Real Estate Fundamentals - Chapter 3: Environmental Concerns and Hazards

1. In 1978 lead-based paint was banned from use in painting homes. Under the 1996 federal law, known as the Residential Lead- Based Hazard Reduction Act, the Agreement of Sale must include the provision to disclose any known information about existing lead paint to the purchaser, as well as give to the purchaser a lead hazard brochure.

True

False

The statement is true because in 1978, lead-based paint was indeed banned from use in painting homes. The Residential Lead-Based Hazard Reduction Act, passed in 1996, requires that the Agreement of Sale includes a provision to disclose any known information about existing lead paint to the purchaser. Additionally, the law also mandates that the seller must provide the purchaser with a lead hazard brochure. Therefore, the statement is correct.

Explanation

The statement is true because in 1978, lead-based paint was indeed banned from use in painting homes. The Residential Lead-Based Hazard Reduction Act, passed in 1996, requires that the Agreement of Sale includes a provision to disclose any known information about existing lead paint to the purchaser. Additionally, the law also mandates that the seller must provide the purchaser with a lead hazard brochure. Therefore, the statement is correct.

2. Carbon monoxide gas can cut off the supply of oxygen and cause death in as short a time as one half hour, therefore every property owner should take action agsinst the presence of carbon monoxide in the home by purchasing one or more carbon monoxide detectors.

True

False

The explanation for the given answer, True, is that carbon monoxide gas is highly toxic and can quickly deplete the oxygen supply in a confined space, leading to death within as little as 30 minutes. Therefore, it is essential for property owners to take preventive measures by installing carbon monoxide detectors in their homes to ensure early detection and protection against this deadly gas.

Explanation

The explanation for the given answer, True, is that carbon monoxide gas is highly toxic and can quickly deplete the oxygen supply in a confined space, leading to death within as little as 30 minutes. Therefore, it is essential for property owners to take preventive measures by installing carbon monoxide detectors in their homes to ensure early detection and protection against this deadly gas.

3. Because of the Pennsylvania law known as the Real Esatate Seller's Disclosure Act (1996), any seller who intends to transfer an interest in residential real property shall disclose to the buyer all material defects to the property including environmental concerns and hazards.

True

False

The explanation for the given correct answer is that the Pennsylvania law, called the Real Estate Seller's Disclosure Act (1996), requires sellers to disclose any material defects in residential real property to the buyer. This includes environmental concerns and hazards. Therefore, it is true that sellers in Pennsylvania must disclose these issues to potential buyers.

Explanation

The explanation for the given correct answer is that the Pennsylvania law, called the Real Estate Seller's Disclosure Act (1996), requires sellers to disclose any material defects in residential real property to the buyer. This includes environmental concerns and hazards. Therefore, it is true that sellers in Pennsylvania must disclose these issues to potential buyers.

4. It is completely acceptable for real estate agents to give opinions on environmental issues, including the existence or non-existence of environmental concerns or hazards. Indeed, this is just being a good real estate agent.

True

False

Real estate agents should not give opinions on environmental issues. Recommend the use of a professional expert.

Explanation

Real estate agents should not give opinions on environmental issues. Recommend the use of a professional expert.

5. Even though recent studies show inconsistent and inconclusive results of living near high-tension electrical wires and electro-magnetic fields, real estate agents need to be aware that many buyers will want to know about such potential concerns and will avoid buying homes in such areas. Disclosure should automatically be made known to all prospective buyers.

True

False

Real estate agents should be aware that many buyers have concerns about living near high-tension electrical wires and electro-magnetic fields, even though recent studies have shown inconsistent and inconclusive results regarding the potential health risks. Therefore, it is important for agents to disclose this information to prospective buyers, as it may influence their decision to purchase a home in such areas.

Explanation

Real estate agents should be aware that many buyers have concerns about living near high-tension electrical wires and electro-magnetic fields, even though recent studies have shown inconsistent and inconclusive results regarding the potential health risks. Therefore, it is important for agents to disclose this information to prospective buyers, as it may influence their decision to purchase a home in such areas.

6. Recently the Environmental Protection Agency (EPA) estimates that perhaps as many as two million of the over five million underground storage tanks in this country are leaking some form of hazardous substance.

True

False

The given statement suggests that there is a high possibility of underground storage tanks leaking hazardous substances. The Environmental Protection Agency (EPA) estimates that out of the five million underground storage tanks in the country, around two million of them are leaking some form of hazardous substance. This indicates a significant concern for the environment and public safety.

Explanation

The given statement suggests that there is a high possibility of underground storage tanks leaking hazardous substances. The Environmental Protection Agency (EPA) estimates that out of the five million underground storage tanks in the country, around two million of them are leaking some form of hazardous substance. This indicates a significant concern for the environment and public safety.

7. Since property owners have no control over the deterioration of underground storage tanks, property owners are not legally liable for soil and water contamination of any property affected by leaking underground storage tanks.

True

False

Property owners ARE legally liable for soil and water contamination of any property affection by leaking underground storage tanks.

Explanation

Property owners ARE legally liable for soil and water contamination of any property affection by leaking underground storage tanks.

8. Since most people in the United States live in urban and suburban areas, contamination of ground water is not a major environmental concern. Only about 10% of properties in the US depend upon ground water for drinking purposes.

True

False

Actually, about 50% of all properties in the US depend upon ground water for drinking purposes.

Explanation

Actually, about 50% of all properties in the US depend upon ground water for drinking purposes.

9. The most significant law affecting the disposal of hazardous wastes is the Superfund Law of 1980 officially known as the "Comprehensive Environmental Response, Compensation, and Liability Act" (CERCLA). This law was a direct result of the toxic, hazardous wastes that were dumped into the infamous Love Canal, located in the city of Niagra Falls, NY.

