National Real Estate Exam (PSI)Land Use Controls and RegulationsHard
A buyer is interested in purchasing a property that has an existing commercial building. During the due diligence period, an environmental assessment reveals that the property contains a significant amount of asbestos in the insulation and ceiling tiles. Under federal law, which of the following is true regarding asbestos?
- AAsbestos must be immediately removed upon discovery, regardless of its condition.
- BThe presence of asbestos automatically renders a property uninsurable and unfinanceable.
- CIntact asbestos that is not friable typically does not require removal but must be managed.
- DAll properties built before 1980 are legally required to have an asbestos abatement plan on file.
Show answer & explanationAnswer & explanation
Correct answer: C. Intact asbestos that is not friable typically does not require removal but must be managed.
Federal regulations, primarily under EPA and OSHA, focus on managing asbestos in place if it's not friable (easily crumbled) and therefore not releasing fibers. Removal is typically required when asbestos is damaged or friable, posing a health risk.
Why the other options are wrong
- A. This is incorrect; immediate removal is not always required, especially if the asbestos is intact and non-friable.
- B. This is incorrect; properties with asbestos can be insured and financed, provided the asbestos is properly managed or abated according to regulations.
- D. This is incorrect; while asbestos was commonly used before 1980, there is no blanket federal requirement for an abatement plan for all such properties.
Asbestos Management
The process of identifying, assessing, and controlling asbestos-containing materials (ACMs) to prevent the release of harmful fibers.
- Friable asbestos is the most dangerous.
- Often managed in place if intact (Operations & Maintenance plans).
- Removal (abatement) is costly and highly regulated.
Memory trick: If it's 'stable and sealed', you can 'manage the deal'; if it's 'cracked and loose', then 'abatement's the use'.