Environmental
An Arizona seller is aware that the property was previously used for a 'junkyard' operation for 20 years and may have buried waste. Regarding disclosure, the seller should:
ANot mention it since it was long ago and may not be an issue now
BDisclose this prior use on the SPDS as it represents a material potential environmental condition✓ Correct
COnly disclose to the buyer's lender, not the buyer
DHave the property tested before listing and disclose only confirmed contamination
Explanation
Prior uses suggesting potential contamination (junkyard, industrial, gas station) are material facts that must be disclosed on the SPDS. Sellers cannot wait for confirmation of contamination—the prior use itself is a material fact.
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