Environmental Issues in Real Estate Transactions
Environmental issues regularly crop up in all kinds of real estate transactions, either in the transfer of industrial and financial facilities or sale of an individual residence. In the mitigation process of these threats that are posed by Real Estate development, agencies and bodies have been enacted to see into compliance and protection of the environment (Chitransh, 2016). The common environmental concern is land contamination with regards to real estate (Jessen et al., 2018). Contamination that arises as a result of real estate’s development has its risks, and they include; cost overruns, the third party claims, regulatory enforcement, off-site disposal liability, and natural resource destruction, among others (Chitransh, 2016).
Summary of the environmental issues affecting Real Estate transactions.
Legal guidance in property transactions relies fundamentally on the identification of environmental risks which consists of a broad range of environmental issues. In a property environmental issues can originate from, past use of the site, the material used in the site and the neighbouring places, proposed and current usage of the site and regulatory requirements. In the identification of the environmental issues, due diligence is critical, it provides the buyer with credible information that influence their decision on the property. Due diligence gives the buyer authorization to use their expertise in analyzing and auditing the property. The information gathered determines negotiations and probable compliance issues all which are vital.
Asbestos
Asbestos element is present in many places, including the air and water. An asbestos mineral is used in a variety of construction materials, including covers of; water heater, pipes, furnaces, wallboard, roofing, and many more (McDonald, 1985). Asbestos has two unique features these are an excellent insulator and fireproof, reasons for its preferential use in insulation (McDonald, 1985). Asbestos poses various health risks when one is exposed to it, including; lung disease called asbestosis, mesothelioma cancer, and various respiratory ailments. The asbestos in these specific materials is not hazardous until it splinters into small particles in the air that are breathable. Once an individual inhales the particles, it attacks the system causing infection or disease.
State and federal regulations on asbestos mitigation in real estate transactions
The issue of asbestos is regulated both at the state level and federal level, with state laws getting further categorization on those that define asbestos litigation laws and those that implement the regulations. The federal government has significant asbestos statutes which are often delegated to the state governments or departments. They include; OSHA’s Construction Standards (OSHA 29 C.F.R. 1928.58), OSHA General Industry Standards (OSHA 29 C.F.R. 2910) and many more (Lahav & Pacheo, 2020). The asbestos litigation laws outline the legal rights that an individual has upon exposure to asbestos. They also outline regulations on who can file an asbestos lawsuit, when and which punitive action in regards to damage caused. For instance, the California Asbestos Laws focus on the safety of California residents against exposure to asbestos (Lahav & Pacheo, 2020). Lawmakers in these state approved the change in 2007 into the act that required landlords and employers to reduce asbestos and any of its exposure in their property (Lahav & Pacheo, 2020). Additionally, the law required abatement records for 30years to be kept by schools.
Recommendation for addressing the issue.
Most of the construction materials made with the asbestos were commonly used before 1978, and some of them are still present in some buildings to date. Therefore, any buyer of a property, especially old buildings, should be alert on the possible presence of asbestos. The problem of asbestos tends to be experienced mostly with old industrial, commercial building and, in a few cases, old residential properties that were built before 1978 (Lahav & Pacheo, 2020). If a buyer has purchased a building that used asbestos material, and he tries to remodel it, the main challenge here will be on off-site disposal of the material (McDonald, 1985). The process of disposing of materials that contain asbestos is very costly, and the implications of careless disposal are quite devastating. Therefore, if any asbestos issue is identified within a property, the owner should prioritize ending the problem first before closing any Real estate deal of the property.
