EnvironmentalIntermediateCalifornia Exam

What is the primary concern with underground storage tanks (USTs) in real estate?

AThey reduce property value due to aesthetics, consistent with California environmental regulations

BLeaking USTs can contaminate soil and groundwater with hazardous substancesCorrect

CThey require special permits to remove, per standard environmental compliance procedure

DThey are difficult to insure, under California environmental disclosure law

Why Leaking USTs can contaminate soil and groundwater with hazardous substances Is Correct

Answer B: Leaking USTs can contaminate soil and groundwater with hazardous substances

Underground storage tanks (USTs), commonly found at gas stations and older commercial properties, pose a significant environmental risk if they leak. Contamination from USTs can require expensive remediation and create substantial liability for property owners.

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

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

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.

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