Environmental Considerations Practice Quiz Flashcards
What visible clues could indicate potential hazards on a property?
Suspicious indicating the possibility of dumping
Solid waste in loose piles, stored in barrels or buried
Soil contamination evidenced by spills or oily residue on the ground
What are the reasons an environmental assessment might be required?
To meet the requirements of a lending institute
To satisfy the buyer or seller in a property transaction
To establish the parameters for a risk management plan to mitigate the environmental hazards
What are typical action taken in a Phase 1 environmental site assessment?
A historical and current records review
A site visit and inspection
Preparation of a written report
Which of the following are signs that a property may be used as a meth lab?
Extensive security
Metal drums and boxes with labels removed or sprayed over
Makeshift ventilation piping and venting
What is Errors and Omissions Insurance?
This type of insurance covers damages of real estate industry members specific to activities involving a trade in real estate
Which of the following is not a useful best practice for a real estate professional to mitigate business risk?
Assume your client understands the relationship and do not bother them unnecessarily with clarification on this point
Use the contract you feel most comfortable with for all transactions
Material latent defects are?
A defect that cannot be discerned through a reasonable inspection of the property
What is the deductible applicable under the REIX policy if a claim has already been paid in the three-year period?
If a claim has been in the three year period the deductible rises to $7,000
Which of the following steps must occur should legal action be taken against a licensee?
Do not admit responsibility, assume an obligatory or make any commitment of money services without express written consent from REIX even if you believe you made an error or were negligent in some manner.
Notify your Broker and REIX immediately and provide a complete account of the circumstances.
Correctly checked
If presented with any documents, such as service papers, complaint forms or an arbitration initiation form, send them to REIX at once.
Correctly checked
Assemble all pertinent documents, agreements, correspondence and memos.
Correctly checked
Respond to requests by REIX properly to ensure timely and efficient handling of your claim.
What is the best description of Phase 2 of an environmental site assessment?
If there is reason to suspect contamination on a site, physical testing is done of the site and the suspected contaminants
Which of the following are signs of a property may be used as a grow-op?
Odor similar to rotten cabbage.
Correctly checked
Condensation on inside of windows.
Correctly checked
Windows covered in black plastic, foil or dark, heavy curtains.
Correctly checked
People coming and going at odd hours.
Incorrectly unchecked
Excessive steam from vents.
Stigma may affect a property that:
Is known to be contaminated.
Correctly unchecked
Was contaminated but has been remediated.
Correctly unchecked
Is not contaminated but is located near a potential hazard.
Correctly unchecked
Was in the media for some reason.
What types of insurances should real estate professionals investigate before conducting any real estate business?
Errors and Omissions (provided by REIX)
General liability insurance
Identify the following activities which are excluded from coverage under the REIX insurance policy
Title registration of conveyancing
Activities not considered to be trading real estate
Dishonest, fraudulent or criminal activities
True or False: Clients must maintain insurance on the property they are selling until at least the completing date indicated on the purchase contract?
False
