U.S. patent application number 14/104682 was filed with the patent office on 2014-04-10 for real estate disclosure reporting method.
This patent application is currently assigned to Empire IP LLC. The applicant listed for this patent is Empire IP LLC. Invention is credited to Stephen Zizzi.
Application Number | 20140100893 14/104682 |
Document ID | / |
Family ID | 36817006 |
Filed Date | 2014-04-10 |
United States Patent
Application |
20140100893 |
Kind Code |
A1 |
Zizzi; Stephen |
April 10, 2014 |
REAL ESTATE DISCLOSURE REPORTING METHOD
Abstract
A real estate disclosure reporting method identifies a subject
property, accesses an insurance claim database, determines from the
database whether an insurance claim has been filed for the subject
property and generates a report regarding the subject property and
the insurance claim.
Inventors: |
Zizzi; Stephen; (Southfield,
MI) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Empire IP LLC |
Austin |
TX |
US |
|
|
Assignee: |
Empire IP LLC
Austin
TX
|
Family ID: |
36817006 |
Appl. No.: |
14/104682 |
Filed: |
December 12, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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12957479 |
Dec 1, 2010 |
8359476 |
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14104682 |
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12128501 |
May 28, 2008 |
7865728 |
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12957479 |
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11382691 |
May 10, 2006 |
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12128501 |
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10658246 |
Sep 8, 2003 |
7096358 |
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11382691 |
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09259991 |
Mar 1, 1999 |
6981141 |
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10658246 |
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09074191 |
May 7, 1998 |
6185681 |
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09259991 |
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Current U.S.
Class: |
705/4 |
Current CPC
Class: |
H04L 9/32 20130101; H04L
9/3231 20130101; G06F 2211/007 20130101; G06F 2221/2107 20130101;
G06Q 50/16 20130101; H04L 9/0897 20130101; Y10S 707/99937 20130101;
G06F 21/31 20130101; G06Q 99/00 20130101; H04L 63/0428 20130101;
G06F 21/6218 20130101; H04L 63/168 20130101; G06F 21/34 20130101;
Y10S 707/99935 20130101; H04L 2209/76 20130101; G06Q 40/08
20130101; G06F 21/6209 20130101; H04L 9/0866 20130101; G06F 21/32
20130101; G06Q 30/0643 20130101; G06Q 10/063 20130101; H04L 63/06
20130101; G06Q 20/382 20130101; G06F 21/602 20130101; G06F 21/80
20130101; H04L 63/08 20130101; H04L 9/3247 20130101; Y10S 707/99931
20130101 |
Class at
Publication: |
705/4 |
International
Class: |
G06Q 40/08 20120101
G06Q040/08; G06Q 50/16 20060101 G06Q050/16 |
Claims
1. A real estate disclosure reporting method comprising:
identifying a subject property; accessing an insurance claim
database; determining from the database whether an insurance claim
has been filed for the subject property; and generating a report
regarding the subject property and the insurance claim.
Description
CROSS-REFERENCE TO RELATED APPLICATION
[0001] This application is a continuation of U.S. patent
application Ser. No. 13/108,948, filed May 16, 2011, titled Real
Estate Disclosure Reporting Method; which is a continuation of U.S.
patent application Ser. No. 12/584,199, filed Aug. 31, 2009, titled
Real Estate Disclosure Reporting Method, now U.S. Pat. No.
7,945,530; which is a continuation of U.S. patent application Ser.
No. 10/873,992, filed Jun. 22, 2004, titled Real Estate Disclosure
Reporting Method, now U.S. Pat. No. 7,584,167; which is a
continuation of U.S. patent application Ser. No. 09/663,152, filed
Sep. 15, 2000, titled Real Estate Disclosure Reporting Method, now
U.S. Pat. No. 6,766,322; which relates to and claims the benefit of
U.S. Provisional Application No. 60/213,778 filed Jun. 23, 2000,
titled Real Estate Disclosure Reporting Method. All of the
aforementioned prior patents, patent applications and provisional
patent applications are hereby incorporated by reference
herein.
BACKGROUND
[0002] The disclosure of real estate conditions is a critical
element in any property transaction and plays an increasingly
important role for property owners and their attorneys, agents,
brokers, appraisers, inspectors and other consultants. Federal and
state laws, lender policies and regulations, as well as demands by
prospective buyers create a considerable demand for the full
disclosure of any potential detrimental conditions. Notwithstanding
government requirements, there are several reasons that a full real
estate disclosure is beneficial. Buyers obtain better knowledge of
what they are purchasing, and a full disclosure helps shield
sellers, brokers and appraisers from future liability. Also,
lenders obtain a better understanding of their collateral asserts.
Real estate disclosure informs the user of the report that certain
conditions are known or believed to exist.
SUMMARY
[0003] Historically, the disclosure of conditions that might impact
property values or purchase decisions has been a fragmented topic.
There does not exist a single, universal disclosure report. Some
states require disclosure and others do not. Appraisers and
property inspectors disclose some conditions but not all of them.
Most real estate professionals issue reports with long boilerplate
disclaimers specifically citing that they did not investigate a
variety of issues, even though these issues could have a material
impact on the property's value or the decision to buy or lend.
[0004] One aspect of real estate disclosure reporting comprises
identifying a subject property, accessing an insurance claim
database, determining from the database whether an insurance claim
has been filed for the subject property and generating a report
regarding the subject property and the insurance claim. In various
embodiments, identifying comprises specifying the subject property
address and indicating whether the subject property is a
residential property or a commercial property. Reporting may also
comprise listing the source for information regarding the insurance
claim or categorizing the insurance claim. Categorizing may
comprise attributing the insurance claim to a force of nature or a
contamination of the subject property. Generating a report may
comprise creating the report on an electronic media and downloading
the electronic media to a user over the Internet.
[0005] Another aspect of real estate disclosure reporting comprises
researching an insurance claim on a subject property, categorizing
a cause of the insurance claim and generating a report listing the
subject property, the insurance claim and the cause. In an
embodiment, researching comprises accessing at least one
insurance-related database. In various embodiments, categorizing
comprises identifying distress conditions corresponding to the
insurance claim, identifying building conditions corresponding to
the insurance claim, identifying site conditions corresponding to
the insurance claim and identifying environmental conditions or
natural conditions corresponding to the insurance claim.
[0006] A further aspect of real estate disclosure reporting
comprises identifying a condition category regarding a property,
researching the property to determine a known items of disclosure
pertaining to the condition category, compiling the known items of
disclosure on a disclosure form according to the conditional
category, identifying the particular property on the disclosure
form and generating the disclosure form as a report of the know
items of disclosure. In an embodiment, the condition category
relates to a filed insurance claim. In various embodiments,
researching accesses one or more databases regarding known distress
conditions on the property such as a fire, known building
conditions on the property such as mold, known site conditions on
the property such as a landslide, known environmental conditions on
the property such as radon or asbestos and known natural conditions
on the property such as a flood.
BRIEF DESCRIPTION OF THE DRAWINGS
[0007] FIGS. 1A-B are a general block diagram of a real estate
disclosure reporting method;
[0008] FIG. 2 is a detailed block diagram of information sources
for researching a property;
[0009] FIGS. 3A-B are a real estate disclosure form and a
supplemental disclosure form, respectively;
[0010] FIGS. 4A-B are a flowchart of the ID (item of disclosure)
compiling process;
[0011] FIGS. 5A-B are a flowchart of the category defining
process;
[0012] FIGS. 6A-B are a flowchart of the ID classifying
process;
[0013] FIGS. 7A-B are a flowchart of the form creating process;
[0014] FIGS. 8A-C are a flowchart of the property researching
process;
[0015] FIG. 9 is a flowchart of the report generating process;
[0016] FIGS. 10A-J are tables of ID categories and associated
priority IDs;
[0017] FIG. 10A is a table listing IDs associated with general
conditions;
[0018] FIG. 10B is a table listing IDs associated with
transactional conditions;
[0019] FIG. 10C is a table listing IDs associated with distress
conditions;
[0020] FIG. 10D is a table listing IDs associated with legal
conditions;
[0021] FIG. 10E is a table listing IDs associated with external
conditions;
[0022] FIG. 10F is a table listing IDs associated with building
conditions;
[0023] FIG. 10G is a table listing IDs associated with soil
conditions;
[0024] FIG. 10H is a table listing IDs associated with
environmental conditions;
[0025] FIG. 10I is a table listing IDs associated with conservation
conditions; and
[0026] FIG. 10J is a table listing IDs associated with natural
conditions; and
[0027] FIGS. 11A-E are tables listing IDs that can be determined
from researching particular types of secondary information
sources;
[0028] FIG. 11A is a table listing IDs from government records;
[0029] FIG. 11B is a table listing IDs from police records;
[0030] FIG. 11C is a table listing IDs from Internet databases;
[0031] FIG. 11D is a table listing IDs from property profiles;
and
[0032] FIG. 11E is a table listing IDs from other secondary
information sources.
