Environmental Considerations

Question 1

Hazard

Answer 1

Object

material

condition

that has the potential to cause harm to the health and safety of humans or to the environment.

Hazard becomes a risk when an external condition acts upon it

Question 2

ESA Phases

Answer 2

Three

Question 3

Phase 1 ESA

Answer 3

Inspect determines if there is a reason for an environmental hazard to exist

Review of existing information to determine if soil or ground water contamination exists

Historical and current records review

Site visit and inspection

Preparation of a written report

Question 4

Phase 2 ESA

Answer 4

Is there is a reason to suspect contamination, the site and suspected contaminants are tested

Environmental Sample analysis

Further research

Evaluate results

Question 5

Phase 3 ESA

Answer 5

Is contamination is found, remediation is implemented

Select remedial action

Implement remedial action

Question 6

What does a home inspector inspect

Answer 6

Heating
Plumbing
Electrical
Insulation
Structure
Building Envelope
Interior
Drainage

Question 7

Patent defects

Answer 7

Can be discovered through a reasonable inspect using ordinary measures

Inoperable doorbell

Broken bay window

Damaged baseboard

Broken toilet flush

Question 8

Latent defents

Answer 8

Cannot be detected through reasonable inspection

A leak in the basement

A crack in the wall behind a wall mounted TV

Water damage behind pipe under a sink

Question 9

REIX claim process

Answer 9

1. Inform your broker
2. Report the incident to REIX
3. Complete a liability insurance reporting form (LIRF)
4. Respond to requests by REIX promptly

Question 10

Test: What visible clues could indicate potential hazards on a property

Answer 10

Suspicious fill or mounds indicating the possibility of dumping

Solid waste in loose piles, stored in barrels or buried

Soil contamination evidenced by spills or oily residue on the ground

Question 11

Test: What are the reasons an environmental assessment might be required

Answer 11

To meet the requirements of a lending institute

To satisfy the buyer or seller in a property transaction

To establish the parameters for a risk management plan to mitigate the environmental hazards

Question 12

Test: Actions taken in a Phase 1 environmental site assessment

Answer 12

A historical and current records review

Site visit and inspection
Preparation of a written report

Question 13

Test: Signs that a property is being used as a meth lab

Answer 13

Extensive security

Metal drums and boxes with labels removed or sprayed over

Makeshift ventilation piping and venting

Question 14

Errors and Omissions Insurance

Answer 14

Covers damages related to the negligence of real estate industry members specific to activities involving a trade in real estate

Question 15

Test: Practices for a licensee to mitigate risk?

Answer 15

Discuss agency and ensure your client understands your role

Always use the correct forms for a transaction

Do not take on responsibilities that you are not knowledgeable in or licensed to complete

Question 16

Test: Material latent defect

Answer 16

Cannot be identified through a reasonable inspection of the property

Question 17

Test: REIX deductible if a claim has already been paid in a three year period

Answer 17

$7,000

Question 18

Phase 2 ESA

Answer 18

Physical testing is done on site of to confirm existence of contaminants

Question 19

Test: Which type of insurance should real estate professional investigate before conducting any real estate business

Answer 19

Auto insurance

General business liability insurance

Errors and Omissions insurance (provided by REIX)

Question 20

Test: What activities are exempt from REIX coverage

Answer 20

Title registration of conveyancing

Activities not considered to be trading in real estate

Dishonest, fraudulent or criminal activities

Question 21

Test: Your clients must maintain insurance on the property they are selling until at least the completion date indicated on the purchase contract

Answer 21

No