Environmental
A property contaminated by a leaking underground storage tank (LUST) would be considered:
AA property with functional obsolescence
BA property with environmental contamination requiring disclosure and remediation✓ Correct
CA property with external obsolescence only if adjacent properties are also contaminated
DA property exempt from disclosure if the tank has been removed
Explanation
A leaking underground storage tank creates environmental contamination that must be disclosed in real estate transactions. The contamination may require expensive remediation, and liability can pass to new owners if not properly addressed.
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