14.42 Potential Liability Relating to Environmental Issues
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The real estate licensee’s responsibilities with regard to environmental issues are:
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To recognize common environmental hazards in residential properties such as peeling paint.
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To recognize environmental hazards in commercial, industrial, and agricultural properties such as strong odors.
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To recommend that the seller retain appropriate experts to identify and evaluate the scope of any potential environmental hazard.
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To have either the seller or buyer engage an attorney to draft appropriate disclosure documents regarding an identified hazard.
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To ensure that a property has been cleaned up and received an environmentally clean bill of health before the buyer takes title to a property, if representing a buyer.
Note: The potential liability resulting from taking title to a property with an environmental hazard is so great that a buyer should be encouraged not to take such a risk. If the buyer insists on purchasing such a property, the licensee should advise the buyer, in writing, not to proceed with the transaction without first consulting with an attorney.
