Realtors® can be liable for failing to disclose meth manufacturing

Methamphetamine is a highly addictive, synthetic illegal drug that has swept the nation. Meth production creates very hazardous conditions in a property and generally results in a hazardous residue that can cause health concerns. Unlike many states, Pennsylvania has no statute that specifically requires disclosure of a former “meth lab” to potential buyers or renters; however, that doesn’t mean there aren’t disclosure issues.

Sellers are already required to disclose hazardous substances and environmental concerns in their seller disclosure statements, so they would need to disclose meth production based on those issues. As a real estate licensee, if you are aware that a property was used in the manufacturing of meth, or you have a reasonable basis to suspect that it was and the seller hasn’t disclosed that information, you need to disclose that condition to the buyer. Buyer and seller agents who fail to disclose material defects they have “actual” knowledge of can be held liable under the Real Estate Seller Disclosure Law. 

While a strong suspicion does not constitute actual knowledge, a jury may find the circumstantial evidence sufficient to find that actual knowledge existed. Further, as a buyer agent, you may wish to inform your client of the issue so the buyer can conduct an inspection for the presence of meth, or to check the address against the United States Drug Enforcement Administration’s National Clandestine Laboratory Registry to see if a property has been identified as methamphetamine production facility. This type of pre-emptive measure is similar to informing clients of their ability to check Megan’s Law, or when we advise of the problems with stucco or other issues that buyers may not suspect as potential problems. 

Signs of a meth lab to be aware of:

• A strong chemical odor similar to cat urine and soiled baby diapers may be present.
• The presence of older model pick-ups, vans and rental/moving vans. Additional signs may include items being kept covered in the vehicles or chemical odors coming from the vehicles.
• Laboratory glassware, discarded pseudoephedrine or Sudafed boxes or other chemical containers.

Fortunately, Pennsylvania does not have the same level of methamphetamine use or manufacturing as many western and mid-western states, however law enforcement confirms the eastward movement of meth production. In 2005, 12 kilograms of meth were seized by federal agencies in Pennsylvania compared to Texas, which had a staggering 2,894 kilograms of meth seizures.

If you suspect a meth amphetamine lab do not investigate it yourself. Call your local police or the PA Office of the Attorney General for assistance. The attorney general’s office can be contacted at 717-787-3391.