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More useful resource links to help with the sale and purchase of your home.
PHYSICAL CONDITIONS
There are a number of physical conditions affecting real estate that are of concern to buyers. Real estate professionals have a duty to be informed on these issues, and a further duty to take all necessary steps to protect their buyers.
These issues include:
- Urea Formaldehyde Foam Insulation (UFFI) - Many properties had UFFI installed in the 1970's. While little scientific exists suggesting a health risk, properties with UFFI are still stigmatized.
- Buried Gasoline & Oil Tanks - These tanks represent a potential environmental hazard. Tanks not in use for two years or longer must be removed, and any contamination soil must be removed and properly disposed of. These tanks are regulated in Ontario by the Technical Standards & Safety Authority (TSSA). Regulations require regular upgrading of underground tanks. See the TSSA website for full details at: www.tssa.org.
- Termite Infestation - Subterranean termites are the most common variety in Ontario. Testing and treatment services are readily available. Because termites can do incredible damage, inspection and repair are key issues for any property that has experienced termite infestation.
- Lead-Based Paint - Lead is a serious health threat. That is why paint manufacturers and gasoline producers stopped including lead in their products years ago. However, many homes built before 1978 have lead-based paint in them today. Testing and removal must be conducted by qualified professionals.
- Radon Gas - Radon is a noble (inert) gas, like neon. When radon decays, as all elements do, it produces highly radioactive particles. These particles cause cancer. Research in the U.S. indicates that about 3% of all properties have health-threatening levels of radon in them. The Environmental Protection Agency estimates that 17,000 to 22,000 Americans die annually from radon exposure in their homes! That is why the Surgeon General recommended in 1985 that every property be tested for the problem. Testing is readily available, and the problem can be cured at a reasonable cost. Today, most new homes built in the U.S. have radon-resistant features.
- Asbestos Insulation - While it is an excellent insulator, asbestos poses a health hazard if the fibers are released into the air. As long as asbestos insulation is not disturbed, it is not a threat. Detection and removal require the services of a qualified professional. Even a professional cannot confirm that a substance is asbestos though visual inspection. Special testing is required.
- Hydro Wires & Electro-Magnetic Fields (EMFs) - Research on the potential health hazards caused by exposure to EMFs is inconclusive at best. Recent U.S. studies indicate that there is no health threat. However, some buyers may simply refuse to buy a property backing on a hydro corridor.
Mould - Mould has become a major concern to consumers and Realtors over the past ten years. Because of some multi-million dollar judgments, most property insurers will not offer coverage for mould-related problems any more, even on renewals of existing policies. If a property can't be insured, the buyer may not be able to get the mortgage. Sellers should always be asked if they have ever had water damage to the property (water is a major factor in mould growth). If so, the buyer will want to ensure that there isn't a mould problem. Furthermore, they buyer may want to make the offer conditional upon getting property insurance at a reasonable rate. A suggested clause for that purpose is:This agreement is conditional until 6:00 p.m. on the 5th day following acceptance, Saturdays, Sundays and Statuary Holidays excluded, upon the Buyer satisfying himself that he can obtain property insurance for the subject property at a premium and with coverage acceptable to the Buyer in his sole discretion. This condition is included for the sole benefit of the Buyer, and may be waived by him by notice in writing to the Seller or Seller's agent within the time limit specified above, failing which this Agreement shall become null and void and Buyer's deposit returned within interest of deduction.
OREA also provides two clauses for this purpose; INS-1 and INS-2
- Arsenic-Treated Lumber - The green-tinted wood used for outdoor facilities usually contains a chemical called Chromated Copper Arsenate (CCA). The arsenic content creates a health threat, which is why the manufacturers of CCA have voluntarily discontinued its production. Major retailers of CCA-treated lumber (e.g. Home Depot) have stopped selling it. Its use has been banned in many countries. Surprisingly, as of January, 2003, Health Canada has suggested that it is a safe product!
- Grow Houses - A "Grow House" is an illegal indoor marijuana growing operation. It is estimated that there are over 50,000 active grow houses in Canada today. The use results in significant damage to the property; the Insurance Bureau of Canada estimates that it costs $60,000.00 to $80,000.00 is average to repair the damage produced by grow house use. If a property has been used for this purpose, complete inspections and remedial work must be considered before the buyer commits to the purchase. OREA has some excellent clauses dealing with the grow house/illegal use issue. All OREA clauses are available to members through the OREA website.
- Polybutylene Pipes - In the late 1970's, polybutylene pipes became popular in the U.S. and Canada as a substitute for copper. Millions of properties had the material installed. Unfortunately, the material tends to crack over time, creating flooding problems. As a result of litigation, Shell Oil, the major producer of the resin used in piping, discontinued it manufacture in 1996. The product still exists in many properties today. A wise buyer will have the property's plumbing inspected prior to purchase to ensure that it is not made out of polybutylene. If it is, it can be replaced. The cost of replacement can be part of the negotiation between seller and buyer.
- Et Cetera - Other physical conditions that may be of concern to buyers and insurers include aluminum wiring, knob & tube wiring, lead plumbing and the dreaded insulbrick siding. You can be sure that other issues will crop up during your real estate career.
 For more details call Tom Irwin. tel: (705) 328-5424 [Direct]
email: tom.irwin@realestate-lindsay.com
tel: 1-877-878-9299
This web site is not intended to solicit properties currently listed.
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