Real Estate Chapter 21 Quiz

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Questions and Answers

Does the seller have any responsibilities regarding lead-based paint?

True (A)

What other hazards may be present in Jessica's potential new home? (Select all that apply)

  • Mold
  • Asbestos
  • All of these (correct)
  • Radon

Asbestos was found in most construction until what year?

  • 1990
  • 1980
  • 1970
  • 1978 (correct)

The Lead-Based Paint Hazard Reduction Act (LBPHRA) of 1992 requires disclosure of lead-based paint hazards.

<p>True (A)</p> Signup and view all the answers

The Environmental Protection Agency (EPA) is authorized to set national health-based standards for drinking water.

<p>True (A)</p> Signup and view all the answers

The water table is the natural level at which the ground is saturated.

<p>True (A)</p> Signup and view all the answers

Farm and residential storage tanks that hold 1,100 gallons or less of motor fuel used for noncommercial purposes are exempt from federal regulations.

<p>True (A)</p> Signup and view all the answers

Underground storage tanks (USTs) are exempt from federal regulations if they hold less than 110 gallons.

<p>False (B)</p> Signup and view all the answers

Capping is the process of pouring two to four feet of concrete over the top of the landfill site.

<p>False (B)</p> Signup and view all the answers

Defunct, derelict, or abandoned commercial or industrial sites are called brownfields.

<p>True (A)</p> Signup and view all the answers

The Superfund was created by the Comprehensive Environmental Response, Compensation, and Liability Act in 1980.

<p>True (A)</p> Signup and view all the answers

The Superfund Amendments and Reauthorization Act (SARA) created an 'innocent landowner' immunity status.

<p>True (A)</p> Signup and view all the answers

An ecological site assessment, commonly called Phase 1 or Phase 2, is performed to show that due care was exercised.

<p>True (A)</p> Signup and view all the answers

In most states, a real estate professional may be liable if they knew of a hazardous condition.

<p>True (A)</p> Signup and view all the answers

Tanks that are exempt from federal regulation do NOT include

<p>Tanks that hold 200 gallons. (A)</p> Signup and view all the answers

Which of these is responsible for administering the Superfund?

<p>EPA (A)</p> Signup and view all the answers

A hole lined with clay or a synthetic liner to prevent leakage of waste material describes what?

<p>A landfill. (A)</p> Signup and view all the answers

Individuals have suffered health problems due to exposure to formaldehyde EXCEPT:

<p>Mold infections. (B)</p> Signup and view all the answers

Real estate professionals should be particularly alert to evidence of underground storage tanks (UST) such as:

<p>Fill pipes and stained soil. (B)</p> Signup and view all the answers

Under the EPA classification, PRPs are:

<p>Potentially responsible parties. (A)</p> Signup and view all the answers

Groundwater, which exists under the earth's surface, forms the water:

<p>Table. (B)</p> Signup and view all the answers

Encapsulation is often a better solution than removal of which hazardous material?

<p>Asbestos. (D)</p> Signup and view all the answers

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is administered by:

<p>Environmental Protection Agency. (C)</p> Signup and view all the answers

Which of these would disqualify someone from claiming innocent landowner immunity under SARA?

<p>The owner had only constructive knowledge of the damage. (C)</p> Signup and view all the answers

According to the U.S. General Accounting Office, brownfields plague communities and:

<p>Contribute to a decline in property values. (B)</p> Signup and view all the answers

The flame-resistant chemical compounds used in electrical equipment are known as:

<p>PCBs. (A)</p> Signup and view all the answers

Which of the following is FALSE about asbestos?

<p>HUD requires that all residential buildings be tested for asbestos-containing materials. (D)</p> Signup and view all the answers

How can property owners help avoid carbon monoxide exposure?

<p>Have fuel-burning heating systems checked and maintained annually. (A)</p> Signup and view all the answers

Lead-based paint disclosure is:

<p>Required by federal law. (D)</p> Signup and view all the answers

What is the purpose of the Brownfields Law enacted in 2002?

<p>It distributes funds to clean up polluted sites. (A)</p> Signup and view all the answers

Nontoxic, nonflammable chemicals used as refrigerants are:

<p>CFCs. (B)</p> Signup and view all the answers

In a landfill, after waste is laid on the liner, what is done next?

<p>A layer of topsoil is compacted onto the waste. (B)</p> Signup and view all the answers

Groundwater forms the water table, which is:

<p>The natural level at which the ground becomes saturated. (A)</p> Signup and view all the answers

A prospective buyer of commercial property should include what in an offer?