DETAILED DESCRIPTION
Real Estate Disclosure Reporting
[0033] FIGS. 1A-B illustrate an embodiment of the real estate
disclosure reporting method. The reporting method 100 has an ID
compiling process 110, a category defining process 120, an ID
classifying process 130, a form creating process 140, a property
researching process 150, and a report generating process 160. The
compiling process 110 has as inputs various disclosure requirements
170 and outputs a master compilation of items of disclosure (IDs)
116. The disclosure requirements 170 provide the legal and ethical
framework for a variety of conditions that real estate
professionals should disclose to parties that purchase or lend on a
property. These disclosure requirements 170 include conditions that
should be disclosed under federal law 172 and various state laws
174, conditions that lenders typically consider when deciding to
provide a loan secured by property 176 and conditions that
otherwise might impact the market value of property 178. The ID
compiling process 110 utilizes these federal 172, state 174, lender
176 and market disclosure requirements 178 to identify various real
estate related conditions and to determine those conditions which
should be disclosed. These master IDs 116 include priority IDs 112,
non-priority IDs 114, and associated definitions 118. The priority
IDs 112 determined by a particular application of the ID compiling
process 110 include over one hundred conditions, listed in FIGS.
10A-J and described in the Priority ID Glossary, Appendix A.
Additional IDs are described in the Non-Priority ID Glossary,
Appendix B. The ID compiling process 110, the priority IDs 112 and
the non-priority IDs 114 are described in further detail with
respect to FIGS. 4A-B, below.
[0034] As shown in FIG. 1A, the ID classifying process 130 has
condition categories 122 and the priority IDs 112 as inputs and
categorized IDs 132 as an output. The category defining process 120
generates the condition categories 122, which are general
descriptions of various real estate conditions. The ID classifying
process 130 associates various subsets of the priority IDs 112 with
each of the condition categories 122, resulting in the categorized
IDs 132. Advantageously, the categorized IDs 132 provide a tool for
systematically performing the property researching process 150. In
one embodiment, there are ten condition categories 122. The IDs can
be classified according to these ten categories 122 as described
with respect to FIGS. 10A-J, below. The category defining process
120 is described in further detail with respect to FIGS. 5A-B,
below. The ID classifying process 130 is described in further
detail with respect to FIGS. 6A-B, below.
[0035] Also shown in FIGS. 1A-B, the property researching process
150 utilizes various information sources 180 and the categorized
IDs 132 as inputs, applies these inputs to research a particular
property of interest and outputs known IDs 152 for that property.
The information sources 180 are characterized as primary sources
182, secondary sources 184 and third-party sources 188. Primary
information sources 182 are the property itself and the property
owner. Secondary information sources 184 comprise various publicly
available records, databases and documents, which can be accessed
for free or for a fee through an agency. Third-party information
sources 188 comprise various reports, studies, plans, surveys and
other documents that have been compiled by third-parties. The
property researching process 150 utilizes the information sources
180 to determine if any of the IDs are known to exist and to garner
associated details with respect to those IDs. The resulting known
IDs 152 are the collective information gathered for disclosure of a
property's condition. The information sources 180 are described in
further detail with respect to FIG. 2 and FIGS. 11A-E, below. The
property researching process 150 is described in further detail
with respect to FIGS. 8A-C, below.
[0036] FIG. 1A further shows that the report generating process 160
has disclosure forms 142, 144 and known IDs 152 as inputs and
outputs disclosure reports 162, 164. The form creating process 140
generates a primary disclosure form 142 and a supplemental
disclosure form 144. The primary disclosure form 142 displays
priority IDs 112 according to condition categories 122 along with a
convenient way of indicating known IDs 152. The supplemental
disclosure form 144 provides blank areas for entering disclosure
details, provides pre-printed legal disclaimers and provides
signature lines. The disclosure forms 142, 144 are advantageous
tools for systematically performing the report generating process
160. The report generating process 160 involves documenting
information regarding the known IDs 152 into a primary disclosure
report 162 and supplemental reports 164. The primary disclosure
report 162 provides a logical organization and presentation of a
property's condition based upon the known IDs 152. The supplemental
reports 164 document details associated with particular ones of the
known IDs 152, provide notice of legal disclaimers, and are signed
to acknowledge the disclosed conditions. The report generating
process 160 could be partially or wholly incorporated within the
property researching process 150 if the disclosure forms 142, 144
are completed as the information sources 180 are consulted. In that
case, completed disclosure forms 142, 144 incorporating the known
IDs 152 become partially or wholly completed disclosure reports
162, 164. Particular embodiments of the disclosure forms 142, 144
are described with respect to FIGS. 3A-B, below. The form creating
process 140 is described in further detail with respect to FIGS.
7A-B, below. The report generating process 160 is described in
further detail with respect to FIG. 9, below.
[0037] Information Sources
[0038] FIG. 2 illustrates the information sources 180 used in the
researching process 150 (FIG. 1A). As shown in FIG. 2, primary
information sources 182 are utilized to determine if any IDs are
known for a specific property. In particular, a researcher,
typically a real estate professional, conducts a property
walk-through 201, obtaining personal knowledge of any IDs through
direct observation of the property itself and the area surrounding
the property. Also, the researcher conducts an interview 203 of the
property owner, obtaining the owner's personal knowledge of any IDs
for the property and the surrounding area. These primary sources
are applicable to any of the categories of known IDs 152.
[0039] Shown in FIG. 2, secondary information sources 184 are also
utilized to determine if any IDs are known for a specific property.
In a particular embodiment, these secondary sources 184 include
government records 210, police records 220, Internet-searchable
databases 230, property profiles 240 and other secondary
information 250 that is publicly available and relevant to the
property, such as association dues, CC&R's, maps and MLS
information. As examples, a researcher might visit a city planning
department to access government records regarding zoning, building
permits and similar IDs. Also, the researcher could contact a title
company for a property profile to determine assessments, bonds,
building and land area, title ownership and similar IDs. Further,
the researcher could visit the local police depart to request
information under Megan's Law, records of crime activity on or near
the property, and similar IDs. In addition, the researcher could
utilize the services of a real-estate-based Internet information
provider, for a fee, to access a database of location-specific real
estate information. These secondary sources 184 are applicable to
any of the categories of the known IDs 152. IDs that can be
researched utilizing each of these secondary sources 184 are
described with respect to FIGS. 11A-E, below.
[0040] FIG. 2 further shows that various third-party information
sources 188 are used to determine if any IDs are known for a
specific property. In a particular embodiment, these third-party
sources 188 include site surveys, architectural plans and appraisal
reports that can determine known IDs categorized as general
conditions 205. Loan documents and escrow documents can determine
known IDs categorized as transactional conditions 215. Police
reports can determine known IDs categorized as distress conditions
225. Insurance policies, leases and contracts and title reports can
determine known IDs categorized as legal conditions 235. Aerial
photos can determine known IDs categorized as external conditions
245. Property inspection reports and termite reports can determine
known IDs categorized as building conditions 255. In addition,
property inspection reports along with soil reports can determine
known IDs categorized as site conditions 265. Phase I-II-10I
reports and environmental reports can determine known IDs
categorized as environmental conditions 275. Environmental impact
reports can determine known IDs categorized as conservation
conditions 285, and special studies can determine known IDs
categorized as natural conditions 295.
[0041] Disclosure Forms
[0042] FIGS. 3A-B illustrate disclosure forms 300, 350, which can
be used for specifying known IDs 152 (FIG. 1A) and providing a
disclosure report 162, 164 (FIG. 1A), as described above. FIG. 3A
illustrates a primary disclosure form 300, which is partitioned
into an introduction section 301 and multiple categorized sections
303. The introduction section 301 has a background portion 310 and
an information source portion 320. The background portion 310
provides information regarding the report user, the disclosure
date, property location and the property type, such as commercial
or residential. The information source portion 320 has a list of
the primary sources 182, secondary sources 184 and third-party
sources 188, as described with respect to FIG. 2, above. Proximate
to each of the listed sources 182, 184, 188 is an indicator area
307 for specifying that a particular source was utilized for
determining known IDs. The indicator area 307 may be a check box
for placing a checkmark or an "x."
