radon what you need to know real estate nov2017.ppt...

RADON and Real Estate What You Need to Know

Health CanadaNovember 2017

• Radon is a radioactive gas that is produced naturally by the breakdown of uranium in the ground.

• Radon represents almost 50% of a persons lifetime radiation exposure

• All homes have some level of radon (unless they are on stilts or in a tree) - the question is how much and the only way to know is to test

• If the radon level in your home is high it can be fixed! • Techniques to lower radon levels are effective and can

save lives. The radon level will be reduced more than 80% for about the same cost as other common home repairs such as replacing the furnace or air conditioner.

WHAT IS RADON

RADON – FEDERAL GUIDELINES

Normal Occupancy = Occupied for greater than 4 hours per day

Revised guideline introduced in 2007:

“Remedial measures should be undertaken in adwelling whenever the average annual radonconcentration exceeds 200 Bq/m3 in the normaloccupancy area”“Dwelling" includes residential homes, and buildings with a high public occupancy rate such as schools, hospitals, long-term care residences, and correctional facilities

HOW RADON ENTERS A HOUSE• Any cracks, openings or gaps in

foundation walls or floors provide route(s) of entry into home

• The air pressure inside a house is normally lower than the pressure underneath or around the foundation

• This difference in pressure acts like a vacuum drawing radon in through foundation cracks and other openings

• Once inside the home, radon can build up to dangerous levels

Image: Courtesy of the Department of Natural Resources Canada

• Radon is the 2nd leading cause of lung cancer after smoking

• Health Canada estimates that approximately 16% (3200) of lung cancers are radon induced.

• The only known health effect associated to long term radon exposure is an increased risk of developing lung cancer

WHAT ARE THE HEALTH RISKS

• Smokers also exposed to high levels of radon have a significantly increased risk of developing lung cancer

LIFETIME LUNG CANCER RISKS FROM RADON

Radon Level(Bq/m3)

Background200400800

Lifetime RiskNon-Smoker

1%2%3%5%

Lifetime RiskSmoker

12%17%22%30%

The combined effects of radon exposure and smoking create a RISK greater than the two actions separately

RADON EXPOSURE RISK COMPARISON

*All accidental deaths includes motor vehicle accidents, drownings, falls, fires and more

Two options1. Hire a certified radon measurement professional2. Purchase a do-it-yourself test kit

• Homes should be tested using long-term test device for a minimum of 3 months.

• If the radon level is above the Canadian Guideline level of 200Bq/m3 take action to reduce

www.TakeActiononRadon.ca/test

HOW CAN YOU TEST FOR RADON

• Indoor radon levels vary greatly, even over a 24 hour period

• Several factors including building design, building condition, occupancy pattern etc. influence radon levels in a house

• Two houses built side-by-side can have different indoor radon levels

• So, measurements gathered over a longer period of time will provide a better estimate of the annual average exposure

WHY LONG-TERM TESTING?

• If the radon level is found to be high, it can be fixed at a reasonable cost

• Hire a certified radon mitigation professional to help you find the best way to reduce the radon level in your home

HOW TO REDUCE RADON LEVELS

To find a certified mitigation professional go to: www.c-nrpp.ca

REDUCING RADON LEVELS• Techniques to lower

radon levels are effective and can save lives.

• A radon mitigation system can be installed in less than a day and reduce the radon level by more than 80%

• The same cost as other common home repairs, like replacing an air conditioner or washer and dryer.

WHAT IS HEALTH CANADA DOING ABOUT RADON?

NATIONAL RADON PROGRAM

National Radon Program

National Radon Lab

Radon Testing Project

Database & 

Mapping

Radon Research

Education & Public 

Awareness

Highlights:• Federal Building Testing Program – More than 20,000 buildingstested • Cross Canada residential radon testing project – ~18,000 homes

• 95% of the Health Regions that participated had homes that tested above the Canadian guideline of 200 Bq/m3

• ~ 7% of Canadian homes exceed the Canadian guideline• New 2010 National Building Codes for protection against radon ingress• Development of a Canadian Certification Program C-NRPP• Radon research in testing, mitigation techniques, granite and building

materials to support program, policy and public guidance• Extensive radon education and awareness programs across • the country

NATIONAL RADON PROGRAM

• Development and distribution of radon outreachmaterials

• Established NOVEMBER as Radon Action Month –TakeActiononRadon.ca

• Development of a PSA with Mike Holmes and MikeHolmes Jr.

