Three Mile Island Huricane Andrew Destruction Flood Damage Landslide Damage

The Hamilton family had saved for years and was excited about purchasing their first home.  In their excitement, they failed to order a REDreport. If they had, they would have learned that the house had been built on a landfill and had a history of flooding.  Also, a convicted criminal lived in the neighborhood.  The property also had asbestos and lead-based paint.  A REDreport would that told them all this, and much more.  Their dream home now became their ultimate nightmare.

RED: Real Estate Disclosure®

Real estate transactions often involve large sums of money and significant due diligence.  A buyer, broker, agent, lender, inspector or appraiser can inspect a property “On-Site”; however, many characteristic will go unknown without also conducting an investigation “On-Line”.

At, you can input a street address of any property in the United States, and within seconds get a report that searches dozens of databases to learn more about that property’s characteristics, such as neighborhood characteristics, pipelines, environmental hazards and natural hazards.

There are 20 Questions® that should be addressed with every real estate transaction or appraisal. 


The Welbilte Group purchased commercial property assets. They recently acquired a shopping center at a "bargain". Because of time constraints, they and their lenders did minimal due diligence. A REDreport would have revealed that a governmental agency had found that a prior dry-cleaner tenant had illegally dumped solvents on site and the clean-up costs exceeded the value of the property. The center also sat on an earthquake fault and a building moratorium prevented expanding the center. Their investments and loans were going on a one-way trip south.

The Real Estate Disclosure Seminar is offered nationally through the Appraisal Institute for all real estate professionals, including appraisers, brokers, agents, inspectors, lenders and attorneys.  Many of the issues discussed at the seminar are available in the Q&A section.  For those that require disclosure or due diligence services, there is a List of Consultants who have completed the training.

On-line research is essential for a full disclosure, as many critical issues may not be observable on-site.  Using satellite mapping, GIS and database retrieval systems, the REDreport has a Search Criteria that covers 34 issues and databases that may impact the property or the surrounding areas.  After ordering a REDreport, the terms and acronyms from the on-line search are listed in the Glossary.  Of course, care should be taken in reading the REDreport disclaimer. With all real estate disclosure issues, if required a competent real estate attorney should be consulted.


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