[0043] As shown in FIG. 3A, each of the categorized sections 303
correspond to one of the condition categories 122 (FIG. 1A)
described above. Accordingly, each of the categorized sections 303
has a label 305 that identifies the particular condition category
122 (FIG. 1A) to which the categorized section 303 corresponds.
Listed within each of the categorized sections 303 are categorized
IDs 132 corresponding to the section label 305. Thus, each of the
categorized sections 303 provide a listing of associated
categorized IDs 132. Proximate to each of the categorized IDs 132
is either an indicator area 307 for specifying that a categorized
ID 132 is known or a comment area 308 for entering a note regarding
a categorized ID 132. The indicator area 307 may be a check box for
placing a checkmark or an "x," and the comment area 308 may be one
or more underlines. Also provided in most of the categorized
sections 303 are global indicators 309 for specifying that none of
the listed IDs in a categorized section 303 are known or are as
noted. Each categorized section 303 also provides a general
indicator marked "Other" for noting known non-priority IDs, which
would not be listed. Comments specifying such generally indicated
IDs can be provided on a supplemental disclosure form 350 (FIG.
3B), described below.
[0044] FIG. 3B illustrates a secondary disclosure form 350, which
is partitioned into a comments section 351, a notices section 353
and a signatures section 355. The comments section 351 provides a
lined space 360 for noting specifics regarding a non-priority ID
114 (FIG. 1A) or other condition that is flagged on the primary
disclosure form 300 under "Items as noted." The comments section
351 could also be used to provide commentary regarding a flagged
priority ID 112 (FIG. 1A). The notices section 353 contains
preprinted legal disclaimers 370. The signatures section 355
contains a "conditions accepted" signature block 380 for a party's
acknowledgement that they have been given notice of the listed
conditions. The signatures section 355 also contains "prepared by"
and "supervisor" signature blocks 390 for professional
acknowledgement of property inspection and associated research in
conjunction with completion of the disclosure forms 300 (FIG. 3A),
350.
[0045] Compiling IDs
[0046] FIG. 4A illustrates the first part of the ID compiling
process 110. Initially, disclosure requirements 170 are input 402.
Potential IDs are identified 404, for example using tentative ID
labels and descriptions based upon the real estate conditions the
IDs disclose. Comprehensiveness is tested 410 to determine if the
IDs meet all of the disclosure requirements 170. If not, additional
IDs are identified 412 and the IDs are retested 410 to determine if
all disclosure requirements 170 are met. If so, ID breadth is
tested 420 to determine if the identified IDs are sufficiently
narrow in scope to adequately describe a real estate condition to
an interested party. If not, then each overly-broad ID is
recharacterized 422 as two or more IDs of narrower scope, and
comprehensiveness is retested 410. If so, mutual exclusiveness is
tested 430 to insure that the IDs are not overlapping or redundant
in scope. If any IDs are not mutually exclusive, then overlapping
IDs are recharacterized 432, for example using new tentative labels
and descriptions as necessary, redundant IDs are eliminated 434,
and comprehensiveness is retested 410.
[0047] FIG. 4B illustrates the last part of the ID compiling
process 110, continuing from FIG. 4A. If the IDs are all mutually
exclusive, the IDs are named and defined 440, which generates a
compilation or list of master IDs 116 and associated definitions
118. Each of the master IDs 116 is compared 450 with the disclosure
requirements 170 (FIG. 4A). If an ID relates to Federal or state
requirements 452, the ID is identified as a priority ID 460. If
not, it is determined if the ID relates to common lender or market
requirements 454. If so, the ID is identified as a priority ID 460,
otherwise, it is not. It is then determined 470, if all of the
master IDs 116 have been compared with the disclosure requirements
170 (FIG. 4A). If not, a different ID is compared 450 with the
disclosure requirements 170 and the above described process
continues. Otherwise, the ID compiling process is complete.
[0048] Defining Categories
[0049] FIG. 5A illustrates the first part of the category defining
process 120. Initially, priority IDs are inputted 502 from a
compilation or list of priority IDs 112. Commonalities are
identified 504 among the priority IDs 112 from a review of priority
ID names and definitions. Then, initial categories are defined 508,
providing tentative descriptions or descriptive labels, for
example. Comprehensiveness is tested 510 to determine if the
defined categories have sufficient scope to include or cover all of
the priority IDs 112. If not, additional categories are defined 512
and category comprehensiveness is retested 510 to determine if all
priority IDs 112 are included or covered. If the defined categories
are comprehensive, then breadth is tested 520, 530 to determine if
the defined categories are sufficiently broad or narrow in scope to
adequately classify the priority IDs into categories. This may
require an iteration of the ID classifying process 130, described
with respect to FIGS. 6A-B, below. For example, if there are dozens
of categories with only a few IDs being classified into each
category or if there are only a few categories with many IDs being
classified into each category, the resulting forms and the
associated research and disclosure processes described herein may
be less useful. Broadness is tested 520 to determine if there are
too many categories or if the category definitions are too narrow
in scope. If so, categories are combined or redefined into broader
categories 522 and the comprehensiveness test 510 is repeated.
Otherwise, narrowness is tested 530, to determine if there are too
few categories or if the category definitions are too broad in
scope. If so, categories are split or redefined into narrower
categories and the comprehensiveness test 510 is repeated.
[0050] FIG. 5B illustrates the last part of the category defining
process 120, continuing from FIG. 5A. After comprehensiveness is
tested 510 (FIG. 5A) and breadth is tested 520, 530 (FIG. 5A),
category logic is tested 540 to determine if all the priority IDs
can be rationally or sensibly associated with the defined
categories. This may also require an iteration of the ID
classifying process 130, described with respect to FIGS. 6A-B,
below. If the defined categories do not allow logical ID
classification, the categories are redefined 542 and the
comprehensiveness test 510 (FIG. 5A) and breadth tests 520, 530
(FIG. 5A) are repeated. If the defined categories are logical, the
categories are given generally descriptive names 550, generating a
compilation or list of condition categories 122 to complete the
category defining process 120. As noted above, the category
defining process 120 may be iterative with the ID classifying
process 130, described with respect to FIGS. 6A-B, immediately
below.
[0051] Classifying IDs
[0052] FIGS. 6A-B illustrate an embodiment of the ID classifying
process 130 for a particular set of condition categories 122 (FIG.
1A). As shown in FIG. 6A, initially, condition categories and
priority IDs are inputted 602 from a compilation or list of
priority IDs 112 and a compilation or list of condition categories
122. Then, priority IDs are tested to determine if any impact all
property 610. If so, these IDs are assigned to the general category
612. Next, priority IDs are tested to determine if any are a one
time issue for a buyer 620. If so, these IDs are assigned to the
transactional category 622. Following that, priority IDs are tested
to determine if any are environment related 630. If so, these IDs
are assigned to the environmental category 632. Next, priority IDs
are tested to determine if any are conservation related 640. If so,
these IDs are assigned to the conservation category 642. Then,
priority IDs are tested to determine if any are related to the site
650. If so, these IDs are assigned to the site category 652.
[0053] As shown in FIG. 6B, continuing the ID classifying process
130, priority IDs are tested to determine if any are related to
natural conditions 660. If so, these IDs are assigned to the
natural category 662. Following that, priority IDs are tested to
determine if any are related to building conditions 670. If so,
these IDs are assigned to the building category 662. Next, priority
IDs are tested to determine if any are related to conditions
external to the property 680. If so, these IDs are assigned to the
external category 682. Then, priority IDs are tested to determine
if any are related to legal obligations 690. If so, these IDs are
assigned to the legal category 692. Finally, all remaining, i.e.
unclassified priority IDs, are assigned to the distress category
694.
[0054] As shown in FIGS. 6A-B, the ID classifying process 130
advantageously assigns the priority IDs 112 to condition categories
122 in a predetermined sequence. In this manner, IDs that can be
classified within any of several condition categories are resolved
into a single condition category. In the particular embodiment
shown, the general category test 610 is performed first, the
transactional category test 620 is performed second and so on until
assignment to the distress category 694 is performed last by
default. As such, an ID that might be classified, for example, as
either environmental or external, such as a nuclear plant, would be
classified as environmental because the process performs the
environmental category test 630 before the external category test
680. That is, assignment of IDs 112 to condition categories 122 is
prioritized according to this predetermined sequence.
[0055] Creating Forms
[0056] FIGS. 7A-B illustrate the form creating process 140. FIG. 7A
illustrates the creation of a primary real estate disclosure form
142, and FIG. 7B illustrates the creation of a supplemental real
estate disclosure form 144. As shown in FIG. 7A, blank media is
obtained 702, which may be, for example, physical paper, magnetic
or other storage media or electronic media, such as a web page
formatted with HTML or any other markup language for downloading to
a browser over the Internet. In addition, categorized IDs are
inputted 704 from a compilation or list of categorized IDs 132.
