Unit 20 Environmental Issues and the Real Estate Transaction

Question 1

Asbestos is most dangerous when it
A is used as insulation.
B becomes airborne.
C gets wet.
D is around water pipes.

Answer 1

B becomes airborne.

Question 2

Encapsulation refers to the
A process of sealing a landfill with three to four feet of topsoil.
B way to apply asbestos insulation to pipes and wiring systems.
C method of sealing disintegrating asbestos.
D way in which asbestos becomes friable.

Answer 2

C method of sealing disintegrating asbestos.

Question 3

A broker shows a pre-World War I house to a prospective buyer. The buyer has two toddlers and is worried about potential health hazards. Which of the following is TRUE?
A There is a risk that urea-foam insulation was used in the original construction.
B The licensed real estate broker must offer to inspect for and remove any environmental hazards.
C There is a likelihood of the presence of lead-based paint.
D Radon should not be a concern due to the age of the property.

Answer 3

C There is a likelihood of the presence of lead-based paint.

Question 4

Which of the following is TRUE regarding asbestos?
A The improper removal of asbestos can cause further contamination of a building.
B Asbestos causes health problems only when it is eaten.
C Asbestos was only used in various types of insulation.
D HUD requires asbestos to be removed from all residential buildings prior to transfer of title.

Answer 4

A The improper removal of asbestos can cause further contamination of a building.

Question 5

Underground storage tanks
A are found only on commercial properties.
B that leak and cannot be removed may create a cloud on the title of the property.
C are currently regulated only by local laws.
D are easily detected by a vent pipe.

Answer 5

B that leak and cannot be removed may create a cloud on the title of the property.

Question 6

All of the following are true of electromagnetic fields EXCEPT
A that electromagnetic fields are a suspected but unproven cause of cancer, hormonal abnormalities, and behavioral disorders.
B that electromagnetic fields are generated by all electrical appliances.
C that electromagnetic fields are present only near high-tension wires or large electrical transformers.
D that electromagnetic fields are caused by the movement of electricity.

Answer 6

C that electromagnetic fields are present only near high-tension wires or large electrical transformers.

Question 7

Which of the following describes the process of creating a landfill site?
A Waste is liquefied, treated, and pumped through pipes to tombs under the water table.
B Waste and topsoil are layered in a pit, mounded up, and then covered with dirt and plants.
C Waste is compacted and sealed into a container and then placed in a tomb designed to last several thousand years.
D Waste is buried in an underground concrete vault.

Answer 7

B Waste and topsoil are layered in a pit, mounded up, and then covered with dirt and plants.

Question 8

Liability under the Superfund is
A limited to the current owner of record.
B joint and several, retroactive, but not strict.
C voluntary.
D strict, joint and several, and retroactive.

Answer 8

D strict, joint and several, and retroactive.

Question 9

All of the following have been proven to pose health hazards EXCEPT
A asbestos fibers.
B carbon monoxide.
C electromagnetic fields.
D urea-formaldehyde.

Answer 9

C electromagnetic fields.

Question 10

Which of the following is/are TRUE about radon?
I Radon is easily detected by its strong fruity odor.
II Radon can be remediated by encapsulation.
A I only
B II only
C Both I and II
D Neither I nor II

Answer 10

D Neither I nor II

Question 11

Under the Federal Lead-Based Paint Hazard and Reduction Act, which of the following statements is TRUE?
A All residential housing built prior to 1978 must be tested for the presence of lead-based paint before being listed for sale or rent.
B A disclosure statement must be provided to all purchasers and lessees involving residential properties built prior to 1978.
C A lead hazard pamphlet must be distributed to all prospective buyers but not to tenants.
D Purchasers of housing built before 1978 must be given a 10-day period to test the property for the presence of lead-based paint.

Answer 11

B A disclosure statement must be provided to all purchasers and lessees involving residential properties built prior to 1978.

Question 12

Radon poses the greatest potential health risk to humans when it is
A contained in insulation material used during the 1970s.
B found in high concentrations of unimproved land.
C trapped and concentrated in inadequately ventilated areas.
D emitted by malfunctioning or inadequately ventilated appliances.

Answer 12

C trapped and concentrated in inadequately ventilated areas.

Question 13

Radon is
A only found in the eastern United States.
B easy to detect because of its odor.
C a known human carcinogen.
D not found in older homes.

Answer 13

C a known human carcinogen.

Question 14

The MOST common source of harmful lead in older residences is in
A asbestos.
B basements.
C appliances.
D alkyd oil-based paint.

Answer 14

D alkyd oil-based paint.

Question 15

Urea-formaldehyde is found in residential properties in
A lead-based paints
B insulating foam.
C home appliances.
D electromagnetic fields.

Answer 15

B insulating foam.

Question 16

North Carolina brokers must provide a written disclosure regarding the presence of
A mold.
B lead-based paint in some dwellings.
C radon gas.
D asbestos.

Answer 16

B lead-based paint in some dwellings.

Question 17

The purpose of the North Carolina Leaking Petroleum Underground Storage Tank Cleanup Act is to
A regulate underground storage tanks’ discharge of any hazardous substance.
B prohibit residential owners from having underground storage tanks.
C prohibit owners who did not cause the leak from paying the cost of clean up.
D regulate only commercial underground storage tanks.

Answer 17

A regulate underground storage tanks’ discharge of any hazardous substance.

Question 18

In regard to environmental hazards, the real estate professional must be aware of
I actual liability
II potential liability.
A I only
B II only
C I and II
D neither I nor II

Answer 18

C I and II

Question 19

Real estate brokers
A must disclose the presence of a radon mitigation system.
B must disclose that a property’s radon test result was four picocuries or greater.
C require that sellers have a radon test completed prior to closing.
D require that sellers complete a radon disclosure statement.

Answer 19

B must disclose that a property’s radon test result was four picocuries or greater.