Real Estate Salesperson · Property disclosures and environmental issues · 6 min read
Groundwater, Storage Tanks and Brownfields
- Explain the environmental risks associated with groundwater contamination, private drinking water wells, private septic systems, and underground storage tanks.
- Differentiate the regulatory frameworks, liability structures, and assessment phases under CERCLA, SARA, and brownfield redevelopment programs.
- Identify the disclosure responsibilities and professional standards of practice for a real estate salesperson when environmental hazards or storage tanks are suspected or present.
Groundwater, Private Wells, and Septic Systems
Groundwater is water located beneath the earth's surface within soil pore spaces and rock fractures. The boundary where the unsaturated soil above meets the saturated soil and rock below is known as the water table. Because groundwater does not remain static, contaminated groundwater can migrate underground across property boundaries to affect neighboring parcels. Agricultural fertilizers and pesticides can contaminate groundwater when they infiltrate soil and leach downward; runoff primarily carries pollutants across the land surface.
Private residential systems can also compromise groundwater quality. Failing private septic systems can allow bacteria, viruses, and nitrates to enter the surrounding soil and reach the underlying water supply. Before a private septic system can be approved or installed on a parcel, a percolation test is commonly conducted. This test measures how quickly water moves through the soil, helping authorities and property owners determine whether the site is suitable for an on-site septic system.
While the Safe Drinking Water Act authorizes the federal government to establish national health-based standards for public drinking water, these federal standards generally do not apply to privately owned residential drinking water wells. As a result, testing the quality and potability of private well water is typically the responsibility of the property owner or prospective buyer. Real estate salespersons should note that some mortgage lenders and loan programs require a water potability test before approving a loan for a home served by a private well.
Common mistakes
- Believing that an 'as-is' clause in a purchase contract relieves the seller or licensee of the duty to disclose known material environmental defects.
- Assuming that Phase I Environmental Site Assessments involve intrusive soil and groundwater testing, when laboratory sampling actually occurs in Phase II.
- Thinking that the Safe Drinking Water Act sets mandatory water quality standards and inspection routines for private residential wells.
- Assuming that residential heating oil tanks used on the premises are subject to federal Resource Conservation and Recovery Act underground storage tank regulations.
Key points
- Groundwater is water in the saturated zone beneath the water table; it can migrate across boundaries and become contaminated when agricultural chemicals leach through soil or failing septic systems release pollutants.
- The Safe Drinking Water Act governs public water systems, leaving private well potability testing to the owner or buyer, though lenders may mandate testing for loan approval.
- An underground storage tank (UST) system has at least 10 percent of its volume buried; older bare steel tanks risk corrosion, leaks, and costly soil or groundwater remediation.
- Sanitary landfills use low-permeability liners, leachate collection, and methane gas venting to isolate waste, while capping limits water infiltration on closed sites.
- CERCLA liability generally is strict and retroactive and may be joint and several when harm is indivisible; the innocent landowner defense requires a qualifying buyer to conduct all appropriate inquiries before acquisition and meet other statutory conditions.
- Brownfields are properties where reuse is complicated by real or suspected contamination, often benefiting from federal, state, and local grants, tax incentives, and liability protections.
- Licensees must recognize red flags, consult their supervising broker, disclose known material facts as required by state law, and recommend qualified environmental professionals.
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Sample lesson: Seller Disclosures, Material Facts and Latent DefectsOriginal lesson written for Real Estate Salesperson practice · updated October 15, 2026. Exam names are trademarks of their owners; tests.global is not affiliated with them.