Environmental
An underground storage tank (UST) on a Louisiana commercial property is a concern because:
AUSTs increase property value for industrial buyers
BUSTs may leak petroleum products, contaminating soil and groundwater✓ Correct
CUSTs are required by state law for all commercial properties
DUSTs must be replaced every 5 years by parish ordinance
Explanation
Underground storage tanks (USTs) may develop leaks over time, releasing petroleum products into the surrounding soil and groundwater. This environmental contamination can make the property unsellable and require expensive remediation.
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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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
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.
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