Environmental Considerations in Real Estate: Managing Risks and Responsibilities

Mold
Black Mold

Purchasing a property is a significant investment, and while buyers often focus on location, price, and structural integrity, one crucial aspect is frequently overlooked—environmental risks. Hidden environmental hazards can impact property value, pose health risks, and even lead to costly legal liabilities after the closing.

From contaminated soil and water pollution to hazardous materials lurking in older buildings, these risks can be difficult to detect without proper due diligence. Some issues may require extensive remediation, while others could make a property unfit for residential or commercial use altogether.

Understanding potential environmental risks before finalizing a real estate transaction is essential for protecting your investment and avoiding future complications. Let’s explore the most common environmental hazards property buyers should be aware of, how to identify them, and the steps to take if risks are found.

Common Environmental Risks to Watch Out For

When purchasing a property, it’s crucial to be aware of potential environmental hazards that could impact its safety, value, and long-term viability. Below are some of the most common environmental risks that buyers should consider before closing a deal.

1. Soil Contamination

Soil contamination occurs when hazardous substances, such as industrial chemicals, pesticides, heavy metals, or petroleum products, seep into the ground. This can happen due to past industrial activity, leaking underground storage tanks, or improper waste disposal.

Why It’s a Concern:

  • Contaminated soil can pose health risks to residents, especially children and pets.
  • It may require costly remediation efforts before the land can be safely used.
  • If the contamination extends to groundwater, it can affect drinking water quality.

How to Check for Soil Contamination:

  • Review the property’s history for previous industrial use.
  • Conduct a Phase I Environmental Site Assessment (ESA) to identify potential risks.
  • If contamination is suspected, a Phase II ESA with soil testing may be necessary.

2. Water Pollution & Quality Issues

Water contamination is a serious concern for both residential and commercial properties. Pollutants from industrial waste, agricultural runoff, or outdated septic systems can lead to unsafe drinking water and environmental damage.

Why It’s a Concern:

  • Contaminated groundwater can be hazardous to human health and wildlife.
  • Polluted water sources may require extensive treatment or alternative water solutions.
  • Properties in areas with high water table contamination can lose value.

How to Assess Water Quality:

  • Request a water quality report if the property relies on well water.
  • Conduct independent water testing for contaminants like lead, nitrates, and bacteria.
  • Check for nearby sources of pollution, such as landfills, industrial sites, or agricultural areas.

3. Air Quality Concerns

The air you breathe inside a property can be affected by pollutants from both indoor and outdoor sources. Poor air quality can lead to respiratory problems, allergies, and long-term health issues.

Why It’s a Concern:

  • Indoor pollutants like mold, asbestos, radon, and volatile organic compounds (VOCs) can accumulate in enclosed spaces.
  • Proximity to industrial areas or highways can contribute to high levels of outdoor pollution.
  • Airborne contaminants from nearby factories or construction sites can impact property livability.

How to Check for Air Quality Issues:

  • Inspect the property for signs of mold growth, especially in damp areas like basements.
  • Test for radon, a naturally occurring gas that can be harmful in high concentrations.
  • Check for asbestos and lead-based paint in older buildings (pre-1980s)
Asbestos
Asbestos Insulation

4. Hazardous Materials & Waste

Many older properties contain hazardous materials that can pose serious health and environmental risks. These materials may not be immediately visible, but they can become a problem during renovations or when disturbed.

Why It’s a Concern:

  • Lead-based paint, commonly used before 1978, can cause neurological and developmental issues, especially in children.
  • Asbestos, found in insulation, flooring, and roofing materials, can cause severe lung diseases if inhaled.
  • Underground storage tanks (USTs) for fuel or chemicals can leak over time, contaminating soil and groundwater.

How to Identify Hazardous Materials:

  • Hire a professional inspector to test for lead paint and asbestos before purchasing an older property.
  • Check for underground storage tanks, especially in properties with a history of fuel storage.
  • Review local environmental records for any prior hazardous waste incidents on or near the property.

5. Flood Risks & Climate Change Impacts

The increasing effects of climate change have made flooding a growing concern for property buyers. Even properties that were previously considered safe may now be at risk due to rising water levels and more frequent extreme weather events.

Why It’s a Concern:

  • Flood damage can lead to expensive repairs, mold growth, and structural issues.
  • Properties in flood-prone areas may require flood insurance, which can add to ownership costs.
  • Coastal and low-lying areas are more vulnerable to climate-related risks, affecting long-term property values.

