Healthy Indoors Magazine
Issue link: https://hi.healthyindoors.com/i/1173074
18 | September 2019 The Radon Contingency While buyers and sellers may agree in principle to the basic framework of a sale, many sales hinge on one or more "contingencies" that need to be addressed before closing. A contingency gives a buyer the ability to back out of a contract when certain conditions are met. In the case of radon, a contingency allows the buyer the option to negotiate repairs or fully void a contract based on the findings of certain tests and inspections. Just like the more commonly used inspection contingen- cy (used to assess the general condition of the home), a ra- don contingency is generally included in an offer to protect the buyer from any unknown surprises regarding high levels of radon that they may encounter in the future. If testing shows that the home has unacceptable levels, it will be between the buyer, their agent and/or real estate attorney to negotiate repairs or remediation with the sell- er. With this contingency, the buyer may simply void their contract and legally walk away from the agreement if the proper conditions are met (typically radon levels above a previously specified amount). Once the buyer and seller have negotiated the critical components of the sale, finding higher levels of radon in the home should not always be a deal-breaker as it's a rel- atively easy problem to solve. Even severe issues can be resolved with systems that can be installed for less than $2,000 in some cases. With that said, it's still crucial to de- termine how a resolution will be sorted out. Below are a few scenarios that buyers should pre- pare to be faced with when the radon inspections are completed: Scenario 1: High Levels of Radon, Seller Pays for Remediation One of the most common scenarios after a high-test result is that the seller will seek to resolve the issue themselves. perhaps even installing a passive radon ventilation system as a preventative measure while the home is being built. If buyers are interested in purchasing an existing home, they'll want to be assured that 1.) radon is not a problem on the property and 2.) if radon levels exceed recommenda- tions, there are processes in place to ensure the issue will be addressed to the satisfaction of all parties involved. Buyers should inquire about any previous radon test- ing on the property and if possible, request the report re- sults and dates. Even if this information is disclosed, it is often advised for a buyer to have their own inspection. In an area or "zone" prone to radon, arguably any contract for purchase should include radon testing and how any discovered issues will be mitigated. The good news is that even homes with high levels of radon can often be successfully mitigated relatively easily. This means that high radon levels should not necessari- ly be a "deal breaker" in a real estate transaction. However, it is still important to determine how the issue will be resolved and who is responsible for resolving it. Both buyer and seller typ- ically seek to find a resolution that is most favorable to them, but high radon test results most often means that the seller is responsible for remediation. Testing for Radon As a potential homeowner, it's important to know the signifi- cance of radon in the home and the importance of radon test- ing. It's recommended that routine radon testing be done twice a year for the best overall picture, as radon levels can fluctuate. However, buyers should never assume that this is being done to a property they are interested in purchas- ing. They should always ask for past radon reports and inspec- tions as well as have their own tests performed. There are two types of tests that can be run: a short- term test and a long-term test. Both consist of simply plac- ing a device in the home and slightly changing living habits during the span of the test. Usually this consists of keeping all windows closed and only opening doors to leave or en- ter the home. Short term tests provide a snapshot of the current radon levels and are usually used as first step in determining if more in depth testing is needed. Short term testing can last from 2 days to 2 weeks. And long-term test- ing can last anywhere from 3 months to a full year. The long-term test gives a better overall picture of true radon levels in a normally lived-in home, but oftentimes a short term test, or multiple short term tests, is the best course of action due to the time restraints of trying to close the sale. A buyer's agent can assist with finding a local profes- sional to give advice specific to the unique situation and property.