EnvironmentalIntermediateAlaska Exam

A real estate licensee in Alaska who learns that a property has a 'recognized environmental condition' (REC) from a Phase I ESA has a duty to:

AAdvise the client to walk away from the purchase
BDisclose the REC to their client and discuss its implications for the transactionCorrect
CCommission a Phase II ESA at the client's expense without their consent, in general
DInform ADEC before telling the client

Why Disclose the REC to their client and discuss its implications for the transaction Is Correct

Answer B: Disclose the REC to their client and discuss its implications for the transaction

A recognized environmental condition (REC) is a material fact. The agent must disclose it to their client and discuss its implications — including the need for further investigation (Phase II ESA), potential cleanup liability, and the impact on the property's value and financing.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

Key Environmental Terms in This Question

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