Asbestos, Radon, Mold and Indoor Air Hazards

Licensee Responsibilities and Environmental Disclosures

In residential real estate transactions, indoor air quality refers to the overall air quality within buildings as it relates to the health and safety of the occupants. Known environmental hazards that could affect a property's value, desirability, or the occupants' health may be considered material facts. Real estate licensees generally must disclose known material environmental hazards to prospective buyers as required by applicable state law. However, property disclosure requirements and seller disclosure forms regarding environmental hazards vary significantly by state, so licensees must always remain familiar with their jurisdiction's specific rules.

A real estate salesperson always carries out their disclosure duties under the authority and supervision of their supervising broker. Salespersons and brokers are real estate professionals, not environmental scientists. Licensees are not expected to be environmental experts, but they should recognize and report readily observable warning signs without attempting to diagnose a hazard themselves. Specific legal duties vary by state; when environmental concerns arise, licensees should recommend evaluation by qualified environmental professionals and follow applicable law and their supervising broker’s guidance.

Consider a transaction where a prospective buyer visits a home and spots crumbling insulation around basement plumbing or notices unexplained dampness. A licensed salesperson should not offer an amateur diagnosis or assure the buyer that the situation is safe. Instead, the salesperson should report the visible condition to the appropriate parties as required by law and recommend that the buyer hire a qualified environmental inspector to evaluate the home before proceeding.