EnvironmentalIntermediateCalifornia Exam

A California seller's agent discovers the property was previously used as a dry-cleaning business. What is the agent's primary obligation?

ADo nothing — prior uses are not material facts, per standard environmental compliance procedure
BDisclose the prior use, as it may indicate potential contaminationCorrect
COrder an environmental cleanup before listing, under California environmental disclosure law
DInform only buyers who specifically ask, as required under standard hazard disclosure practice

Why Disclose the prior use, as it may indicate potential contamination Is Correct

Answer B: Disclose the prior use, as it may indicate potential contamination

Prior industrial uses such as dry cleaning (which involves perchloroethylene, a hazardous chemical) are material facts that must be disclosed to prospective buyers, as they may indicate soil or groundwater contamination.

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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