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Is this an adverse condition (environmental condition) or defered maitance?

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Not an environmental issue

Definitely not an environmental issue. It is a health and safety issue. I would call for repair if it is for VA, FHA or Fannie Mae. Otherwise I would do as Steve suggest and contact the lender. But in any case, clearly outline the problem as best you can within your own expertise.
 
Describe what you see, what you smell, all of what you were told by the property owner, and include adequate photos.......so that a CheckBox 4 designation lets the client know that THEY have some obligations to secure outside expertise to assist their information gathering and which then allows their business decision to be made.......without any specific need for you to do anything else.

This is a CB4 situation !
 
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