Further, the media is partitioned 710, and the partitions are
labeled 720 according to the condition categories corresponding to
the categorized IDs 132. Also, the categorized IDs are listed
within the partitions according to assigned categories 730.
Categories are assigned according to the ID classifying process 130
(FIGS. 6A-B), described above. Prompts are provided proximate the
categorized IDs 740. A prompt may be, for example, a blank box for
placing an "x" or checkmark to indicate a known ID. Finally, the
primary real estate disclosure form is stored and/or printed 750.
Copies of the resulting primary disclosure form 142 are then
available for the report generating process 160 (FIG. 9), described
below and to assist in conducting all or part of the property
researching process 150 (FIGS. 8A-C), also described below.
[0057] As shown in FIG. 7B, initially blank media is obtained 706,
and the media is partitioned 708. As described above, the media may
be physical paper, magnetic or other storage media, or electronic
media, for example. Further, one or more of the partitions are
labeled for comments 760, one or more of the partitions are labeled
for legal notices and disclaimers 770, and one or more of the
partitions are labeled for signatures 780. Finally, the
supplemental real estate disclosure form is stored and/or printed
790. Copies of the resulting supplemental disclosure form 144 are
then available for the report generating process 160 (FIG. 9).
[0058] Researching Properties
[0059] FIGS. 8A-C illustrate the property researching process 150.
As shown in FIG. 8A, initially, categorized IDs are inputted 802
from a compilation or list of categorized IDs 132. Primary research
is performed 810, described with respect to FIG. 8B, below. Also,
secondary research is performed 830, described with respect to FIG.
8C, below. Further, any available third-party sources are accessed
850. Finally, any known IDs are documented 870, as determined from
the primary 810, secondary 830 and third-party 850 research, to
generate a compilation or list of known IDs 152 and associated
comments or notes.
[0060] FIG. 8B illustrates the primary research portion 810 of the
property researching process 150 (FIG. 8A). The researcher notes
any personal knowledge they have of IDs 812. A property
walk-through is performed 814, where the researcher notes any
obvious IDs. Further, the researcher interviews the property owner
and notes the owner's knowledge of any IDs 818.
[0061] FIG. 8C illustrates the secondary research portion 830 of
the property researching process 150 (FIG. 8A). The researcher
accesses property profile databases 832, which may be available
over the Internet, and downloads a property profile 834. The
researcher also accesses any other databases available over the
Internet 836 and downloads any property-related data 838
accordingly. The researcher also visits local, state or Federal
government offices 842 to review any property-related records that
may be available. Also, the researcher visits local law enforcement
offices 844 to review, for example, their records of any
property-related incidents. Finally, the researcher accesses any
other property-related data 846, such as maps, market studies,
homeowner association records and multiple-listing service (MLS)
documents.
[0062] Generating Reports
[0063] FIG. 9 illustrates the report generating process 160.
Initially, known IDs are inputted 902. These known IDs 152 are
compiled during the property researching process 150 (FIGS. 8A-C)
and may include, for example, records and other printed data, notes
and recollections of a researcher, and checkmarks or other
indications and comments that a researcher has made on the primary
and supplemental real estate disclosure forms 142, 144. Also, the
primary and supplemental real estate disclosure forms are inputted
904, 906. The primary and supplemental real estate disclosure forms
142, 144 are generated from the form creating process 140 (FIGS.
7A-B), described above. Known priority IDs are indicated on the
primary disclosure form 910. Further, known non-priority IDs are
generally indicated on the primary disclosure form 920, such as
marking "Other," and comments regarding these known non-priority
IDs are made on the supplemental disclosure form 930. The completed
primary disclosure form the completed supplemental disclosure forms
are provided 940, 950 as a primary real estate disclosure report
162 and associated supplemental real estate disclosure reports 164,
along with other relevant attachments, e.g. maps. Real estate
professionals can then present these generated reports 162, 164 to
various interested parties for signature and satisfaction of the
requirements, obligations or needs to disclose the condition of a
particular property.
[0064] Categorized IDs
[0065] FIGS. 10A-J illustrate categorized IDs 132, described
generally with respect to FIG. 1A, above. In one embodiment, ten
condition categories 122 (FIG. 1A) are determined. These are (I)
general; (II) transactional; (III) distress; (IV) legal; (V)
external; (VI) building; (VII) site; (VIII) environmental; (IX)
conservation; and (X) natural conditions. The general condition
category encompasses conditions that impact all property. FIG. 10A
illustrates general categorized IDs 1005. The transactional
condition category encompasses one-time issues for a buyer. FIG.
10B illustrates transactional categorized IDs 1015. The distress
condition category encompasses any tragedy or perceived future
potential tragedy associated with a property. FIG. 10C illustrates
distress categorized IDs 1025. The legal condition category
encompasses legal obligations on the part of a property owner. FIG.
10D illustrates legal categorized IDs 1035. The external conditions
category encompasses "externalities" that may have an influence on
a property. FIG. 10E illustrates external categorized IDs 1045. The
building condition category encompasses the design, construction or
condition of a building or a building's improvements. FIG. 10F
illustrates building categorized IDs 1055. The site condition
category encompasses the geotechnical condition of a property. FIG.
10G illustrates site categorized IDs 1065. The environmental
condition category encompasses actual or potential contamination
issues. FIG. 10H illustrates environmental categorized IDs 1075.
The conservation condition category encompasses wildlife or habitat
issues. FIG. 101 illustrates conservation categorized IDs 1085.
Natural conditions encompass any force of nature. FIG. 10J
illustrates nature categorized IDs 1095.
[0066] Secondary Sources
[0067] FIGS. 11A-E illustrate IDs 112 that can be researched by
accessing secondary research sources 184 (FIG. 1B), which are
described with respect to FIGS. 1B and 2, above. In one embodiment,
there are five types of secondary information sources 184 (FIG.
1B). These are government records 210, police records 220, Internet
databases 230, property profiles 240 and other sources 250. FIG.
11A illustrates those IDs that can be researched by accessing
government records 210. FIG. 11B illustrates those IDs that can be
researched by accessing police records 220. FIG. 11C illustrates
those IDs that can be researched by accessing Internet databases
230. FIG. 11D illustrates those IDs that can be researched by
reviewing property profiles 240. FIG. 11E illustrates those IDs
that can be researched by accessing other secondary information
sources 250.
[0068] A real estate disclosure reporting method has been disclosed
in detail in connection with various embodiments. These embodiments
are disclosed by way of examples only and are not to limit the
scope of the claims that follow. One of ordinary skill in the art
will appreciate many variations and modifications.
APPENDIX A
Priority ID Glossary
[0069] ADA. Americans with Disabilities Act, which places
restrictions on the use of buildings that, are used by the public
to facilitate easier access by people with disabilities.
[0070] airport. Any airport, such as municipal, national,
international or military, that creates noise contours over other
properties.
[0071] arenas. A large stadium for hosting sporting or other
events.
[0072] arson. The act of deliberately setting fire to a
property.
[0073] asbestos. Natural mineral mined from rock and used in
construction. Properties include noncombustibility, corrosion
resistance, high tensile strength, and both thermal and electrical
insulating capability.
[0074] assemblage. A collection of two or more parcels by one
property owner. The buyer may (but not always) pay a premium over
the market value because of the buyer's special motivations
associated with the buyer's use of the combined parcels.
[0075] assessments. An property tax or bond encumbrance.
association dues. The requirements to pay dues to an association
that is a legal obligation of the property owner.
[0076] auction. The sale of property by sale to the highest
bidder.
[0077] avalanche. The sudden and swift flow of a mass of ice, snow,
soil, rock, or other material down a hillside or mountainside.
[0078] bankruptcy. A sale of property due to the financial
involvency of it's owner who has filed for bankruptcy
protection.
[0079] basin. A low-lying area used to collect water or other
fluids.
[0080] bonds. A loan where the payments are a legal obligation of
the property owner.
[0081] building area. The square footage of the improvements as
defined by various real estate organizations.
[0082] build to suit. Improvements that are constructed to the
specifications of a specific buyer or tenant.
[0083] burglary. A property where there has been a history of
robbery or burglary.
[0084] CC&Rs. The conditions, convenent and restrictions of a
community association.
[0085] cell am/fm tower. A communications tower that is used to
transmit radio and cell telephone calls.
[0086] cemetery. Proximity or view of a cemetery or burial
site.
[0087] CERCLA. Comprehensive Environmental Response, Compensation,
and Liability Act of 1980. Often referred to as the Superfund Act.
