It’s amazing to hear about the various new issues real estate agents and the public are encountering in 2008. In the past, most of the real estate issues we’ve encountered have been related to sex offenders, synthetic stucco, pressure treated lumber, lead-based paint and radon gas. Now, we are dealing with issues and questions related to “meth” houses. The North Carolina Real Estate Commission has addressed these issues and questions related to “meth” houses in the 2008-2009 Mandatory Update Course. Let’s read what the NC Real Estate Commission has published.

“Meth” Houses

Another topic which has garnered much press in the past few years are properties in which the occupants manufactured methamphetamine, a highly addictive controlled substance. It is estimated that concocting just one pound of methamphetamine can generate five to seven pounds of hazardous waste, including hydrogen chloride gases, which gases, fumes and chemicals can seep into the walls, air vents, filters, carpets, draperies, appliances and other household components. The waste byproducts could have been dumped on or around the property, contaminating the soil, septic system and ground water. According to a May 2005 Real Estate Bulletin article, there were only 9 meth lab “busts” in North Carolina in 2000, which had increased to 177 in 2003, 322 in 2004, and 121 in the first 3.5 months of 2005.

Once law enforcement eliminates the illegal activity, the Health Department is notified which in turn notifies the property owner that remedial action is required. The Department of Health and Human Services has established decontamination standards in hopes of assuring that properties previously used to manufacture meth are reasonably safe for human habitation. The rules require a “responsible party,” i.e., an owner, lessee, operator or other person in control of a residence or place of business previously used to manufacture methamphetamine, to:

1) assess the level of contamination and scope of necessary remediation before beginning to

decontaminate;

2) decontaminate the property; and

3) document both the pre-decontamination assessment as well as the remediation.

The foregoing documentation must be retained by the local health department for three years.

What are a licensee’s responsibilities? It could well be that brokers acting as property managers or listing agents for absent owners or other licensees might be viewed as “persons in control of a residence or place of business” under the rules which require responsible parties to remediate, although the law does not specifically address this issue. Due to potential lingering health consequences inherent in a property formerly used to manufacture methamphetamine, a broker must disclose the fact that the property was a meth lab if the broker knows or should have known, unless remediation has been completed and can be properly documented. Whether a broker “should have known” will be determined on a case-by-case basis.

The Commission has not said that a broker must check with the local health department, local law enforcement or the SBI every time the broker takes a listing or agrees to manage a property. However, if a broker has reason to suspect that a property was used for the illegal manufacture of drugs, s/he should minimally contact the local law enforcement agency or health department to see if they have any records or information. In time, it will be easier to check whether a property was used for the illegal manufacture of drugs due to a new website maintained by the Department of Justice. One may go to www.usdoj.gov/dea/seizures/ and click on any given state to find property addresses of “…locations where law enforcement agencies reported they found chemicals or other items that indicated the presence of either clandestine drug laboratories or dumpsites.” The website cautions that the listed information was not gathered by the Department of Justice, and that persons should contact their local health department or law enforcement agency to confirm information on any given address. The site also provides an email address where one may send notice if a property has been incorrectly listed.

“Meth” houses are only one of the many real estate issues in North Carolina. Our future articles will discuss more of the everyday situations we are experiencing in North Carolina Real Estate. If you have questions or comments, please e-mail me at bgallagher@superiorschoolnc.com or call 704-488-4814.