of our time indoors, so the importance of ahealthy indoor environment cannot be overestimated. Yet the quality of indoor air canbe ten times worse than that of outside air, even in urban areas.

The EPA considers indoor air quality one of the greatest single factors contributing

to ill health. Studies of indoor environments suggest that many modern materials andchemicals contribute to environmentally-induced illnesses. We now know that dozens of potentially harmful chemicals in our homes can be up to 1,600 times more potent whencombined. Indoor environments include workplaces, schools, offices, apartment buildings andvehicles, as well as homes. Indoor air problems are also adversely affecting our children's health as millions of homes and apartments and one in five schools in America have indoor air qualityproblems. This can trigger various allergies and asthma.

Asthma alone accounts for 14 million missed school days each year. The rate of asthmain young children has risen by 160% in the past 15 years, and today one out of every 13school-age children has asthma. Certainly building "green" houses can help alleviate problems with indoor air problemsas well as help the United States control use of resources such as wood and energy ata sustainable level.

Without a bad smell to alert us, we usually are unaware of poor indoor air quality. Thatdoes not mean pollutants are not present. Modern building and decorating materialshave a complex mixture of chemical ingredients. Some potential dangers include:

● cleaning materials, cosmetics and garden pesticides;

● carpets glued with solvents that are treated with fungicides and contain residualparticles;

● fabrics treated with chlorine, benzene, and/or formaldehyde;

● plywood and particleboard, which contain formaldehyde, urea and other

dangerous glues;

● paints and stains which contain fungicides, volatile organic compounds (VOCs)and other chemicals; and

● vinyl flooring, furniture and plastics that contain VOCs such as bromines and

chlorine.

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New materials have radically altered our home environment and our bodies areill-equipped to cope with the impact of all these new chemicals, many of whichgive off pollutants. The longer people are exposed to these stresses, and the lesssound their immune systems, the greater the likelihood of becoming ill. The best

example of the problem is the alarming growth of illnesses such as asthma, allergicreactions, respiratory ailments and cancers not present to the same extent in previousgenerations. Many materials used in home construction since World War II were developed for inexpensive, quickly built mass housing. They were developed by the petrochemicalindustry. What was not understood at the time was that any of these materials releasechemicals into the air; a process called off-gassing.

Since the 1970s we have been trying to conserve energy, with two consequences.First, energy consumption was reduced by increasing insulation in buildings, using

mainly petrochemical products such as foamed polymeric insulation materials. Thiswas coupled with a drive to seal houses tightly and prevent the loss of all the warm air that we heat with such high energy costs. Fireplaces and drafty nooks and crannieswere blocked up, eliminating ventilation. This seals in not only human-generated germs,toxins, and moisture, but also the vast number of chemicals vaporized and off-gassedinto the home's now unchanging air.

Indoor air, stagnant for longer periods, spirals down in quality. So-called advancedbuilding technology has created home environments with previously unknown dangers,and it has taken a half century for these problems to be fully appreciated.

Causes of poor indoor air quality Poor indoor air has four main causes:

● offgassing of chemicals;● particulates;● combustion gases; and● electromagnetic radiation.

Each of these causes can trigger a variety of physiological reactions such as eye, noseand throat irritations, congestion, fatigue, headaches, respiratory disorders and allergicreactions.

● Offgassing (or outgassing) from materials is the slow release into the atmosphere,similar to evaporation, of chemicals that vaporize either from the material itself or from chemical residues used in manufacturing processes. Chemicals commonlyemitted into the atmosphere in this way include the dangerous group known asVOCs (volatile organic compounds) and many other petrochemical derivativessuch as benzine, naphtha, formaldehyde, organochlorines, phenols, and the

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http://www.natureneutral.com/learnOff.php

http://www.epa.gov/pm/

http://www.epa.gov/iaq/combust.html

http://www.who.int/peh-emf/about/WhatisEMF/en/

http://www.chemicalbodyburden.org/cs_organochl.htm

http://www.chemicalbodyburden.org/cs_organochl.htm

http://www.who.int/peh-emf/about/WhatisEMF/en/




http://www.epa.gov/pm/

http://www.natureneutral.com/learnOff.php




organophosphates contained in items made of PVC (polyvinyl chloride).

The chemicals may be naturally unstable or may be released through aging or by the effect of light, moisture, or abrasion. Toxic metals such as lead, mercury,cadmium, and zinc also offgas and they can cause severe contamination when

they are in contact with water or other particulates.Materials commonly used in our homes that contain these chemicals includeplywood, particleboard, insulation, carpeting, vinyl flooring adhesives, paints andfabrics.