• Canada Post’s SmartMoves program to 650,000 +homeowners annually

• Pro-active radon engagement with provinces andterritories to encourage action

• Events and conferences: home shows, health care,real estate and home builders

NATIONAL RADON OUTREACH

• Radon: Another Reason to Quit fact sheet - 500-700+ pads of factsheets sent to doctors office each month

• Promotion of the new radon accredited continuing medical education (CME) course for Health Professionals

• Pro-active engagement with and at risk regions and populations – schools / daycares / smokers etc…

• Train the Trainer program to educate Health Professionals• Engagement with Energy Efficiency Programs to incorporate

radon information • Canadian Real Estate Association co-branded radon publication

TARGETED RADON OUTREACH

www.canada.ca/radon

WHERE DOES RADON FIT IN A REAL ESTATE TRANSACTION

• Long term radon testing for 3 months is recommended = radon testing during a real estate transaction is not a great fit

• Homeowners should ideally test their home’s radon level before putting it up for sale.

• Knowing a home’s radon level can be a value-add / upsell rather than a testing roadblock

• Radon testing is a good healthy home prevention activity for new homeowners.

• RE Agents could include DIY long term test kits in the new homeowners gift basket

• In regions known to have high radon levels there may be more interest by home buyers to do a test

RADON & REAL ESTATE

• It is important that Real Estate professionals know and understand requirements around radon testing and mitigation, should the issue come up during a transaction with a home buyer or home seller.

• Buyers may have questions on the need for radon testing, the costs of remediation, and obligations of the seller

• Sellers may have questions on their obligations for testing and remediation

• There is no requirement to measure the concentrations of radon in a property you are planning to sell.

• If a radon test has been done in the past, results and any remedial work should be declared / shared with potential buyers..

RADON & REAL ESTATE

• CREA and Health Canada do not recommend incorporating radon testing during a real estate transaction.

• It is best to test the home once you are living in it - the test results are impacted by how you live in your home – windows and doors open or closed, air conditioning, fans etc…

If the client insists on a radon test – do a LT testOPTIONS1. Handle through price negotiation by including radon mitigation cost in the

Offer to Purchase • Challenge: Trying to negotiate down the value of the home without knowing if

there truly is a need for mitigation.2. Offer to Purchase is conditional on the completion of a LT test

• Challenge: only viable if the closing date is 90 days or longer after an agreement of purchase and sale has been accepted.

RADON & BUYING A HOME

EXAMPLE - BUYING A HOME IN NB3. Add the NBREA standardized clause for a negotiated amount to be put in

trust to cover the cost of mitigation and then testing can be completed after the sale closes:

The BUYER, at the BUYERS expense, will conduct a long term radon gas test starting on ____________ and ending on ______________. A holdback of $_____________ will be held in the BUYERS lawyer’s trust account pending results of the test. If the result of the radon concentration test is equal to or exceeds 200 Bq/m3, a copy of which will be provided to the SELLER/SELLER’S LAWYER/SELLER’S AGENT (select appropriate individuals and delete the rest) on or before _____________ , the holdback will be released to the buyer for remediation purposes. If the test results show a concentration of less than 200 Bq/m3 and remediation is not necessary, the holdback will be reimbursed to the SELLER.

• Funds only released once documentation of the mitigation has been completed.

• Except in certain extreme cases of infiltration, the cost of remedial or mitigation work is generally between $500 and $3,000 for a standard single-family home, duplex or triplex.

• This approach has been successfully used in Quebec Real Estate transactions

• Radon gas is included within a section of the NBREA Residential Property Disclosure Statement

Is there any radon mention / inclusion in Ottawa / ON Residential Property Disclosure documents ?

Example of NB Residential Property Disclosure Statement

KELLEY BUSHHEAD, RADON EDUCATION AND AWARENESS

Health Canadaradon@hc-sc.gc.ca