How to Assess Flood Risks:

  • Use FEMA flood maps to determine if the property is in a high-risk flood zone.
  • Check the property’s flood history and whether it has experienced past flooding events.
  • Consider elevation surveys and drainage assessments to understand the property’s susceptibility to flooding.

6. Proximity to Brownfields & Superfund Sites

A property’s location relative to contaminated sites can significantly impact its safety and value. Brownfields and Superfund sites are areas where hazardous waste has been identified, and remediation efforts may be ongoing.

Why It’s a Concern:

  • Brownfields are properties with known contamination, often from past industrial use, which may require cleanup before redevelopment.
  • Superfund sites are highly contaminated areas designated by the Environmental Protection Agency (EPA) for remediation.
  • Nearby contamination can impact air quality, soil health, and groundwater safety.

How to Check for Nearby Contaminated Sites:

Consider an environmental site assessment to ensure there are no hidden risks.

Use the EPA’s Superfund site locator and state environmental agency databases to check for contamination risks.

Review local property records and environmental reports.

Here are some ways to improve air quality in your home: 

  • Air filters: Change your AC filter and other air filters regularly.  Air filters can clean the air throughout your home. 
  • Humidity: Control humidity levels above 50%. This can help prevent mold and mildew buildup.
  • Dust: Vacuum regularly and use a microfiber or damp cloth for dusting.  Wet mopping can also help reduce dust. 
  • Smoking: Keep track of indoor smoking. Avoid using anything that burns, such as wood fireplaces, gas logs, candles, or incense. 
  • Leaks: Check for leaks in your kitchen, bathroom, basement, and other areas. 
  • Plants: Indoor plants can help increase oxygen and purify the air. 
  • Other devices: Use essential oil diffusers, beeswax candles, salt lamps, or activated charcoal. 
  • Air quality monitor: Install an air quality monitor in your room/home. 

Other ways to improve air quality include: 

  • Using cooking vents
  • Keeping your rugs and carpets clean
  • Testing your home for dangerous gases like radon

Symptoms of poor air quality include: 

  • Visible mold or mildew
  • Warped or buckled floors
  • Dampness
  • Strange or unexplainable odors

Environmental Inspections are not provided by Mr. Home Inspector LLC

It seems that we hear a lot about environmental concerns these days. Much of it is simply the result of a greater awareness than in the past. There are still several potential home environmental issues that buyers should be aware of.

Private water (well) quality is probably the most common concern and the one most often tested for. Typically, a basic water quality test will check pH, water hardness, the presence of fluoride, sodium, iron, and manganese, plus bacteria such as E-coli., lead, or arsenic.

In homes built before 1978, lead-based paint may be present. Generally, if the lead-based paint is in good condition, not cracking or peeling, it is not an immediate hazard. If the condition is hazardous, the paint will either need to be removed or sealed in such a manner as to eliminate the hazard.Ā 

In older homes built more than 30 years ago, asbestos was used in many types of insulation and other building materials. If the asbestos is releasing fibers into the air, it needs to be removed or repaired by a professional contractor specializing in asbestos cleanup.Ā  Here is a link with additional information.Ā  https://www.asbestos.com/exposure/home/

Here are some ways to improve air quality in your home:Ā 

  • Air filters: Change your AC filter and other air filters regularly.Ā  Air filters can clean the air throughout your home.Ā 
  • Humidity: Control humidity levels above 50%. This can help prevent mold and mildew buildup.
  • Dust: Vacuum regularly and use a microfiber or damp cloth for dusting.Ā  Wet mopping can also help reduce dust.Ā 
  • Smoking: Keep track of indoor smoking. Avoid using anything that burns, such as wood fireplaces, gas logs, candles, or incense.Ā 
  • Leaks: Check for leaks in your kitchen, bathroom, basement, and other areas.Ā 
  • Plants: Indoor plants can help increase oxygen and purify the air.Ā 
  • Other devices: Use essential oil diffusers, beeswax candles, salt lamps, or activated charcoal.Ā 
  • Air quality monitor: Install an air quality monitor in your room/home.Ā 

Other ways to improve air quality include:Ā 

  • Using cooking vents
  • Keeping your rugs and carpets clean
  • Testing your home for dangerous gases like radon

Symptoms of poor air quality include:Ā 

  • Visible mold or mildew
  • Warped or buckled floors
  • Dampness
  • Strange or unexplainable odors

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50 Madison Avenue, Hasbrouck Heights, NJ 07604