6.1 Property Conditions and Environmental Hazards

Property Conditions and Environmental Hazards

Environmental hazards are heavily tested because they trigger specific federal rules and real liability. A salesperson is not an environmental expert. The exam wants you to know two things: (1) the basic facts of each hazard and any federal action level, and (2) the agent's duty — disclose what you know, never conceal, and refer the client to a qualified professional.

The single most tested rule is the federal Lead-Based Paint Disclosure Rule, authorized by Title X (the Residential Lead-Based Paint Hazard Reduction Act of 1992) and enforced jointly by the EPA and HUD.

Lead-Based Paint (Title X)

Lead-based paint was banned for residential use in 1978. The disclosure rule therefore applies to target housing — most residential housing built before 1978. For any sale or lease of pre-1978 housing the seller or landlord must:

• Disclose any known lead-based paint or hazards.
• Provide any available records or reports.
• Give the buyer the EPA pamphlet Protect Your Family from Lead in Your Home.
• Include the Lead Warning Statement and signatures in the contract.
• Give purchasers a 10-day period to conduct a lead inspection or risk assessment (the period can be waived or changed by mutual agreement).

Exemptions include housing built in 1978 or later, zero-bedroom units (studios, lofts), housing for the elderly or disabled (unless a child under 6 lives there), and short-term rentals of 100 days or less.

Worked example: A buyer is purchasing a 1962 colonial. The listing agent knows the seller patched peeling paint in the basement two years ago. Does the rule apply?

Yes — built before 1978, so it is target housing. The seller must disclose the known condition, deliver the EPA pamphlet, and the buyer gets the 10-day inspection window. Trap: the rule does not require the seller to test for or remove lead — only to disclose what is known and to permit the buyer's own inspection. Civil penalties for knowing violations can exceed $10,000 per violation, and agents who fail to ensure compliance share liability.

Underground Tanks, Groundwater, and the PCB/CFC Hazards

Beyond the headline hazards, the National portion tests a cluster of site contaminants and the agent's narrow role.

Water sources and well/septic

Many New Hampshire homes rely on a private well and an on-site septic system rather than municipal service. The agent should know that a failing leach field or a contaminated well is a material fact if known, and that buyers commonly add well-water testing and a septic inspection as contingencies. The agent discloses what is known and refers testing to qualified professionals.

Worked radon decision with NH context

A New Hampshire home tests at 5.5 pCi/L of radon in air. Because 5.5 exceeds the EPA 4.0 pCi/L action level, mitigation is recommended; a sub-slab depressurization system typically runs $800-$1,500 and is often negotiated as a seller credit. New Hampshire also sees elevated radon and arsenic in well water and PFAS in some areas, which is why the state requires a separate buyer notification under RSA 477:4-a (covered in the state chapters). The exam's recurring theme: the agent is not the lab.

Disclose known conditions, never conceal, deliver any required pamphlet, and direct the client to a licensed inspector or testing firm rather than offering an expert opinion.

Asbestos

Asbestos is a fibrous mineral used before the 1980s in insulation, pipe wrap, floor tiles, roofing, and popcorn ceilings. Its danger is inhalation of microscopic fibers, which can cause asbestosis, lung cancer, and mesothelioma. The key exam concept is friable vs. non-friable:

Undisturbed asbestos is often safest left in place. The two accepted remedies are encapsulation (sealing it) and abatement (licensed removal). Removal by untrained occupants is dangerous and frequently illegal. The agent's job is to disclose known asbestos and recommend a licensed inspector — never to advise the client to rip it out.

Radon

Radon is a colorless, odorless, radioactive gas produced by the natural decay of uranium in soil and rock. It seeps into homes through foundation cracks, sumps, and crawl spaces, and is the second-leading cause of lung cancer after smoking. Because it is invisible and odorless, the only way to know is to test.

The EPA action level is 4.0 pCi/L (picocuries per liter). At or above that level the EPA recommends mitigation, typically a sub-slab depressurization system — a vent pipe and fan that draws gas from beneath the slab and exhausts it above the roofline.

Worked example: A home tests at 6.2 pCi/L. Because 6.2 exceeds the 4.0 action level, the EPA recommends mitigation. A typical mitigation system runs roughly $800–$1,500; this is usually negotiated between buyer and seller, often paid as a seller credit at closing.

Mold and Wetlands

Mold grows wherever there is moisture and an organic food source (drywall, wood, paper). Health effects range from allergic reactions to respiratory problems. There is no federal mold action number like radon's 4.0; the exam's point is that the cure is to correct the moisture source — fix the leak, dehumidify, ventilate — because cosmetic cleaning without stopping the water lets mold return.

Wetlands are areas saturated by surface or ground water and are federally protected under the Clean Water Act, administered by the U.S. Army Corps of Engineers and the EPA. Filling, draining, or building on wetlands generally requires a federal permit. A buyer who plans to develop a parcel with wetlands may be sharply limited — so wetlands status materially affects value and must be investigated before purchase.