# 14.42 Potential Liability Relating to Environmental Issues

**The real estate licensee’s responsibilities with regard to environmental issues are:**

- To recognize common environmental hazards in residential properties such as peeling paint.

- To recognize environmental hazards in commercial, industrial, and agricultural properties such as strong odors.

- To recommend that the seller retain appropriate experts to identify and evaluate the scope of any potential environmental hazard.

- To have either the seller or buyer engage an attorney to draft appropriate disclosure documents regarding an identified hazard.

- 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.