<p>A contingency for an environmental site assessment. (C)</p> Signup and view all the answers

Capping is the method of:

<p>Laying soil over the surface of a landfill and planting vegetation. (B)</p> Signup and view all the answers

Many older tanks in a real estate transaction have never been registered and:

<p>May not comply with federal laws. (D)</p> Signup and view all the answers

The safest water is usually provided from:

<p>A municipal water supply. (D)</p> Signup and view all the answers

Underground storage tanks (USTs) are commonly found where?

<p>Petroleum products are used. (B)</p> Signup and view all the answers

CERCLA regulations for Superfund help pay for cleanup and do NOT include:

<p>Exempt responsibility for contaminating neighboring properties. (B)</p> Signup and view all the answers

The federal legislation to protect public health regarding drinking water supply is:

<p>The Safe Drinking Water Act (SDWA). (C)</p> Signup and view all the answers

At least how much of a tank must be underground for it to be considered an underground storage tank?

<p>10% (D)</p> Signup and view all the answers

Who should real estate professionals rely on for sound environmental information?

<p>Technical experts in the field. (A)</p> Signup and view all the answers

Under CERCLA, landowners can be held responsible for cleanup regardless of their actions.

<p>True (A)</p> Signup and view all the answers

The federal underground storage tanks (UST) program is regulated by:

<p>The Environmental Protection Agency. (B)</p> Signup and view all the answers

Federally funded projects require:

<p>An environmental impact statement (EIS). (D)</p> Signup and view all the answers

To avoid liability associated with environmental issues, the real estate professional should:

<p>Become familiar with common environmental problems. (B)</p> Signup and view all the answers

The process used to extract natural gas from deep layers of rock is known as:

<p>Fracking. (C)</p> Signup and view all the answers

All of the following are true about underground water contamination EXCEPT:

<p>It is a minor problem in the United States. (A)</p> Signup and view all the answers

What causes mold problems in buildings?

<p>Chronic moisture problems. (A)</p> Signup and view all the answers

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Study Notes

Lead-Based Paint and Responsibilities

  • Beatrice cautioned Jessica about potential lead-based paint hazards in older homes, emphasizing seller's obligations for disclosure.
  • Lead-based paint disclosure is required by federal law for residential properties.

Environmental Hazards

  • Various environmental hazards may exist in homes, including mold, radon, and asbestos.
  • Mold problems in buildings are primarily caused by chronic moisture.

Asbestos Regulations

  • Asbestos was widely used in construction until its ban in 1978.
  • HUD does not mandate testing all residential buildings for asbestos materials.

Superfund and Environmental Protection

  • The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) established Superfund to manage hazardous waste sites and spills.
  • Superfund Amendments and Reauthorization Act (SARA) provides "innocent landowner" immunity in specific conditions.

Groundwater and Water Supply

  • The water table is the natural saturation level of ground, often susceptible to contamination.
  • Municipal water supplies are typically the safest source of drinking water.
  • Federal regulations exempt tanks of specific capacities from oversight, including tanks under 110 gallons.

Underground Storage Tanks (USTs)

  • USTs are often found at sites where petroleum products are utilized, like gas stations.
  • Tanks must be at least 10% underground to be classified as USTs.

Real Estate Practices

  • Environmental assessments should be included as contingencies in commercial property offers.
  • Real estate professionals could be liable for known hazardous conditions, regardless of seller disclosures.

Regulatory Framework and Compliance

  • Environmental assessments, such as Phase 1, ensure due diligence regarding environmental impairments.
  • Federally funded projects require an environmental impact statement (EIS).

Health Risks and Mold

  • Exposure to formaldehyde can lead to various health issues, excluding mold infections which are caused by moisture.

Contamination and Liability

  • Owners of contaminated properties can be held responsible for cleanup regardless of their involvement in the contamination.
  • CERCLA imposes strict liability on potentially responsible parties (PRPs) involved with hazardous waste.

Climate Change Implications

  • The fracking process is used for extracting natural gas from deep rock layers, raising environmental concerns.

Brownfields and Community Impact

  • Brownfields negatively affect property values and community health, prompting legislative efforts for cleanup and redevelopment.

Asbestos Remediation

  • Encapsulation is often preferred for managing asbestos rather than removal due to potential contamination risks.

Compliance and Best Practices

  • Real estate professionals should collaborate with technical experts for reliable environmental information to minimize risk in property transactions.

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