Humber/Ontario Real Estate Course 4 Exam Practice

What condition could a buyer include when purchasing a property with an underground fuel storage tank?

1. Ignore tank as it is addressed in preprinted clause.

2. Ensure tank removal by the seller before closing under TSSA rules.

3. Request warranty from seller on tank compliance.

4. Hire a TSSA-approved contractor to check tank compliance.

5. Seller guarantees on hazards tied to the tank.

6. Exclude tank clauses from the agreement entirely.

The correct answer is: Hire a TSSA-approved contractor to check tank compliance.

A buyer considering a property with an underground fuel storage tank has several important factors to account for due to the potential environmental risks and legal implications involved with such tanks. Hiring a TSSA-approved contractor to check tank compliance is a prudent step, as it ensures that an expert can assess the condition of the tank, including potential leaks, compliance with regulations, and safety hazards. This approach provides due diligence, aids in understanding any necessary remediation actions, and helps the buyer make an informed decision regarding the property. The other options entail varying degrees of risk or avoidance of responsibility. Ignoring the tank entirely would overlook significant concerns. Relying solely on the seller's assurance regarding compliance or guarantees related to hazards may not sufficiently protect the buyer. Similarly, requesting compliance warranties from the seller or excluding tank clauses could leave the buyer vulnerable to future liabilities or compliance issues, making it crucial to conduct an independent assessment. Employing a contractor licensed by the TSSA fosters confidence that the assessment will meet industry standards and provide a clear picture of the status of the tank.