Environmental Hazards and Regulations

Environmental laws and natural conditions can restrict land use and affect value.

• Asbestos: insulation and fireproofing in older buildings
• Lead-based paint: residential properties built before 1978
• Mold: moisture-related indoor air hazard
• Radon: naturally occurring radioactive gas
• Underground storage tanks (USTs): petroleum or chemical leakage
• Methamphetamine contamination: chemical residue from illegal labs

• Earthquake fault zones
• Flood hazard areas
• Wildfire hazard severity zones
• Landslides and soil instability

California requires Natural Hazard Disclosure (NHD) reports.

• California Environmental Quality Act (CEQA): environmental impact review for development projects
• Federal Environmental Protection Agency (EPA) regulations
• State and local hazardous waste laws
• Clean Air Act and Clean Water Act

• Disclose known environmental hazards
• Recommend expert inspections when appropriate
• Avoid providing technical opinions beyond licensee expertise
• Use statutory disclosure forms when required

Failure to disclose material facts may result in liability.