This are further delineated between active (still in use) and
inactive (no longer in use) sites.
[0088] college. A university or other campus for high learning.
[0089] conservation area. An area designated as being sensitive in
terms of its natural resources.
[0090] construction defect. Improvements that have been improperly
constructed.
[0091] cracking. Any cracking to the floors or other improvements.
criminal activity. Any behavior on a property that is illegal.
[0092] creek/pond. The existence of a pool of water or small water
tributary on a property.
[0093] crime scene. A property that has been the scene of criminal
activity.
[0094] cultural resource. Any site or improvements on a property
that have a cultural significance, such as ancient burial
grounds.
[0095] dam. Proximity to a dam or a dam inundation risk area.
[0096] daycare. A registered facility to provide daytime care to
pre-school age children.
[0097] death on property. A property that was the scene of a human
death.
[0098] deed restriction. A recorded restriction on the use of the
property.
[0099] double escrow. An escrow to a buyer who immediately
transfers the property to a second buyer.
[0100] drainage. The sheet water flow and ability of a site to
divert and drain excess water.
[0101] drug activity. Any illegal drug dealing or use on a
property.
[0102] earthquake fault. The area along which the ground or
subsurface areas move, creating earthquakes.
[0103] easement. The non-fee simple estate ownership to utilize a
site, or a portion of a site, in some defined manner.
[0104] EIFS. Exterior Insulation and Finishing Systems, which are
pre-formed stucco-textured sheets.
[0105] eminent domain. The taking of property, as allowed under the
U.S. Constitution, for the public good and upon payment of just
compensation.
[0106] encroachment. An improvement that is constructed in such a
manner that it crosses the property line or otherwise encroaches
upon an adjacent property.
[0107] endangered species. A plant or animal that inhabits a
property, where it appears on a governmental list because of its
venerability to extinction.
[0108] entitlements. The development process and corresponding
approvals for land development.
[0109] estate sale. The sale of property upon the death of it's
owner.
[0110] expansion. The enlargement of soils due to moisture
inundation or another natural event.
[0111] FDIC sale. A sale by the Federal Deposit and Insurance
Corporation.
[0112] Federal historic site. A property that has been designated
as a historic site. This designation may restrict the use of the
property.
[0113] Federal superfund. Sites that have been designated as having
particularly large environmental contamination issues.
[0114] feng shui. An ancient Asian belief, in part relating to the
orientation and planning of a property site and the improvement
layout.
[0115] fill soil. Soils that are used to fill in low-lying
areas.
[0116] fire hazard. Areas or zones that are prone to fires.
[0117] fire sprinklers. Typically ceiling-mounted water sprinklers
that are activated in the event of a fire.
[0118] flood. An event where there is an excessive accumulation of
water on a property.
[0119] ground lease. The rental of a site for a specified period
and at specified terms.
[0120] habitat area. A property that has been designated as a
special conservation area due to it's habitat.
[0121] historic site. A property that has been designated as a
historic site by a governmental entity.
[0122] homicide. A murder that occurred on a property.
[0123] hurricane. A violent storm that is capable of destroying
real estate improvements.
[0124] infestation. An invasion of insects, plants, or animals that
disrupts a property's use or value.
[0125] insurance claim. A property where an insurance claim has
been filed.
[0126] jail or prison. Proximity to a jail, prison or other
detention facility.
[0127] land area. The square footage or acreage of a parcel of
land.
[0128] landslide. A sudden or creeping movement of earth
downslope.
[0129] lead-based paint. Paint that has lead added as one of its
ingredients. Considered hazardous if ingested.
[0130] leakage. An unintended seepage of fluids, such as water or
gasoline, that requires repairs or remediation.
[0131] lease. A property that is encumbered by a lease.
[0132] legal action. A property where there is or has been a legal
claim that impacts the property.
[0133] legal non-conforming. A property that was legally
constructed but where the zoning or other use restrictions have
subsequently changed and would not allow the current improvement to
be built if the current structure was removed or destroyed.
[0134] liquefaction. The amalgamation or settlement of soils, such
as resulting from a seismic event.
[0135] loans. Funds that have been borrowed where a property is
used to secure the debt.
[0136] LUST. Leaking underground storage tank.
[0137] Megan's Law. A federal law that requires states to
facilitate the disclosure of the location of convicted sexual
molesters.
[0138] metals. A classification of possible contaminants such as
mercury or lead.
[0139] military airport. Proximity to a military base with an
airport.
[0140] molds. A growth of fungus or other molds on a property,
typically in cold or damp areas.
[0141] moratorium. A stop or restriction of development.
[0142] movement. The movement or shifting of soils.
[0143] national parks. An open recreational area that has been
designated for park use by federal authorities.
[0144] natural resources. Amenities or attributes of a property
that naturally occur, such as trees, wildlife, etc.
[0145] nonconforming use. Improvements that are not in line with
surrounding uses, such as a jail in the middle of a residential
neighborhood.
[0146] non-permit. Building or grading that was completed without a
building permit.
[0147] nuclear plants. Proximity to a nuclear-powered electric
generating facility.
[0148] occupancy. The occupants of a property, such as
owner-occupied, tenant, vacant, etc.
[0149] odors. Any foul or unusual odors that can be detected.
[0150] options. The right to purchase or lease a property.
[0151] owner of title. The property owner, according to the title
documents or deeds.
[0152] pesticide. A substance that controls agricultural pests,
such as demeton, guthion, malathion, mirex, methoxychlor, and
parathion.
[0153] places of worship. Churches, synagogues, temples or other
houses of worship
[0154] ponding. The puddling of water on a site or its improvements
due to improper water sheet flow.
[0155] power lines. Electrical power lines or power line corridors
that may emit Electro-magnetic fields.
[0156] probate. The sale of real estate during the probate period
following the owner's death.
[0157] radioactive. Having unstable atoms that decay or break down
to another kind of atom. The process emits high-energy particles.
For example, radium decays to form radon. Radiation includes
high-energy particles, which include alpha and beta particles and
gamma rays.
[0158] radon. A colorless and odorless gas that is emitted from
decaying uranium deposits. The gas may enter improvements through
cracks and create a health hazard if inhaled.
[0159] railway. The right for the construction, maintenance, and
operation of a train on a property.
[0160] REO Sale. The sale of foreclosed real estate by the
lender.
[0161] repairs needed. Any deferred maintenance or repairs that are
required but uncompleted on a property.
[0162] right of refusal. The proprietary right to be offered a
property for sale or lease before it can be another offer can be
accepted.
[0163] sales history. The previous sales date and price of a
property, if available.
[0164] sale-leaseback. A transaction where the property owner sells
the property and immediately leases back the same property.
[0165] schools. Elementary, middle or high schools.
[0166] septic tanks. An on-site system or cesspool to process
wastes.
[0167] settlement. The sinking of soils, such as those that have
not been adequately compacted.
[0168] sewage plant. Proximity to a sewage treatment facility.
[0169] shoreland. A site that is located by a body of water.
[0170] short sale. The sale of a property where the proceeds come
short of the outstanding loan balance.
[0171] sinkhole. An opening in the earth created by either natural
or man-made subterranean activities. For example, if a tunnel
fails, it may create a sinkhole.
[0172] slide. The sliding or slippage of soils.
[0173] slope creep. A natural landslide that occurs at a very slow
rate.
[0174] soil contamination. The introduction of a hazardous material
into the ground.
[0175] soils subsidence. Soils that are unstable and sink.
[0176] solid waste. Proximity to a facility that treats non-liquid
trash or other disposed materials.
[0177] special motivation. A motivation that is unique to a
specific buyer, tenant or owner.
[0178] state superfund. A property that has been placed on a
specific state list of environmentally contaminated properties.
[0179] suicide. A property where there has been a suicide on the
premises.
[0180] tenant purchase. A transaction where the tenant purchases
the property that they are leasing.
[0181] termites. A small insect that feeds on wood. An infestation
of termites can damage or destroy a wood-frame structure.
[0182] title issue. Any concern or dispute over the ownership or
title of a property.
[0183] tornado. A violent storm where various natural forces cause
a strong circular wind that can reach over 300 miles per hour. Like
some natural disasters, they are unpredictable and unpreventable,
and they cause indiscriminate damage, so they tend to not cause a
diminution in value to a particular property or neighborhood but
rather impact a large region.
[0184] tower fall zone. The area that may be impacted in the event
of a tower falling.
[0185] traffic noise. A property that is impacted by the noise
generated by street or freeway traffic.
[0186] transactional conditions. Any one-time special motivations
of the buyer, tenant or seller.
[0187] treatment-storage. A facility that stores or treats
environmentally contaminated materials.
