Humber/Ontario Real Estate Course 1 Exam Practice

What should a salesperson do if the buyer wishes to proceed with an offer but notices an abandoned tank on the property?

1. The abandoned tank must remain with the property.

2. The buyer should require evidence that removal was in compliance with environmental standards if requested for removal.

3. The seller should be responsible for cleanup costs if a leak occurs after closing.

4. The tank should be left as is since it's a fixture on the property.

The correct answer is: The buyer should require evidence that removal was in compliance with environmental standards if requested for removal.

If a buyer wishes to proceed with an offer but notices an abandoned tank on the property, the correct course of action is for the buyer to require evidence that the removal of the tank was in compliance with environmental standards if removal is requested. This is critical because abandoned tanks can pose environmental risks, including the potential for contamination of the soil and surrounding area. Option A is not correct because the presence of an abandoned tank should not automatically mean it must remain with the property, especially if its removal is necessary to mitigate environmental risks. Option C is not the best course of action because it is not typically the responsibility of the seller to cover cleanup costs that arise after the property has been transferred to the buyer unless otherwise agreed upon in the contract. Option D is incorrect as well because the mere presence of the tank does not automatically make it a fixture that must be left as is. Environmental regulations and standards take precedence in such situations, advocating for responsible removal and disposal procedures.