Environmental Issues to Consider When Buying a House

It is important to be aware of any environmental liabilities associated with buying a house. For example, you should find out if there are any registered underground tanks within several miles of the property, known contaminated properties in the neighborhood, or property owners who have been fined by the government for failing to meet environmental safety standards. Before, it took a costly site investigation to acquire this type of information, but now there are online environmental databases available at a fraction of the cost. Anyone can access reports on otherwise hard to detect environmental issues. With these databases, it is possible to obtain a list of hazards near a property, or spills and violations attributed to businesses nearby. Some reputable databases include VISTA Information Systems, located in San Diego, California, which allows you to register and search the data bank for free, and E Data Resources, which is located in Southport, Connecticut. These services are all relatively inexpensive, but can provide you with priceless information that is useful before you make a purchase.

Introduction to Environmental Liabilities in Real Estate

When purchasing a house, it's crucial to consider potential environmental liabilities that could impact your health, safety, and financial well-being. Environmental issues can range from contaminated soil and groundwater to the presence of hazardous materials like asbestos or lead paint. Failing to identify these problems before closing the deal can lead to costly remediation efforts and potential legal consequences.

The Importance of Due Diligence

Conducting thorough research on the property's environmental history is essential to avoiding potential liabilities. This process involves:

• Utilizing online databases and resources to uncover potential issues
• Consulting with environmental professionals for expert advice
• Performing site visits to identify any visible signs of contamination

Conducting Research

• Reviewing historical land use records and aerial photographs to identify past industrial activities or potential sources of contamination
• Searching online databases, such as the Environmental Protection Agency's (EPA) databases, to determine if the property is listed as a contaminated site
• Consulting with local government agencies and environmental organizations to gather information on the property's environmental history

Consulting with Environmental Professionals

• Hiring an environmental consultant to perform an environmental site assessment (ESA) to evaluate the property's condition
• Engaging a professional to review historical records and conduct site visits to identify potential environmental concerns
• Consulting with experts in specific areas, such as asbestos or lead paint abatement, to provide guidance on potential remediation efforts

Common Environmental Concerns

Several environmental issues can impact a property's value and safety, including:

Underground Storage Tanks (USTs)

• Leaks from USTs can contaminate soil and groundwater, posing a significant environmental risk
• USTs can be found on properties previously used for industrial or commercial purposes, such as gas stations or factories
• Removing USTs and contaminated soil can be costly and time-consuming

Contaminated Soil and Groundwater

• Contamination can occur from various sources, including industrial activities, agricultural runoff, and waste disposal
• Contaminated soil and groundwater can pose a significant risk to human health and the environment
• Remediation efforts can include excavation and removal of contaminated soil, installation of groundwater treatment systems, and natural attenuation

Hazardous Materials

• Asbestos, lead paint, and other hazardous materials can be found in building components like insulation, flooring, and roofing
• Exposure to these materials can pose a significant risk to human health
• Abatement and removal of hazardous materials require specialized training and equipment

Identifying Environmental Liabilities

To protect yourself from inheriting environmental problems, it's crucial to perform due diligence before purchasing a property. This process involves researching the property's history and current condition to uncover any potential red flags.

Online Databases and Resources

• Utilizing online databases, such as the EPA's databases, to determine if the property is listed as a contaminated site
• Reviewing historical land use records and aerial photographs to identify past industrial activities or potential sources of contamination
• Consulting with local government agencies and environmental organizations to gather information on the property's environmental history

Hiring Environmental Professionals

• Engaging a professional to perform an environmental site assessment (ESA) to evaluate the property's condition
• Hiring an environmental consultant to review historical records and conduct site visits to identify potential environmental concerns
• Consulting with experts in specific areas, such as asbestos or lead paint abatement, to provide guidance on potential remediation efforts

Addressing Environmental Issues

If environmental liabilities are discovered during the due diligence process, it's essential to carefully consider your options and take appropriate action to mitigate potential risks.

Negotiating with the Seller

• Requesting the seller to address and remediate identified issues
• Adjusting the purchase price to account for necessary remediation costs
• Including contingencies in the purchase agreement related to environmental concerns

Remediation and Mitigation Strategies

• Removing underground storage tanks and contaminated soil
• Implementing groundwater treatment systems
• Abating hazardous materials like asbestos and lead paint
• Implementing natural attenuation or monitored natural attenuation to address contamination

Conclusion

Identifying and addressing environmental issues before purchasing a house is a critical step in protecting your health, safety, and financial investment. By conducting thorough due diligence, utilizing online databases, and consulting with environmental professionals, you can uncover potential liabilities and make informed decisions about the property. Remember, while environmental issues can be daunting, they can often be managed through proper negotiation, remediation, and mitigation strategies.

Tim Clarke's Perspective

As a seasoned real estate agent with 17 years of experience, I cannot stress enough the importance of considering environmental issues when buying a house. I've seen countless instances where buyers have been caught off guard by hidden environmental liabilities, leading to significant financial and emotional stress.

My team and I always prioritize due diligence when working with clients. We encourage them to take advantage of online databases and resources to research the property's history and potential environmental concerns. However, we also emphasize the value of partnering with trusted environmental professionals who can provide expert assessments and guidance.

If environmental issues are discovered, we work closely with our clients to navigate the negotiation process and develop effective remediation strategies. Our goal is to ensure that our clients can make informed decisions and feel confident in their property investment.

Ultimately, while environmental issues can be intimidating, they shouldn't necessarily deter you from purchasing a property you love. With the right approach, due diligence, and professional support, you can mitigate potential risks and enjoy your new home with peace of mind.