Particulate and biological contaminants are an important element of poor air quality. All atmospheres contain very fine, invisible airborne particles, most oftenincluding general household dust, animal hair and dander, microorganisms,pollens and mold spores, as well as smoke and asbestos. Molds in particular canbe poisonous. Particulates can trigger a range of reactions in the immune system,including eczema, hay fever and the restriction of breathing passages (which

causes asthma and respiratory problems). The World Health Organization maintains that the threshold below which particulatesare safe is so low as to be barely measurable.

Combustion gases can be emitted by old faulty or badly maintained heatingsystems. Furnaces and water heaters that only partially burn their fuels emitgaseous residues such as nitrogen oxide, carbon monoxide, and sulfur dioxideinto the air. These gases are poisonous. Carbon monoxide in the home cankill and it leads to a large number of symptoms often assumed to be the flu.Research has shown that carbon monoxide can impair cognitive functions andhas also been linked to lung disease.

Electromagnetic fields are perhaps the most contentious of domestic hazards.Electricity and electrical installations surround us everywhere in increasingnumbers, and there is growing concern that these fields upset many of the body'sfinely balanced natural electrochemical functions.

There are two kinds of radiation: low frequency electrical fields emitted fromelectrical cables and equipment, and the magnetic fields emitted from allappliances and equipment (which are considered the most dangerous).

The best way to ensure indoor air quality is to ventilate with constant fresh air.

Energy efficient homes

As we have looked at the newer "green built" homes, one recommendation jumps out;the emerging market is for energy efficient homes as part of the move to a healthier environment outside, as well as inside. Some states are requiring the builder or seller of

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http://emedicine.medscape.com/article/167726-overview

http://emedicine.medscape.com/article/167726-overview




a new, previously unoccupied home to provide the buyer a completed Energy EfficiencyDisclosure form. The form will tell the buyer either:

● the home is in compliance with the energy codes for the area; or ● the energy performance level achieved by each home component.

It's important for the real estate professional to understand the energy performancelevel currently recommended for each component of a house, in order to help clientsmake the best decision buying a home which will cost less in terms of energy use.

At the very least, this information can help the licensee assist his/her client in avoidingcostly, perhaps even unaffordable, energy bills.

Energy Conservation Code 2012 International Energy Conservation Code (IECC) establishes minimum levels of energy

performance for new residential construction. The IECC is the energy code most oftenadopted by local units of government. The IECC allows several methods of compliance. The simplest method prescribes:

● minimum R-values for walls, ceilings, and floors;● maximum U-values for windows and doors; and● minimum performance for heating and cooling equipment.

● R-values are a measure of resistance to heat flow through materials. The higher

the R-value, the greater the insulating value.

● U-values are a measure of heat conductance. U-value is used to rate doors andwindows. The lower the U-value, the greater the insulation value.

Another compliance option allows trade-offs where higher performance by onecomponent will offset lower performance by another. For example, higher performancewindows would allow lower levels of wall insulation. All homes must meet basicrequirements like air sealing, duct construction and insulation, and vapor barriers. Minimum recommendations provide an acceptable level of performance and correspondto prescriptive recommendations from the IECC. "Better" column values provideadditional savings and should be considered, especially where energy prices are higher.The "Better" recommendations generally correspond to Energy Star performance levels.

A home energy rating system (HERS) allows homebuyers to compare estimatedenergy costs for homes they are considering, as well as evaluate savings fromenergy improvements. The HERS assigns a home a point score between 1 and 100,depending on certain characteristics such as insulation levels, heating and coolingefficiency, window placement, and orientation of the home. The buyer can compare theperformance of several homes or evaluate the benefit of efficiency features during the

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http://www.ncsl.org/issues-research/energyhome/state-energy-efficiency-action-update.aspx


http://www.greenbuildingadvisor.com/blogs/dept/musings/overview-2012-energy-code

http://resnet.us/energy-ratings

























design stage. Energy Star labeled homes are designed to use 30% less energy than those built tothe minimum standards of the IECC. Higher levels of insulation, better windows, moreefficient heating and cooling equipment, and comprehensive air and duct sealing all

contribute to the higher performance.

To be labeled as Energy Star, homes must undergo a third-party evaluation of their energy efficiency, including a blower door evaluation of the envelope and ducts. Homesmust have a home energy rating of at least 86 or be built to meet climate-dependentconstruction specifications in order to be labeled Energy Star. Energy efficient homesconsist of quality components installed and operated in a manner to minimize energyuse while providing high comfort levels.

