Environmental Law/ Bankruptcy

Question 0

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

Answer 0

Broker should disclose due to the possibility of an expensive clean up.

Question 1

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

Answer 1

Asbestos

Question 2

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

Answer 2

Disclose the fact

Question 3

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

Answer 3

Lead base paint disclosure and booklet.

Question 4

The word friable would most likely apply to

Answer 4

Asbestos

Question 5

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

Answer 5

1978

Question 6

Under what circumstances would a gift be considered voidable?

Answer 6

When giving a creditor preferential treatment prior to filing bankruptcy

Question 7

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

Answer 7

ADEQ

Arizona department of environmental quality

Question 8

In AZ, what agency is in charge of environmental protection?

Answer 8

ADEQ

Question 9

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

Answer 9

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

Question 10

Asbestos, if found in a commercial building:

Answer 10

May be encapsulated and managed in place.

Question 11

Contaminated soil around a gas station that had leaking underground tanks

Answer 11

Must be disposed in a special hazardous waste landfill.

Question 12

Which types of business are more likely to have a contamination problem?

Answer 12

Dry cleaner, gas station, dairy farm, sign painter

Question 13

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

Answer 13

Those on chain of title

Question 14

In AZ, what prompts the disclosure of radon gas?

Answer 14

Knowledge by seller or agent

Question 15

The person filing for bankruptcy protection is called

Answer 15

A debtor

Question 16

Chapter 13 bankruptcy

Answer 16

Provides relief for wage earners

Question 17

In bankruptcy, a secured creditor

Answer 17

Has collateral

Question 18

A buyer’s credit rating will reflect the effects of filing chapter 7 bankruptcy For how many years?

Answer 18

For 10 years

Question 19

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

Answer 19

Previous ownership of the property

Question 20

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

Answer 20

Discuss the matter with the seller

Question 21

When the real estate broker presents 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?

Answer 21

Yes, since the failure to disclose would be a violation of the commissioners rules and regulations

Question 22

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

Answer 22

Only the equity in the property can be used to pay the judgment.

Question 23

CERCLA Liability generally attaches four broad categories of parties responsible for cleanup of releases from a particular site. The following parties would be responsible

Answer 23

• Current owners and operators of the site.
• Past owners and operators at the time.
• Persons who arranged for disposal of hazardous substance

Question 24

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

Answer 24

Conduct a phase 1 study before the sale.

Question 25

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

Answer 25

The date of the release.

Question 26

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 could ask the lessee for all of the following

Answer 26

• personal or corporate guarantee
• letter of credit
• limiting assignment or subleasing

Question 27

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

Answer 27

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

Question 28

The following would be considered an environmental hazard?

Answer 28

• Proximity to a dump.
• Air pollution
• Prior use of the property by a dry cleaner

Question 29

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 sign

Answer 29

• Discolored soil
• Dying vegetation
• Evidence of dry wells in the area

Question 30

All of the following apply to adjudicated water

Answer 30

• Land located within the boundaries of the Gila river
• Water users would be required to file a claim
• When the property is sold the seller files a “well” change of ownership

Question 31

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

Answer 31

Filing proof of an innocent purchaser defense

Question 32

The EPA program that covers Brownfields would refer to

Answer 32

Land with hazardous substances

Question 33

Federal emergency management agency FEMA is responsible for

Answer 33

Flood area maps