Sandra is a Connecticut licensee representing the seller of a former gas station property in New Haven. The seller insists the property is 'clean' because the underground storage tanks were removed 10 years ago. Sandra's client wants to file a Form III (negative declaration) to expedite the sale. Which of the following is the most accurate statement about this situation?
Correct Answer
B) A Form III is appropriate only if a licensed environmental professional (LEP) confirms the property does not meet the definition of an establishment after investigation
Under the Connecticut Transfer Act, a Form III (negative declaration) is not simply a seller's personal assertion — it must be supported by the findings of a Licensed Environmental Professional (LEP) who has investigated the site and determined that it does not qualify as an establishment. A former gas station with underground storage tanks is a classic Transfer Act establishment. The mere removal of tanks does not automatically eliminate Transfer Act obligations; an LEP must evaluate whether hazardous substances were released and whether the site meets the statutory definition of an establishment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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