March/April 2006 Issue
Page 3

STATE NEWS

LISA LEGAL HOTLINE NOTES

Question: A listing broker is listing a property that was used as a methamphetamine lab. The owner is going to throw out contaminated materials and have the entire house cleaned and repainted according to their county health department requirements. What must be disclosed to buyers?

Answer: Methamphetamine (meth) is a man-made amphetamine, produced and sold illegally in the form of pills, powder or chunks. Common street names for meth include speed, crank, ice, glass and crystal. Homemade meth is produced in makeshift labs set up in homes, apartments, hotel rooms, mobile homes or other buildings. Although the ingredients used to produce meth are readily available products, many of the chemicals used in the cooking process can be harmful. Short-term exposure to high concentrations of chemical vapors in a functioning meth lab can cause severe health problems or even death. For this reason, meth cookers, their families, and first responders are at highest risk of acute health effects including lung damage and chemical burns to different parts of the body. Unsuspecting people can also touch residues of meth and have symptoms similar to those experienced by meth users. This contamination needs to be cleaned up, and any sanitation, electrical and other safety hazards must be addressed.

Once the main chemicals related to the former lab have been removed, the health department is typically called in to assess the property for hazards and long-term exposure risks from residual chemicals. The Department of Natural Resources also may be called in to assess any environmental impacts from chemical spills or improper waste disposal. The broker should see if any report from these agencies is available to use as a disclosure document. There are no pre-determined, acceptable levels of clean up inside a building or home for the many chemicals associated with meth labs.

The State of Indiana does require the disclosure of the property's history pursuant to the Seller's Residential Real Estate Sales Disclosure Form. Under paragraph 3 of “Hazardous Conditions” the question is asked, “Have there been or are there any hazardous conditions on the property, such as methane gas, lead paint, radon gas,…toxic materials,…mold…asbestos…or PCB's?” Even if a condition has been cleaned up or remediated, the fact that it occurred still has to be disclosed pursuant to the language of this document.

If the seller does not disclose the property's history and the steps taken for remediation of the property, then REALTORS® should disclose this as information suggesting the possibility of a material adverse fact pursuant to IC 25-34.1-10-10.

Additional information concerning meth and meth lab clean up is available in the National Association of REALTORS® “Field Guide to Meth Labs” at www.realtor.org/libweb.nsf/pages/fg324 .

Resource: Indiana REALTOR® Magazine, February-March 2006

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