Environmental
An environmental indemnification clause in a Texas commercial real estate contract allocates:
AThe cost of required environmental disclosures to the buyer
BResponsibility for known or discovered environmental contamination between buyer and seller✓ Correct
CTCEQ compliance costs to the Texas state government
DResponsibility for remediation costs to the lender
Explanation
Environmental indemnification clauses in commercial contracts allocate responsibility between buyer and seller for environmental contamination — specifying who bears the cost of cleanup, regulatory penalties, and third-party claims related to environmental conditions.
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