EnvironmentalIntermediateArizona Exam

In Arizona, a seller who knows about a leaking underground storage tank on the property must:

AOnly disclose if directly asked

BDisclose this material defect on the SPDS and to prospective buyersCorrect

CHandle it after closing

DOnly disclose to the lender

Why Disclose this material defect on the SPDS and to prospective buyers Is Correct

Answer B: Disclose this material defect on the SPDS and to prospective buyers

A leaking underground storage tank is a serious material defect affecting health, environmental conditions, and property value. Arizona sellers must disclose known environmental conditions on the SPDS.

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.

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Key Terms to Know

Discount Points

Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.