Environmental
A Covenant Not to Sue (CNTS) from a state environmental agency provides what benefit to a buyer of contaminated property?
AA guarantee that no contamination exists
BProtection from state enforcement actions related to specified contamination when cleanup standards have been met✓ Correct
CFull exemption from all environmental liability
DA tax credit for environmental cleanup costs
Explanation
A CNTS is a formal agreement by a state environmental agency to refrain from bringing enforcement actions related to specified contamination on a property where cleanup has been completed to applicable standards, providing liability certainty for the buyer.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
VarianceOfficial 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.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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