Use of Lead Paints
Lead-based paint is often used in the creation of paints and pigments of different colours, and it was commonly used in the materials for solder and water pipes. It is also used for painting both interior and exterior surfaces of the house like doors and windows. Lead-based paint was prevalent, especially in buildings that were built before 1978, which some still exist up to now (United States Environmental Protection, 2019). This paint is dangerous to both humans and the environment at the same time. To humans, especially in children, it causes health risks like; impaired memory, impaired hearing, and balancing if they ingest the lead chips which their toys are painted with. Additionally, high accumulation of lead in the body is toxic, which ultimately causes poisoning, the first symptoms of poisoning include; anaemia, constipation, paralysis and many more ( Brown, 2009). The properties that have high Lead-Based Paint are old and are based in the low-income communities, and the cost of removing the LBP is way more costly than the property at times. Consequently, compelling the property owners to have the LBP removed from the property can have adverse effects, like refusal to lease a property to families with young children and abandonment of the property. Therefore in cushioning the property owners, the federal laws do not require general removal of LBP but advocates for performance standards of activities disturbing LBP and disclosure obligation (Brown, 2009).
Federal law to mitigate Lead-Based Paint
In the mitigation of the lead-based paint and its effects, an act known as the Lead-Based Paint Hazard Reduction Act (LBPHRA) was enacted in 1992 and charged with the responsibility of guiding the real estate transactions in regards to these paints ( Brown, 2009). Under this act was the Disclosure Rule and the Lead Safe Housing Rule (L.S.H. Rule). LBPHRA required both the landlords and the sellers to disclose any known lead hazards in their properties to buyers and renters in a disclosure form in the contract (United States Environmental Protection, 2019). The act also allowed the buyers or the renters a ten-day inspection period for lead paint before a final deal is made with the seller, further is the issuance of Protect Your Family from Lead in the Home to buyers.
Recommendation in solving Lead-Based Paint issues.
The Lead Law dictates and gives guidelines on how homes with lead paint are handled for all parties involved that are sellers, buyers, rental owners, real estate agents and many more. Most of the sellers and buyers are always not aware of the presence of lead-based paints in their properties. Therefore it is recommended that a homeowner must disclose any information they know about lead-based paint to the buyer or the renter. In case they are not aware they sign in the disclosure form that they are not aware and a test is conducted. Again the seller should provide the buyer with the pamphlet, Protect Your Family from Lead in the Home. The pamphlet explains the presence of lead in the property and what it means. Issuance of this pamphlet is both the state and federal requirement. The same form should be demanded by the buyer of the property too.
Conclusion
The above environmental issues mentioned above have remedies to them. The vital point, first and foremost, is in the identification of the issue. Once the problem has been determined, various environmental experts are consulted to offer a way forward concerning the issues raised. Currently, the global ecological assessment is a significant constituent in transactions of Real Estate. The move purposely mitigates future problems that might arise again if they are overlooked. Finally, the amicable aspect of addressing these issues is reliant on access to reliable and credible information about the property, understanding the impact of the problems, and solving them effectively.
References
Brown, P, S, (January, 2009). Federal Lead-Based Paint Enforcement Bench Book. National Center for Healthy Housing. https://nchh.org/resource-library/federal-lbp-enforcement-bench-book_2009.01.23.pdf
Chitransh, A. (October 26, 2016). Impact of environmental issues on real estate. https://www.kaplankirsch.com/portalresource/lookup/wosid/cp-base-4-25808/overrideFile.name=/Environmental-Issues-in-Real-Estate-Transactions.pdf
Jessen, P. B., Kirsch, K., & Rockwell. (2018, March 7). Environmental issues in real estate transactions. https://www.kaplankirsch.com/portalresource/lookup/wosid/cp-base-4-25808/overrideFile.name=/Environmental-Issues-in-Real-Estate-Transactions.pdf
Lahav, J, & Pacheo, W. (April, 16, 2020) State Asbestos Laws. The Mesothelioma Center. https://www.asbestos.com/mesothelioma-lawyer/states/
McDonald, J. C. (1985). Health implications of environmental exposure to asbestos. Environmental health perspectives, 62, 319-328. https://ehp.niehs.nih.gov/doi/pdf/10.1289/ehp.8562319
United States Environmental Protection Agency. (2019, August 12). Learn about lead. https://www.epa.gov/lead/learn-about-lead