EnvironmentalIntermediateCalifornia Exam

What is a 'brownfield' in real estate development?

AAgricultural land that has not been farmed recently, as required under standard hazard disclosure practice

BA previously developed site with actual or potential environmental contamination that may complicate redevelopmentCorrect

CA site with poor soil quality for construction, consistent with California environmental regulations

DA property with deed restrictions limiting commercial use, per standard environmental compliance procedure

Why A previously developed site with actual or potential environmental contamination that may complicate redevelopment Is Correct

Answer B: A previously developed site with actual or potential environmental contamination that may complicate redevelopment

Brownfields are previously developed properties that have actual or suspected environmental contamination from prior uses (former gas stations, dry cleaners, industrial sites). Federal and state brownfield programs provide funding and liability protections to encourage cleanup and redevelopment of these sites.

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.

Key Environmental Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

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Key Terms to Know

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Zoning

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

Comparable Sales (Comps)

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

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