Environmental
Underground Storage Tanks (USTs) are a concern in commercial real estate transactions because:
AThey increase property taxes
BThey can leak petroleum or chemicals contaminating soil and groundwater✓ Correct
CThey are always required to be removed before sale
DThey are covered by standard homeowner's insurance
Explanation
Leaking USTs can release petroleum products and other chemicals into the soil and groundwater, creating significant environmental liability and cleanup costs.
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- Underground storage tanks (USTs) containing petroleum products are regulated in NC primarily to prevent:Environmental
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- CERCLA (the Superfund law) imposes cleanup liability on:Environmental
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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.
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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