Environmental Issues
Jan E. Beran
UNL-Lincoln, Finance 382
Real Estate Principles and Practices
http://www.beranlaw.com/students/fin382
Balance 
Public Interest vs. Private Rights
•	Health and safety concerns
•	Information about property
•	Hazardous substances
•	Liability for health problems
•	Environmental issues

•	Affect value of property
•	Privacy rights
•	Obligation to disclose “latent” defects
•	Clean up or abatement
•	Disclosures and expertise
Dangers from All Around
Hazards
•	Asbestos
•	Lead Based Paint
•	Radon
•	Urea-Formaldehyde
•	Groundwater Contamination
•	Underground Storage Tanks
•	Waste disposal sites
Other Environmental Issues
•	Carbon Monoxide
•	Electromagnetic fields
•	Indoor air problems
•	Outdoor air problems
•	Endangered species
Legal Considerations
•	Statutory law
•	Federal laws
•	CERCLA/Superfund
•	Lead Paint
•	Asbestos
•	State environmental laws
•	Local
•	Common Law
•	Based on tort, contract or other theory of recovery:
•	Fraudulent/negligent misrepresentation
•	Fraudulent/negligent concealment
•	Primarily covers known latent defects
Implications
•	Potential liability for the agent and owner
•	Appraisers need to be aware of effect of environmental issue on value of subject property and neighboring property
•	Insurers
•	Mortgage companies

Disclosure Requirements
•	Sellers of residential property must disclose
•	Asbestos
•	Contaminated soil or water
•	Landfill or buried materials
•	Lead based paint 
•	Radon
•	Toxic Materials
•	Underground tanks
•	Hazardous substances
•	Penalty for failure to comply

Agent’s Responsibility
•	Agent has no obligation to inspect for defect
•	Advise Seller to disclose
•	If Agent knows of “defect” has obligation to disclose to customer
•	May be liable for damages if:
•	Fraudulent/negligent misrepresentation
•	Fraudulent/negligent concealment
Questions?
•	Patent or Latent Defect
•	Disclosure
•	Primary environmental concerns
•	Potential liability concerns