Being that Colorado is an area with a high radon propensity, it is important to know how radon can impact a real estate transaction. Sellers, lenders, and developers need to be aware of the risks of radon and how it can impact their commercial real estate deal. Radon testing can be completed to assess whether a particular building has elevated levels and radon mitigation, if necessary, can often be installed at relatively inexpensive costs on both new and existing structures.
Sellers, if aware of a radon hazard, must disclose such hazards to a buyer even when a radon mitigation system is in place. Lenders need to be aware of all environmental risks and more often than not will have radon addressed in some form as part of a Phase I Environmental Site Assessment. Oftentimes, depending on the financing, radon testing may be required. Developers must be aware that certain communities require radon mitigation systems for new construction. When addressed appropriately, radon risks are easily identifiable and more importantly, relatively inexpensive to mitigate.
For full discussion on radon and real estate deals, read the article Radon Affects Real Estate Deals as published by the Colorado Real Estate Journal.