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Radon and Real Estate. by Jeff Miner Radon At Tahoe. Continuous Electronic Radon Tester. Do It Yourself Manual. Radon and Real Estate. Basic Education Remediation Finding Credible Support Avoiding Liability How to Develop a Radon Strategy.
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Radon and Real Estate by Jeff Miner Radon At Tahoe
Radon and Real Estate • Basic Education • Remediation • Finding Credible Support • Avoiding Liability • How to Develop a Radon Strategy
A Radon Strategy for Real Estate Professionals • Become “Radon Smart” • Be a problem solver • Act early in the sale • Have a dependable, “certified” TEAM • Network with mitigators, testers, builders, and other “like minded” real estate agents. • Understand liability issues • Hold back instructions allow sale to close • All radon problems can be fixed
Why Is Radon a Problem at Tahoe? • Radon causes lung cancer • Granite soils contain Uranium, hence radon. Over half the houses in South Lake Tahoe are over the EPA action level.
Natural Hazard Disclosure • JCP, Hirst, First American and others • All use EPA Radon maps • All show Tahoe as a “moderate radon area” • This is misleading and inaccurate but legal • Radon zone maps are being developed by California Geological Survey
Three Studies • California – 1989 • Nevada – 1991 • Tahoe Radon Survey - 2007
California DHS statewide radon study 1988-89 • “The Sierra Nevada region was significantly higher than other areas….” • Estimated that 11-45% of homes are above the U.S. EPA action level. • Action taken: None
Nevada1991 Radon SurveyZephyr Cove:69%*of homes over the EPA Action Level* The highest in the state! • Action Taken: None
Tahoe Radon Survey 2007 • 7,700 letters sent to addresses within the Tahoe Area including Sierra Nevada portions of : • El Dorado County • Placer County • Nevada County • Over 1,400 tests were received back • Results showed that over 38% of homes in the Sierra Nevada and over 50% of homes in South Lake Tahoe are over the EPA action level.
Percent of homes over 4 pCi/L 2007 Tahoe Radon Survey
What can you say? • New Sierra Radon maps are being developed • Hazard Disclosure Statements use county-based EPA radon maps which may not reflect true risk • Half the houses tested in SLT are over the EPA action limit • HUD recommends that all houses include a radon test as part of a home inspection. • Recognized authorities recommend you test your house for radon
National Association of Realtors has joined the EPA and DEP in recommending that EVERY house be tested for radon.
Cancer Survivors Against Radon Cansar.org • Real Estate agent for 31 years • Never tested his own home • Lung cancer victim • Found 10 pCi/L • Clients now get a very personal testimony about importance of testing For radon
Radon Tests NOT recommended Real Estate Transactions • Charcoal Test Kits Not Tamper Proof • Continuous Radon Monitors
Crawl Space Foundation Mitigation
Backdrafting • Carbon monoxide poisoning
The Role of Real Estate Professionals • Today, 75 percent of all radon tests occur as a result of a real estate transaction. • Therefore, real estate professionals play a pivotal role in helping the buyer obtain radon information.
Radon Testing – Real estate professionals role • Real estate professionals are precluded from performing any portion of a test contracted by either the buyer or the homeowner. That includes: • Placing the test device • Picking up the test device • Closing or sealing the device • Sending the device for analysis
Types of Potential Liability if Testing Not Done Properly: • Negligence • Fraud • Misrepresentation • There was a case where three real estate professionals who were successfully sued for failure to disclose the true radon levels found in a house for sale.
Fraud/Misrepresentation • “Radon is not a problem in this neighborhood because it has not been found at high levels.” • “Radon is not really a health hazard.” • “I don’t think this property has high radon levels.”
Avoiding Liability • Know the basics about radon. • Refer clients to radon experts for non-routine questions. • Encourage the buyer to get a radon test • Full disclosure of a radon test result and subsequent mitigation work must be provided by seller to buyer at contract of sale. • Do not participate in any aspect of the actual testing.
Liability • Landmark lawsuit in Pennsylvania, $30,000 • Ignorance of the law is no excuse • Presumption of knowledge of the area • Weigh the risk of losing a sale vs. liability • Natural Hazard Disclosure statement is misleading • National and State Real Estate Associations recommend being up front (CAR, NAR) • A Radon Strategy minimizes liability
Escrow Accounts • Hold back instructions • After a sale closes • To fund radon mitigation • Contingent upon the results of a long-term test (91 days or more) • If test is below EPA action level, money is returned to seller