Environmental

An environmental indemnification clause in a South Dakota commercial real estate purchase agreement is designed to:

AExempt the seller from all property disclosure requirements
BAllocate responsibility for environmental cleanup costs between buyer and seller✓ Correct
CProvide the buyer with insurance against environmental losses
DWaive the buyer's right to conduct a Phase I ESA

Explanation

Environmental indemnification clauses allocate financial responsibility for environmental remediation between buyer and seller, specifying who bears costs for pre-existing versus future contamination.

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