Plans must detail installation requirements, and construction crews must executequality work to assure air sealing, airtight duct and return-air systems, continuous

vapor retarders, and appropriate controls. Setback thermostats are recommended for conventional heating and cooling systems, as are special ramp-up thermostats for heatpump applications.

House orientation, window placement, overhang design, landscaping, and tree plantingalso affect long-term energy use, as does equipment maintenance.

Equipment performance ratings There are ratings in place for all major energy using equipment in the home. For eachperformance rating, the higher the number, the more efficient the equipment. Better performance ratings are often cost-effective, especially where energy costs are mediumor high. The following are examples of performance ratings in heating/cooling equipment:

● Annual Fuel Utilization Efficiency (AFUE) --- used to rate gas or propane warm-air furnaces and small boilers.

● Seasonal Energy Efficiency Ratio (SEER) --- performance indicator for residential

central air conditioners. ● Heating Seasonal Performance Factor (HSPF) --- measures performance of air-

source heat pumps.

● Energy Efficiency Ratio (EER) --- used to rate window air conditioners andground-source heat pumps.

For a new home, the cost of better windows, a more efficient furnace, and higher levelsof insulation will be included in the home mortgage.

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http://www.energystar.gov/index.cfm?pgw_code=TH&resultsPerPage=50&message_id=fap%5Fval%5Finvalid%5Fpgw%5Fcode&fuseaction=FIND_A_PRODUCT.showFAPHome#pt

http://www.furnacecompare.com/faq/definitions/afue.html

http://www.acdoctor.com/get-educated/be-efficient/whats-a-seer/

http://www.furnacecompare.com/faq/definitions/hspf.html

http://saveenergy.about.com/od/understandingenergy/g/EER_DEF.htm

































The measure of cost-effectiveness for these upgrades should be: "Will combinedmortgage and utility payments be less with the energy efficient upgrades? If the answer is YES, then the upgrades are cost effective.

EPA Energy Star estimates an average home built to meet Energy Star criteria will

save $25 per month on utility costs, which will pay for an additional $6,780 in energyupgrades with an eight percent mortgage. Costs and energy savings vary by area.

Many states rely on some form of the U.S. Department of Energy's Model EnergyCode (MEC) as a starting point for defining a green home. This code contains energyefficiency criteria for new residential and commercial buildings and for additions toexisting buildings. It also describes how ceilings, walls, floors, foundations, lighting andpower systems must be constructed to meet its energy conservation standards.

How energy efficient mortgages work Houses that meet prescribed energy standards can qualify for favorable mortgageterms, ranging from higher borrowing limits to cash-back features. They can be used topurchase a new or existing home, or to finance energy-related improvements. The FHA, VA, Fannie Mae and Freddie Mac all sponsor energy efficient mortgages (EEMs) for homes that are certified as energy efficient by an accredited energy ratingsystem or independent consultant. These mortgages allow consumers to buy morehome, either through a traditional 2% stretch, which adds energy savings to income toqualify buyers for 2% more debt, or through flexible loan-to-value ratios of up to 100%of the home's value. There are standard EEMs with no upper income restrictions, andsome for borrowers who are at or below 100% of area median income.

Energy improvement mortgages allow buyers of older homes to roll the costs of makingenergy improvements right into the mortgage. An energy rater inspects the property andrecommends cost-effective improvements, perhaps replacing electric baseboards with aforced air gas furnace or older aluminum single-pane windows with vinyl.

The lender places the money for those improvements into an escrow account, andwhen the improvements are made, another energy rating is taken. If the work wasperformed satisfactorily, the funds are released to pay for the work.

Energy mortgages are a great benefit to all parties in a transaction. Buyers can affordthe house they want, sellers have a desirable feature to market in their property, andagents can earn higher commissions because they are selling more expensive homes. If you're interested in helping buyers qualify for green mortgages, get to know the greenlenders in your area. The list of participating lenders in each state is available from theResidential Services Network.

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http://www.energycodes.gov/development/green/codes


http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/energy-r

http://www.resnet.us/































As a real estate professional you are in the position to safeguard the health and well-being of your clients, the local and the global community. By serving as a resourcefor connecting buyers, sellers and experts, you can protect the quality of life that we

Americans enjoy and move toward ensuring that it is not at the expense of those less

fortunate. You can also use your knowledge of the area and its resources to influencedecisions in community planning and resource sustainability.

Quiz 4

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