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Mandated DisclosuresEnvironmentalMEDIUM

A Connecticut listing agent, David, is working with a seller who owns an old gas station that was decommissioned five years ago. Underground storage tanks were previously used on the property. A buyer has made an offer and asks David whether any special environmental laws apply to this transaction. Which of the following statements best describes David's obligation under Connecticut law?

Correct Answer

A) David must advise the buyer that the Connecticut Transfer Act likely applies because the property qualifies as an establishment under CGS §§ 22a-134, and appropriate environmental forms must be filed with DEEP

A former gas station with underground storage tanks is a classic example of an 'establishment' under the Connecticut Transfer Act (CGS §§ 22a-134 through 22a-134e), because such properties have stored petroleum products and hazardous substances. David, as a licensee, has an obligation to recognize when the Transfer Act is triggered and advise clients accordingly. The appropriate environmental investigation form (Form I, II, or III) must be filed with the Connecticut Department of Energy and Environmental Protection (DEEP) as part of the transfer process.

Answer Options
A
David must advise the buyer that the Connecticut Transfer Act likely applies because the property qualifies as an establishment under CGS §§ 22a-134, and appropriate environmental forms must be filed with DEEP
B
David must complete the Residential Property Condition Disclosure Report on behalf of the seller because the property has known environmental issues
C
David has no disclosure obligation because the property is commercial and Connecticut disclosure laws only apply to residential transactions
D
David must advise the buyer to waive all environmental contingencies in writing before the offer can be accepted

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Related Topics & Key Terms

Key Terms:

transfer_actenvironmental_disclosureunderground_storage_tankslicensee_obligations
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