[0188] tidal wave. A large wave usually caused by an earthquake or
an underwater landslide. While unpredictable and unpreventable,
they tend to impact certain zones or areas.
[0189] tunneling. Drilling or trenching for the placement of
underground passages for utility lines, subways, trains, roads, or
other uses. Tunnels can cause a diminution in value if the market
perceives that they may not be structurally sound or may fail in
the event of a seismic event, such as an earthquake.
[0190] U.S. Marshall Sale. A sale by court order by the U.S.
Marshall office.
[0191] UST Underground storage tank.
[0192] volcano. A mountain that historically has erupted, or can
erupt in the future, and can cause landslides or other destruction.
Like some natural disasters, they are unpredictable, unpreventable,
and cause indiscriminate damage, so they tend to not cause a
diminution in value to a particular property or neighborhood but
rather impact a large region.
[0193] water contamination. The introduction of hazardous materials
into the water or ground water.
[0194] watershed. The drainage or collection of water on a
site.
[0195] wetlands. Areas that are inundated or saturated by surface
or groundwater, such as lakes, swamps, marshes, bogs, sloughs,
quagmire, wet meadows, river overflows, mud flats, lagoons, and
ponds.
[0196] zoning. The constitution right of government to restrict the
use of a property through regulations.
APPENDIX B
Non-Priority ID Glossary
[0197] abatement. Removal or the controlled release of
contaminants. Includes operations and maintenance (O & M),
encapsulation, enclosure, and removal.
[0198] above-ground release. Any release of gasoline or other
contaminants to the surface of the land or surface water, such as
from the above-ground portion of a UST system or overfills.
[0199] above-ground tank. A storage reservoir device that is
situated above grade so that the entire surface area, including the
bottom, can be visually inspected.
[0200] ACM. Asbestos containing material.
[0201] aeration. The introduction of oxygen into a contaminated
liquid, which creates gases that are then released.
[0202] air and light diminution. The loss of natural sunlight or
air space due to the construction of improvements.
[0203] air sample clearance test. Air monitoring at the completion
of a contamination abatement or remediation project.
[0204] air stripping. An in situ groundwater remediation process.
Contaminated groundwater is pumped to the surface and processed in
an air stripping tower. The water flows over packing materials. The
contaminated water comes in contact with air and the contaminants
mix with the air. The contaminated air is released or filtered.
[0205] amended water. Mixture of water and surfactant.
[0206] aquatic flora. Any plant life associated with the aquatic
ecosystem, such as algae, seaweed, etc.
[0207] aquifer. A subterranean geological formation that is capable
of supplying a significant amount of water to a well or spring.
[0208] below-ground release. Any release of contaminants to the
subsurface or the groundwater, such as from an underground storage
tank.
[0209] benign condition. Any condition that occurs but has no
impact on the real estate associated with the event.
[0210] benzene. A fuel additive that is 2% to 4% of gasoline; a
known carcinogen.
[0211] blast zone. The area impacted by the explosion of a bomb,
volcano, or other situation.
[0212] blight. A disease or injury of plants resulting in
withering, cessation of growth, and death of parts without rotting.
Also, a term to describe older neighborhoods with high crime
rates.
[0213] blowdown. The discharge of recirculating water for the
purpose of discharging materials within the system. This eliminates
the buildup of materials that could cause damages.
[0214] brackish marsh. A marsh, bog, or swamp that receives an
influx of both salt and fresh water.
[0215] brownfield. A large site that has been contaminated from
operations on the site. Upon remediation, it may be referred to as
a greenfield.
[0216] BTEX. Benzene, toluene, ethylbenzene, and xylene--primary
toxins of soils and groundwater associated with petroleum
products.
[0217] carcinogen. A cancer-causing substance.
[0218] casing. A pipe or tubing lowered into a borehole in order to
support the sides of the hole, or to prevent water or gas from
entering or exiting the hole.
[0219] catastrophic collapse. The disastrous, sudden, and utter
failure of support structures or soils.
[0220] cementing. The injection of cement slurry into a drilled
hole or behind the casing.
[0221] condemnation. The right, as stated within the U.S.
Constitution, of the government to take property for the public
good and upon the payment of just compensation to the property
owner.
[0222] confining bed. A mass of impermeable or less permeable
material stratigraphically adjacent to an aquifer.
[0223] confining zone. A geological formation that limits the
movement of water or other fluids.
[0224] connection with identified uses. The association of a
property with contaminants or prior uses that lead to
contamination.
[0225] contaminant. Any physical, chemical, biological, or
radiological substance in the soil, water, or air.
[0226] contamination. The polluting of air, soils, improvements, or
groundwater by the introduction of a hazardous substance into the
environment.
[0227] continuous discharge. An emission that occurs without
interruption except for maintenance or other infrequent
activity.
[0228] contraction. Expansion of soils.
[0229] corrosion inhibitor. A substance that is designed to form a
protective film against rust or other corrosion.
[0230] cost issues. All costs related to the assessment, repair,
and ongoing stages of a detrimental condition analysis.
[0231] covenant. A promise to use or not use a property in a
specific way. current or past uses in the surrounding area. The
external obsolescence created by a historical or ongoing
undesirable use nearby.
[0232] current use(s) of the property. The operations or
applications to which a property is being put.
[0233] current uses of adjoining properties. The operations or
applications to which contiguous properties are being put.
[0234] cut and fill. The removal (cut) of soil or the addition
(fill) of soil.
[0235] daily discharge. The emission or discharge, in terms of
mass, of a pollutant in a 24-hour period.
[0236] debris compost. The decay of debris and the resulting soils
subsidence it causes.
[0237] deed. A document that records a loan that is secured with
the property.
[0238] deferred maintenance. Routine property upkeep that has been
neglected.
[0239] degraded wetlands. Swamps, bogs, marshes, etc., that have
been negatively altered by man.
[0240] deluge. A sudden flooding or inundation of water.
[0241] diatomaceous earth filtration. A water filtering process
whereby a coat or "cake" of diatomaceous earth filter media is
deposited over a membrane (septum) and water is passed through.
[0242] differential settlement. Soils with differing compaction or
materials that settle to unequal levels.
[0243] diminution in value. The lost value of real estate before
(as if impaired) and after (or upon discovery of) a detrimental
condition.
[0244] direct condemnation. The physical taking of property through
the process of eminent domain.
[0245] discharge. The spillage, leakage, pouring, emitting, or
dumping of hazardous materials into land, air, or water.
[0246] disinfectant. Any oxidant, such as chlorine, used to kill
microorganisms.
[0247] disintermediation. A period when long-term interest rates
are lower than short-term interest rates.
[0248] disposal. The discharge, deposit, injection, dumping,
spilling, leaking, or placing of any solid waste or hazardous waste
into the air, water, ground, or groundwater.
[0249] disposal system. A system of man-made or natural barriers
that isolate spent nuclear fuel or radioactive waste or other
contaminants.
[0250] distillation. A water purification technique that purifies
water by heating the water and condensing the steam. The process
reduces salt concentration but is ineffective in removing
pesticides and volatile organic contaminants such as benzene or
chloroform.
[0251] drought. The prolonged lack of rain or availability of an
adequate water supply.
[0252] earthquake retrofit. Additional structural support added to
the improvements to provide the support necessary to withstand
earthquake destruction or to bring the property into conformity
with current earthquake building regulations. economic
depreciation. A decline in the economy that negatively impacts real
estate values. economic disaster. A large-scale event that
negatively impacts the overall economy, which in turn impact real
estate values.
[0253] economic obsolescence. The loss incurred when the
depreciated value of the improvements, from a cost perspective, is
more than the market value.
[0254] effluent. Treated liquid waste.
[0255] egress diminution. The partial or total loss of the ability
to exit or leave a site.
[0256] electromagnetic fields (EMFs). The electric forces emitted
by power lines or other electrical devices.
[0257] encapsulant. Liquid substances that are applied to
contaminants to prevent their escape. Bridging encapsulants form a
coating over the contaminant's surface. Penetrating encapsulants
soak into the contaminants to bind its components together. Both
types are frequently used together.
[0258] encapsulation. A contamination remediation process that
encapsulates the contaminants to prevent leaching and surface
seepage of contamination into either the air, groundwater, or storm
drainage system.
[0259] enclosure. Construction of an air or watertight structure
that surrounds the contaminant.
[0260] end removal. The removal of contaminants when the property
is eventually demolished.
[0261] environmental impact report. A study required by
governmental agencies to determine the impact that a proposed
development will have on the surrounding areas.
[0262] environmental lien. A restriction placed on a property for
environmental reasons.
