Humber/Ontario Real Estate Course 4 Exam Practice

When unsure about environmental issues for a commercial lot, a salesperson should advise:

1. That no concerns are necessary

2. A thorough Phase 1, 2, and 3 assessment

3. An appropriate condition be included in the offer

4. Request an environmental impact study by the city

5. Ignore such issues until after an offer is made

6. The seller to rectify the issue immediately

The correct answer is: An appropriate condition be included in the offer

Advising that an appropriate condition be included in the offer is a prudent approach when dealing with potential environmental issues on a commercial lot. Including such a condition allows the buyer to have room for due diligence, safeguarding their interests by making the final sale contingent upon satisfactory results from environmental assessments or investigations. This condition can protect the buyer from unforeseen liabilities or lengthy remediation processes should an environmental issue be uncovered. By suggesting an appropriate condition, the salesperson ensures that potential environmental concerns are addressed but remains focused on negotiating a fair deal that benefits both parties involved. This allows the buyer to conduct necessary inspections or assessments after the offer but before finalizing the purchase, providing a layer of security regarding the property's environmental state. The other choices lack this protective measure. For instance, suggesting no concerns are necessary disregards the complexities of environmental due diligence. A thorough assessment, while crucial, may not be immediately feasible for a buyer to initiate without a firm offer in place. Recommending an environmental impact study is excessive if a simple condition can suffice, and ignoring issues until after an offer exposes the buyer to greater risks. Finally, insisting the seller rectify issues immediately could undermine negotiations and threaten the buyer-seller relationship. Including a condition ensures that the buyer is protected and informed, making