A 1978 ranch home is on the market. During inspection, the buyer's environmental specialist samples the wall insulation — a foam product widely installed during the late-1970s energy push and largely abandoned after Consumer Product Safety Commission concerns in the early 1980s. Lab analysis confirms the foam is off-gassing formaldehyde at levels exceeding indoor-air guidelines. Remediation could cost $10,000 to $30,000. The seller now must disclose this specific environmental issue, and the buyer wants to negotiate accordingly. Which named environmental concern is at issue with the foam insulation?
Correct Answer
D) Urea-formaldehyde foam insulation concern
The foam is from the late-1970s energy era, off-gasses formaldehyde, and corresponds to the product the CPSC targeted in 1982. The specific named concern for that formaldehyde-emitting foam wall insulation is the urea-formaldehyde foam insulation concern (UFFI).
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The Closing Disclosure must be provided to the borrower at least three business days before closing. If the closing is scheduled for Friday, and Saturdays and Sundays are not business days for this lender, when is the latest the borrower can receive the Closing Disclosure?
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