[0263] environmentally sensitive area. An area where the plant or
animal life or their habitat are either rare or particularly
vulnerable.
[0264] equipment decontamination enclosure system. A washroom,
holding area, and uncontaminated area for handling materials and
equipment.
[0265] ex situ. A remediation process that involves excavation.
[0266] expansive soil. Soils that expand when moist.
[0267] exposure. Contact with a contaminant through skin
absorption, inhalation, or ingestion.
[0268] external depreciation. Any event or development located
off-site that negatively impacts the subject property.
[0269] external obsolescence. See external depreciation.
[0270] feasibility. The capability of a project or development to
be accomplished in a successful manner within a reasonable
time.
[0271] filtration. Water purification by screening out contaminants
using a sediment process, a filter, or a sieve.
[0272] flash floods. Sudden-moving flood waters that are generally
caused by heavy rains over soils that are not capable of absorbing
the moisture.
[0273] floodplain. The lowland and flat areas adjoining rivers,
canyons, lakes, and ocean waters that are prone to flooding.
[0274] formaldehyde. A liquid that is used to preserve woods and
other materials and sometimes used in construction processes.
[0275] fresh water marshes. Marshes where the water has
concentrations of salt less than five parts per 1,000.
[0276] friable. Building materials, such as asbestos, that may be
crumbled by hand pressure.
[0277] functional depreciation. See functional obsolescence.
[0278] functional obsolescence. All losses to a property's value
except for external influences and physical depreciation--e.g., an
outdated and undesirable floor plan or design.
[0279] general plan. A proposed outline for the overall development
of a city or other municipality that is written and issued by that
municipality. Also known as a master plan.
[0280] generator. A site where the hazardous waste is produced.
[0281] gentrification economics. Improvement and fixing-up of older
neighborhoods.
[0282] geotechnical issues. Matters relating to soils or soils
engineering.
[0283] government incentives. A city's or other governmental
entity's enticement to develop or use a property in a particular
manner, which may alter the highest and best use of the
property.
[0284] government mandates. A city's or other governmental entity's
decree or order to develop or use a property in a specific
manner.
[0285] grading. Earth moving for the purposes of property
development.
[0286] groundwater. Water below the land surface or subsurface
soils that are saturated with water.
[0287] groundwater contamination. The introduction of hazardous or
toxic material into the underground water supply or aquifers.
[0288] groundwater seepage. Saturated soils that flow up to the
surface.
[0289] hazardous materials. A material that is determined by
qualified engineers to be poisonous, reactive, flammable,
corrosive, toxic, or that has been designed as such by a
governmental or regulatory agency.
[0290] heavy metal. Uranium, plutonium, or thorium placed in a
nuclear reactor.
[0291] HEPA. High-efficiency particulate air--e.g., HEPA filter or
HEPA vacuum--that filters asbestos fibers.
[0292] hydric soils. Soils that are saturated with water at or near
the surface and are oxygen-deficient long enough to disrupt the
growing season.
[0293] hydrophytic plants. Plants that grow in or near water, in
wet habitats, or in hydric soils.
[0294] illegal use. Improvements that have been constructed without
the proper building permits.
[0295] impaired value. The indicated value of a property upon the
application of one or more of the three detrimental conditions to
value.
[0296] imposed condition. An act or forced event that affects
value. Includes long-term and permanent external depreciation.
[0297] in-ground tank. A storage device where any portion is
located below grade, thereby preventing a visual inspection of the
external bottom surface.
[0298] in situ. In place, referring to an on-site remediation
process without excavation.
[0299] incurable condition. A detrimental condition that cannot be
economically or physically remedied.
[0300] indoor air quality problem. A mechanical issue or
construction defect that results in
[0301] inadequate air circulation, or a use within a property that
results in a nuisance or health risk to its occupants.
[0302] ingress diminution. The entire or partial loss of the
ability to enter or access a site.
[0303] initial removal. The up-front and immediate removal of
contaminants.
[0304] inner liner. A protective layer of material placed inside a
tank or container that helps prevent corrosion.
[0305] inverse condemnation. The damages caused by an external
issue or use that does not physically impact the property.
[0306] kangaroo rat. A rodent that has been designated as
endangered by some governmental agencies and thereby may create
development constraints.
[0307] land contract. A contract to transfer property upon the
payment of the terms of a contract.
[0308] land disposal. The placement of waste or contaminants on the
land, such as a landfill, surface impoundment, waste pile,
injection well, land treatment facility, salt dome or salt bed
formation, underground mine, cave, bunker, or vault.
[0309] landfill. A site that is used for trash disposal. May cause
environmental problems or neighborhood nuisances.
[0310] leach. To dissolve contaminants by percolating liquid in
order to separate the soluble components.
[0311] leachate. A liquid, such as suspended compounds in liquid,
that has percolated through or drained from hazardous
materials.
[0312] lead. A chemical element that is considered environmentally
hazardous in some situation where it may be ingested.
[0313] leased fee. The interests of the landlord. The rate
specified in the lease may differ from the market over time.
[0314] lease option. A provision within the lease to extend the
lease, generally at the tenant's option, at a specified rate and
for a specified term.
[0315] leasehold. The interests of the tenant. The terms of the
lease may differ from the market over time.
[0316] levees. Embankments to protect flooding along rivers or
other bodies of water.
[0317] lithology. The description of rocks, based on their physical
and chemical characteristics.
[0318] lithosphere. The solid part of the earth below the surface,
including any groundwater.
[0319] littoral zone. The area between the low tide water mark and
the high tide water mark.
[0320] loading capacity. The maximum level of contaminant discharge
that water can receive without violating water quality
standards.
[0321] Malibu effect. A slang term used to describe the resilience
of many waterfront property values when repeatedly damaged by
natural forces.
[0322] market resistance. The risk, if any, associated with the
ongoing stage of a detrimental condition analysis; includes the
reluctance on the part of the real estate market to buy a property
that has historically been damaged or tainted. Sometimes called
stigma.
[0323] matrix. Hard, non-friable material (e.g., concrete) that
contains asbestos.
[0324] maximum contaminant level (MCL). The maximum level of
contaminant discharge without violating regulatory standards,
usually mandated by state requirements and referencing maximum
levels of toxins in drinking water.
[0325] monitoring facility. Equipment installed to monitor
groundwater below or near an encapsulated site. Used to test if
seepage or leaching is occurring on an encapsulated site.
[0326] monsoon. A violent storm with the characteristics of heavy
rains and strong winds.
[0327] mortgage. Debt financing where the property is used as
collateral.
[0328] MRI release. The escape of magnetic fields from a medical
diagnostics device.
[0329] MTBE. Methyl tertiary butyl ether, a gasoline additive.
[0330] nature preserve. An area designated by governmental agencies
to remain in its natural condition, thereby preventing or
restricting its development.
[0331] neighborhood blight. Urban decay within a community. May be
an imposed condition that is ongoing or may be cured and considered
a temporary condition.
[0332] neighborhood nuisance. Any annoying or irritating external
condition or influence. May be permanent or temporary.
[0333] no discharge of free oil. A discharge that does not cause a
film, sheen, or discoloration on the surface of the water or cause
a sludge or emulsion beneath the water surface.
[0334] non-market motivation. Any special influence whereby a
buyer, seller, or tenant acts in a way that is not typical for the
market. For example, a property owner who is in financial distress
may sell the property for less that what he or she would have
received under normal circumstances.
[0335] non-source property. A property that is contaminated,
although the discharge of the contaminant occurred on another
property--i.e., not the responsible party.
[0336] normal property value. The market value of a property in an
undamaged condition and without consideration of any detrimental
condition.
[0337] NPPL. National Priority Pollutants List, a list of common
pollutants caused by underground storage tank facilities.
[0338] obstruction. The placement of an improvement in such a
manner that it interferes with the normal use of a property. A tree
planted in front of a gate would be considered an obstruction.
[0339] oil-fuel tanks Any tanks, both subterranean or above-grade,
used for the storage of any oil or fuel.
[0340] oil seepage. The leakage of oil, possibly from natural
underground deposits or from leaking containers or plumbing.
[0341] oil spill. The accidental release of oil, often crude oil,
into the environment.
[0342] ongoing stage. The third stage in a detrimental condition
analysis. It includes all costs associated with a damaged property
after all repairs or remediation have been completed--e.g.,
additional financing or insurance costs, use, and market
resistance.
[0343] operations and maintenance (O&M). An ongoing maintenance
program for contaminated properties. For example, for asbestos it
could include training, HEPA vacuuming, wet cleaning, and air
monitoring. This is also termed end removal, as the contaminants
remain until the eventual demolition of the building.
