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
The word friable would most likely apply to:
Radon Gas
Lead-based paint
Superfund area
Asbestos
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
In Arizona, what agency is in charge of environmental protection?
EPA
ADEQ
ADWR
WQARF
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
The person filing for bankruptcy protection is called:
A Creditor
A Trustee
A Debtor
Secured
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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