With the increasing concern about environmental issues and the proliferation of regulations affecting residential property, you should be aware of these issues and requirements as they relate to the purchase of your new home. We have encountered several environmental issues related to home sale and purchase. We are enclosing environmental information from the EPA that addresses these topics in more detail. Please read this information carefully.

Radon

Radon is a colorless odorless, and tasteless gas that occurs throughout the environment. The radon that is present in soil or in well water may be a source of radon in the home. Radon may enter your home through cracks in concrete, floor drains, sump pump openings and any other entrances from the soil to your home. It also may seep into the ground water and then into the drinking or washing water in your home.

Radon gas breaks down into radioactive particles that remain in the air. The inhalation of radon over a period of many years has been associated with lung cancer. The EPA has developed guidelines that set forth the acceptable level of indoor radon.

ADP suggests that you have your new home tested for the presence of this pollutant. A simple test is performed at the time of your home inspection. A sample contingency clause that may be added to your home purchase contract, for the radon test, is in the Clause section of this handbook.

If elevated radon levels, based on EPA guidelines are found in your prospective home, you may consider requiring the seller remediate with a licensed or recognized state-approved radon mitigator. If you are building a new house, at the time of construction you may specify that the builder prepare the foundation of the home for possible radon remediation at a later date. Many states today require that this be done. Even with brand new construction, it is wise to conduct a radon test upon completion of the building.

High Tension Wires

Aside from being unsightly and potentially adversely affecting the resale value of a home, high tension wires emit Electro Magnetic Fields (EMFs) up to a certain distance. Though evidence is currently inconclusive as to whether constant exposure to levels of EMFs is harmful, some studies indicate that it is a possibility, and suggest that further study is necessary. We recommend that you be prudent when evaluating this issue.

Lead

Lead is a toxic element that, when ingested or inhaled, may cause harmful damage to the central nervous system, the brain, the kidneys and the red blood cells. Infants, children and pregnant women are more vulnerable to lead exposure. Lead may be present in drinking water, paint, the dust within a home and soil around the home. The combination of copper pipes connected with lead-based solder is found in many homes and may result in high levels of lead in water.

Lead-based paint was used in approximately two-thirds of houses built in the U.S. before 1940; one-third of the houses built from 1940-1960; and in a smaller portion of homes built since 1960.

Many states are beginning to introduce laws regulating lead in dwellings. Please discuss this with your real estate agent and attorney before purchasing a home.

Asbestos

Asbestos, which is strong, durable, an excellent fire retardant and an efficient insulator, may be found in flooring, ceiling tiles, insulation for heating and electrical systems, and in roof or outdoor house shingles.

Home health risks arise when asbestos-containing materials crumble, flake or deteriorate. This is referred to as friable. When this occurs, the asbestos fibers are released into the air and may be inhaled.

When purchasing a home, your home inspector should alert you to any potential asbestos problem. Please make a point of asking the inspector if he/she sees any asbestos and what kind of condition it is in. In addition, if the roof or exterior shingles are made with asbestos, any removal or replacement of shingles must be performed by a professional. This can be quite costly. You should consider all of these factors when analyzing a proper purchase price for the home.

Ground Water Contamination

Half of all Americans and 95% of rural Americans use ground water for drinking water. In certain locations, ground water has been contaminated.

The only way to know whether or not the water is contaminated is to test. When you purchase a home, if there is a well, you should test the water. If the house does not have a well, you may want to check with your local township to determine where the water is coming from, and if there are any problems.

Underground Storage Tanks

As many as 25% of all underground tanks may now be leaking and many more will leak in the future. Since much of our country depends upon ground water for drinking water, leaks may contaminate this vital resource as well as the surrounding soil. Some states require that these tanks be tested.

When you make an offer to purchase a home, as part of the disclosure statement the current homeowner should be asked if there is an underground storage tank. If you decide to purchase this home, we recommend that you require the current homeowner to remove the tank and certify that the soil is clean. In the Clause section, you will find a sample contingency clause similar to those added to purchase contracts requesting that underground storage tanks be tested.

If you are purchasing a condominium or cooperative, find out if there is an underground storage tank and if there has been recent testing. Please note that owners of condominiums and cooperatives are responsible for any required clean-up from a leaky underground storage tank. This usually takes the form of an assessment on the individual unit, and costs could be significant.

Formaldehyde (UFFI - urea-formaldehyde foam insulation)

Formaldehyde is an ingredient in foam that was used for insulation until the early 1980s.

Formaldehyde has been shown to cause cancer in animals. Higher-than-normal levels in the home may trigger asthma attacks in susceptible individuals. Other health risks include skin rashes; watery eyes; burning in the eyes, throat, and nose; and breathing difficulties.

When you make an offer to purchase a home, you should have a contingency regarding the presence of UFFI. (See Sample Clauses.) Your home inspector should be able to advise you if the house contains UFFI. If there are high levels of formaldehyde, you should require removal or remediation by the current homeowner.

Synthetic Stucco/Louisiana Pacific

Synthetic stucco is an external insulation finishing system that is applied and fastened over foam board. Louisiana Pacific siding is a composite wood product consisting of wood chips that are pressed together and looks very much like natural siding. The problem with these two sidings is their long-term effect on a home's wooden structure. Synthetic stucco insulates homes so tightly that it does not allow moisture to escape. When the stucco cracks, water permeates its surface and the wooden structure begins to rot. Louisiana Pacific siding allows water to penetrate around joints and window seams, which causes trapped moisture and eventual rot. Both of these sidings have caused serious repair problems yielding extremely high costs.

Your home inspection company can alert you in cases where there is a possibility that these sidings exist. Please discuss with the inspector and/or your Relocation Counselor the possible financial ramifications associated with owning a home with either of these sidings.

Composite Siding

There are many other types of composite siding that are considered defective and often in need of significant repairs. Your home inspector can determine the type and condition of the siding and will be able to discuss future liabilities with you.