Environmental
What is an environmental indemnity clause in a commercial purchase agreement?
AA clause waiving all environmental liability
BA provision where the seller agrees to indemnify the buyer for pre-existing environmental conditions✓ Correct
CA requirement for environmental insurance
DA government-required disclosure
Explanation
An environmental indemnity clause in a commercial purchase agreement holds the seller responsible for costs and liabilities arising from pre-existing environmental conditions, protecting the buyer from unknown contamination expenses.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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