Broker Law Review L-3

Environmental concerns that deal with small particles in the air would be:

Radon gas

Asbestos

Superfund

Lead-based paint

A broker is selling a property that was the site of an old gas station to a buyer. Which of the following would apply?

The broker would not tell the buyer about the previous gas station

The broker would only have to disclose the gas station if it were still in operation

The broker should disclose due to the possibility of an expensive clean up

Regarding a commercial sites, buyers are responsible for finding out on their own

If a parcel of real estate is near a toxic waste site, the agent would be obligated to:

Conduct a Phase I audit

Disclose the fact

Do nothing if he or she is not the agent for the toxic waste site owner

Disclose to the buyer only if the toxic waste site is a Superfund site

A residential tenant moves into a building that was built in 1960. The tenant must be given which of the following:

Disclosure statement

Lead-based paint disclosure and booklet

HUD booklet

Good-faith estimate

A licensee is required to disclose the presence of lead-based paint if the property was built before:

1988

1978

1989

1992

Under what circumstances would a gift be considered voidable?

When given out of love and affection only

When giving a creditor preferrential treatment prior to filing bankruptcy

When given between relatives

When done with the absence of monetary consideration

Water Quality Assurance Revolving Fund sites are another way of describing environmentally contaminated sites that are regulated by:

Arizona Department of Environmental Quality

Comprehensive Environmental Response Clean-up Liability Act

Assured water supply regulations

Federal Superfund

If lead-based paint was used in a remodeled residence that was initially built in 1940:

The possibility of lead-based paint must be disclosed if the buyers have children under the age of six

The lead-based paint must be disclosed before the contract is binding

The lead-based paint must be disclosed unless it was later painted over

The lead-based paint must be removed before occupancy

Asbestos, if found in a commercial building:

May be encapsulated and managed in place

Must be removed if friable

May not be removed if friable

Must removed prior to close of escrow

Contaminated soil around a gas station that had leaking underground tanks:

Must have a berm built around it

Must have clean topsoil placed at the surface

Must be removed from the site

Must be disposed of in a special hazardous waste landfill

Which type of business would be the least likely to have a contamination problem?

Dry cleaner

Retail jewelry store

Dairy farm

Sign painter

Who may be found responsible by the EPA for clean-up of a contaminated property?

Seller

Buyer

Previous Owners

Those on chain of title

In Arizona, what prompts the disclosure of radon gas?

Relocation company requirements

Mountainous or rocky terrain

Buildings with basements

Knowledge by seller or agent

A Chapter 13 bankruptcy:

Does not require a trustee to be appointed

Requires liquidation of assets

Provides relief for wage earners

Lifts the automatic stay

In bankruptcy, a secured creditor

Gets priority treatment

Has collateral

May not ask the court to lift a stay

Will be paid after unsecured creditors

A buyer's credit rating will reflect the effects of filing Chapter 7 bankruptcy:

Until they re-establish credit

For 7 years

For 2 years

For 10 years

A title search will provide a buyer with valuable information before purchasing the property. Which of the following would be the most valuable information regarding the title search?

Previous ownership of the property

Previous use of the property

Permits issued for the property

Citizen complaints

If an agent becomes aware of potential, but not yet proven, environmental problem on a property he is presenting for sale, he should immediately:

Notify E.P.A., or Arizona D.E.Q.

Disclose the situation to the buyer

Discuss the matter with the seller

Resign from the listing, or refuse to show the property

When a real estate broker represents the seller in a transaction, can a broker be held liable for failure to disclose to the buyer the environmental problems associated with a particular piece of property?

No, since there exists no agency relationship between broker and buyer

No, since the broker represents the seller only

Yes, since the broker owes fiduciary to both buyer and seller

Yes, since failure to disclose would be a violation of the Commissioner's Rules and Regulations

When filing a bankruptcy, which of the following would be true about its effect on an environmental monetary judgement?

The judgement is discharged

A permanent stay is granted

Bankruptcy has no effect on the judgement

Only the equity in the property can be used to bay the judgement

CERCLA liability generally attaches four broad categories of parties responsible for cleanup of releases from a particular site. All of the following parties would be responsible EXCEPT:

Current owners and operators of the site

Past owners or operators at the time

Persons who arranged for disposal of hazardous substances

Real Estate brokerage who arranged the transaction

When a seller wishes to limit his environmental liability, he would do which of the following?

Conduct a Phone One study before the sale

Insert ann "as is" clause in the sales contract

Receive a "hold harmless" clause from the buyer

Record a Notice of Non-Responsibility

In establishing responsible party liability under environmental laws, the government may pursue parties retroactively to which date?

The date of the last conveyance of title

The date of the last general warranty deed

There is no limit on retroactivity

The date of the release

When leasing a property, the lessor should be concerned with the lessee's activities and the possibility of contamination. In order to limit the lessor's liability, he would ask the lessee for all of the following EXCEPT:

Personal or corporate guarantee

Title insurance

Letter of credit

Limiting assignment or subleasing

Which of the following is a characteristic of "joint and several" liability under CERCLA and SARA?

Unending into the future

Each party is 100% liable for all possible damages and costs

Retroactive into the past

Cannot be discharged by filling bankruptcy until after 10 years

Which of the following would not be considered an environmental hazard?

Proximity to a dump area

Air pollution

Prior use of the property by a dry cleaner

Leaking underground water storage tanks

When listing a property for sale or lease, a licensee would be wise to make an on-site inspection to identify possible contamination. All of the following could be considered danger signs EXCEPT:

Discolored soil

Dying vegetation

Evidence of dry wells in the are

Top soil erosion

All of the following apply to adjudicated water rights EXCEPT:

Land located within the boundaries of the Gila River

Water users would be required to file a claim

It applies to all underground streams in Arizona

When the property is sold the seller files a "Well" change of ownership

When monetary claim has been filed against a party alleging violation of the environmental laws, which of the following would protect the party in violation?

Filing a quit claim deed

Filing a declaration of homestead

Filing a deed in lieu of foreclosure

Filing proof on an innocent purchaser defense

The EPA program that covers Brownfields would refer to:

Zoning concerns

Wildlife protection

Land with hazardous substances

Land next to lakes and streams

Federal Emergency Management Agency (FEMA) is responsible for:

Septic tank regulations

Underground utilities

Well permits

Flood area maps

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