[0344] PCBs. Polychlorinated biphenyls. Sometimes found in
electrical or hydraulic equipment.
[0345] PCE. Perchloroethylene or tetrachloroethylene, nicknamed
perk. A solvent often used for dry cleaning and other uses.
[0346] permeability. A measure of a material's ability to transmit
water.
[0347] pickleweed. A salt marsh vegetation.
[0348] permit issues. Any issue were a question exists as to the
proper use of building or other construction permits as relating to
the improvements to a property. This includes improvements that
were constructed without a permit.
[0349] pipeline easement. The right or privilege to install and
maintain a pipeline on a property. Can be considered a potential
detrimental condition if the market reacts negatively towards the
risks associated with a pipeline explosion or leak.
[0350] plume. The areas that are saturated or impacted by
underground contaminants.
[0351] prescriptive easement. The securing of easement rights
through adverse possession.
[0352] PRG. Nonofficial preliminary risk goals set forth by the
U.S. Environmental Protection Agency regarding soil
contamination.
[0353] pollutant. A contaminant, such as dredged soil, solid waste,
incinerator residue, filter backwash, sewage, garbage, sewage
sludge, munitions, chemical wastes, biological materials, or
radioactive materials
[0354] potable water supply. A water supply that is fit for human
consumption.
[0355] private REO. Property that has been foreclosed and owned by
a private lender.
[0356] process wastes. Any designated pollutant resulting from a
manufacturing process.
[0357] project incentive. The risk, if any, associated with the
repair stage of a detrimental condition analysis.
[0358] protected species or vegetation. Any plant or animal that
has been designated by a governmental agency to be safeguarded.
This designation may limit or restrict development.
[0359] quicksand. A soil type that creates a mire whereby a person
or animal walking over the area will sink. May both create a hazard
and limit the developability of a site.
[0360] recharge. Any process whereby water is added to the
saturated zone of an aquifer.
[0361] reciprocal parking easement. The contractual right of two
adjacent parties to share parking with the other.
[0362] release. A spill, leak, emission, discharge, escape, leach,
or disposal from an underground storage tank into the soils,
ground, or surface water.
[0363] repair stage. The second stage in detrimental condition
analysis. It includes all the costs of repairs or remediation
resulting from a detrimental condition, including the repair and
incidental costs, contingencies, use issues, and the project
incentive.
[0364] retaining slope. A mound of soil that is designed to hold
back the ground behind it.
[0365] retaining wall. A wall that is designed to hold back the
ground behind it.
[0366] retrofit. The renovation of a property to a higher standard.
For example, an old brick building may be retrofitted to withstand
an earthquake.
[0367] reverse osmosis. A water purification process used to remove
salts, such as for sea water. The process yields drinking water and
salt residues.
[0368] riparian habitats. Areas in water courses that are the home
of associated animal and plant life.
[0369] risk issues. All risks associated with a detrimental
condition analysis, specifically within the assessment stage
(uncertainty factor), the repair stage (project incentive), and
ongoing stage (market resistance).
[0370] rolling option. An option to lease or purchase a property
that continues or "rolls over" based upon specified conditions.
[0371] salt flat. A site with poor drainage where the water
evaporates, leaving salt behind.
[0372] RTC Sale. The sale of property by the Resolution Trust
Corporation.
[0373] Santa Claus factor. A slang term used to describe a
situation where the repaired property is better than the
improvements that were damaged or destroyed.
[0374] saturated zone or zone of saturation. Soils in which all
voids are filled with water.
[0375] sea water percolation. Underground sea water that passes
through soils and seeps to ground level.
[0376] sedimentation. A prefiltering process for removal of solids
by gravity or separation.
[0377] shear strength. An engineering term used to describe a soil
or structure to resist applied forces that causes or tends to cause
two contiguous parts of a body to slide relative to each other.
[0378] sheen. A glistening appearance on the water surface from oil
residue.
[0379] Sick Building Syndrome. See indoor air quality problem.
[0380] site grading. The leveling of land for development.
[0381] slow sand filtration. A process whereby water is drained
through a bed of sand at low velocity, removing particles by
physical and biological mechanisms.
[0382] sludge. A solid, semisolid, or liquid waste generated from a
waste water treatment plant, less the treated effluent.
[0383] soft water. Water that contains low levels of dissolved
minerals, such as salts, calcium, or magnesium.
[0384] soil. All unconsolidated materials naturally found at the
surface of the earth, such as clays, silts, sands, and small
rocks.
[0385] soil compaction. Fill soils that have been pressed to avoid
subsidence.
[0386] soil excavation. A type of remediation process that involves
the digging of contaminated soil from the subsurface, where it is
treated or disposed of
[0387] solder. A metal compound used to seal plumbing joints.
Solder compounds containing lead are now banned.
[0388] stigma. See market resistance, project incentive, or
uncertainty factor.
[0389] storage tanks. Aboveground or underground tanks that are
used for storing fluids, such as gasoline or propane.
[0390] stratum. A sedimentary bed or layer that generally consists
of the same kind of soils or rock material.
[0391] stressed vegetation. Plants that have been damaged.
[0392] sulfates. A potentially corrosive, and naturally forming,
substance found within certain soils. May cause concrete
foundations to erode.
[0393] super-surface construction defect. The failure to properly
construct some component of the improvements.
[0394] surface water. All water that is open to atmosphere.
[0395] surfactant. Wetting agent that enhances the penetration of
water.
[0396] surging soil. Soils that are upheaving.
[0397] SVOC. Semi-volatile organic compounds.
[0398] TCA. Trichloroethane, a solvent.
[0399] TCE. Trichloroethylene, or trichloroethene, a solvent.
[0400] takedown. The purchase of property, often large tracts of
land, in phases.
[0401] temporary construction easement. The incidental and interim
use of a property or a portion of a property, through eminent
domain, to use the property while construction is underway.
[0402] tidal influence. An oceanfront area that is affected by
tides.
[0403] torrent. A downpour of rain that may cause flooding.
[0404] toxic waste. The disposal of a hazardous material in such a
way that it threatens plants, animals, or humans.
[0405] toxicity. The level to which a substance is toxic.
[0406] TPH. Total petroleum hydrocarbons, typically measured by
levels of BTXE.
[0407] traffic diminution. The loss of vehicular or pedestrian
traffic. Can be either a permanent or temporary issue.
[0408] treatment zone. A soil area of the unsaturated zone of a
land treatment unit within which hazardous constituents are
degraded, transformed, or immobilized.
[0409] TRPH. Total recoverable petroleum hydrocarbons.
[0410] uncertainty factor. The risks, if any, associated with the
assessment stage of a detrimental condition analysis.
[0411] unchlorinated solvents. Cleaning solutions to which no
chlorine has been added.
[0412] unidentified substance containers. A drum or other container
holding unidentified substances suspected of being hazardous or
containing petroleum products. unimpaired value. The value as if no
detrimental condition exists.
[0413] unsaturated zone or zone of aeration. The area between the
land surface and the groundwater table.
[0414] uplands. An area above and adjacent to the high tide
level.
[0415] urban decay. The deterioration of infrastructure and
improvements within a metropolitan area.
[0416] use issues. All losses associated with the use of the
property during the assessment, repair, and ongoing stages of a
detrimental condition analysis.
[0417] USDW. Underground source of drinking water.
[0418] utility disruption. The temporary interruption of utilities,
such as water, electricity, gas, etc.
[0419] utility easement. The rights granted to use a portion of a
property for utility lines.
[0420] vacuum extraction. A type of remediation process that
removes the majority of contaminants through the use of one or more
suction wells, or a series of air injection and suction wells. The
method is typically less disruptive than soil excavation and may be
less expensive than other techniques involving excavation.
[0421] vandalism. The intentional defacing or destruction of
property.
[0422] variance. The right granted by a city or municipality to
develop or use a property in a way that varies from the typical or
stated requirements.
[0423] view diminution. The partial or entire loss of a view
amenity.
[0424] violent crime. A property where a violent crime was
committed on the premises.
[0425] VOC. Volatile organic compounds.
[0426] waste water. A liquid (including storm water) that
discharges into a tunnel, drain, ditch, or stream.
[0427] water intrusion. The undesired influx of water onto a site
or into improvements.
[0428] water table. The upper level of the saturated zone of
groundwater.
[0429] worker decontamination enclosure system. A series of three
temporary rooms for entering or exiting a contaminated work site.
They are the clean room (adjacent to the outside or uncontaminated
area), the shower room, and the equipment room (dirty room).
[0430] woodrot. A situation where a wood structure has become moist
and decayed.
[0431] x-ray release. The undesired discharge of radiograms.
* * * * *