True

False

The Superfund Law of 1980, also known as CERCLA, is indeed the most significant law that affects the disposal of hazardous wastes. This law was enacted in response to the dumping of toxic and hazardous wastes into Love Canal in Niagra Falls, NY. The law was created to address the environmental and health risks associated with hazardous waste disposal and to establish a fund for the cleanup of contaminated sites. Therefore, the statement "True" is correct.

Explanation

The Superfund Law of 1980, also known as CERCLA, is indeed the most significant law that affects the disposal of hazardous wastes. This law was enacted in response to the dumping of toxic and hazardous wastes into Love Canal in Niagra Falls, NY. The law was created to address the environmental and health risks associated with hazardous waste disposal and to establish a fund for the cleanup of contaminated sites. Therefore, the statement "True" is correct.

10. Radon is a common radioactive gas and can enter one's house only if the foundation of the house has been disturbed over time through settling.

True

False

Radon can enter one's house or building through such openings as the dirt trench surrounding a floating slab basement, through cinder block walls, through a sump pit in the basement, shower heads, and other sources.

Explanation

Radon can enter one's house or building through such openings as the dirt trench surrounding a floating slab basement, through cinder block walls, through a sump pit in the basement, shower heads, and other sources.

11. According to the Consumer Product Safety Commission, urea formaldehyde foam insulation (UFFI) used in paint and coating products, adhesives used to bond pressed wood, plywood, the resins in draperies and wood and particularly in the foam used since 1970s to insulate homes does cause skin rashes and eye irritation but has never been suspected to cause cancer in animals or humans.

True

False

There is serious speculation of formaldehyde being a possible CAUSE of cancer and research confirmed that urea formaldehyde foam insulation produced cancer in animals. However, court decisions reversed the action of the Consumer Product Safety Commission claiming there was "no direct evidence" linking the use of this insulation to cancer in humans.

Explanation

There is serious speculation of formaldehyde being a possible CAUSE of cancer and research confirmed that urea formaldehyde foam insulation produced cancer in animals. However, court decisions reversed the action of the Consumer Product Safety Commission claiming there was "no direct evidence" linking the use of this insulation to cancer in humans.

12. The Safe Drinking Water Act of 1974 was passed to exercise greater control of contaminants and take legal action against property owners who obtain their drinking water from private wells.

True

False

The Safe Drinking Water Act of 1974 was passed to exercise greater control of Public Water Authorities. If water is supplied to a property from a private well, then each home owner is responsible for testing for contamination.

Explanation

The Safe Drinking Water Act of 1974 was passed to exercise greater control of Public Water Authorities. If water is supplied to a property from a private well, then each home owner is responsible for testing for contamination.

13. Absestos had been used extensively as a component in building materials until 1987, when the federal EPA (Environmental Protection Agency) imposed restrictions limiting its use.

True

False

The EPA imposed restrictions in 1978.

Explanation

The EPA imposed restrictions in 1978.

14. The Superfund Amendments and Reauthorization Act (SARA) was passed by the federal government in 1986. This law set up a fund of money for the EPA to assist in the cleanup of lead-based paint sites and support to help rid urban homes of radon.

True

False

The Superfund Amendments and Reauthorization Act (SARA) was set up to considerably increase the standards for cleanup of hazardous waste sites, as well as to increase the amount of funding.

Explanation

The Superfund Amendments and Reauthorization Act (SARA) was set up to considerably increase the standards for cleanup of hazardous waste sites, as well as to increase the amount of funding.

15. If there is a possibility of the presence of mold, the real estate agent should inform the prospective buyer of that fact and it might be used as leverage in obtaining a good price for the buyer.

True

False

Real estate agents should NEVER give an OPINION. Refer to a professional!

Explanation

Real estate agents should NEVER give an OPINION. Refer to a professional!

Real Estate Fundamentals - Chapter 3: Environmental Concerns and Hazards

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2. Carbon monoxide gas can cut off the supply of oxygen and cause death in as short a time as one half hour, therefore every property owner should take action agsinst the presence of carbon monoxide in the home by purchasing one or more carbon monoxide detectors.

3. Because of the Pennsylvania law known as the Real Esatate Seller's Disclosure Act (1996), any seller who intends to transfer an interest in residential real property shall disclose to the buyer all material defects to the property including environmental concerns and hazards.

4. It is completely acceptable for real estate agents to give opinions on environmental issues, including the existence or non-existence of environmental concerns or hazards. Indeed, this is just being a good real estate agent.

6. Recently the Environmental Protection Agency (EPA) estimates that perhaps as many as two million of the over five million underground storage tanks in this country are leaking some form of hazardous substance.

7. Since property owners have no control over the deterioration of underground storage tanks, property owners are not legally liable for soil and water contamination of any property affected by leaking underground storage tanks.

8. Since most people in the United States live in urban and suburban areas, contamination of ground water is not a major environmental concern. Only about 10% of properties in the US depend upon ground water for drinking purposes.

10. Radon is a common radioactive gas and can enter one's house only if the foundation of the house has been disturbed over time through settling.

12. The Safe Drinking Water Act of 1974 was passed to exercise greater control of contaminants and take legal action against property owners who obtain their drinking water from private wells.

13. Absestos had been used extensively as a component in building materials until 1987, when the federal EPA (Environmental Protection Agency) imposed restrictions limiting its use.

14. The Superfund Amendments and Reauthorization Act (SARA) was passed by the federal government in 1986. This law set up a fund of money for the EPA to assist in the cleanup of lead-based paint sites and support to help rid urban homes of radon.

15. If there is a possibility of the presence of mold, the real estate agent should inform the prospective buyer of that fact and it might be used as leverage in obtaining a good price for the buyer.