What are the appraisal procedures for identifying soil contamination?

Soil Contamination refers to the presence of manmade chemicals or other alterations to the natural soil environment.  Conditions that indicate soil contamination include the existence of underground storage tanks used for heating oil, pools of liquid, pits, ponds, lagoons, stressed vegetation, stained soils or pavement, drums or odors. 

The Appraiser must check readily observable evidence of soil contamination and hazardous substances in the soil. The Appraiser must report the proximity to dumps, landfills, industrial sites or other sites that could contain hazardous wastes that may have a negative influence on the marketability and/or value of the subject property. 

For additional information see Handbook 4000.1 II.D.3.c.iv.(M) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04101