Humber/Ontario Real Estate Course 2 Exam Practice

How do Phase 2 and Phase 3 environmental site assessments differ?

1. The Phase 2 site assessment includes visual inspections and Phase 3 emphasizes remedial costs.

2. Both phases analyze owner documentation and check for contamination.

3. Phase 2 assesses environmental problems and Phase 3 defines remedial actions and costs.

4. Phase 2 focuses on historical data while Phase 3 involves soil sampling.

5. Phase 2 is only for commercial properties, and Phase 3 is for residential properties.

6. Phase 2 and Phase 3 are required only for large development projects.

The correct answer is: Phase 2 assesses environmental problems and Phase 3 defines remedial actions and costs.

Phase 2 and Phase 3 environmental site assessments differ in their focus and purpose. Phase 2 assesses and identifies potential environmental problems on a property through activities such as sampling, testing, and analysis. On the other hand, Phase 3 follows Phase 2 by defining the necessary remedial actions to address the identified environmental issues, along with estimating the associated costs. Option A is incorrect because it inaccurately states the differences. While Phase 2 does include visual inspections, Phase 3 does not emphasize remedial costs; instead, it focuses on defining the necessary actions. Option B is incorrect because although both phases may involve analyzing owner documentation and checking for contamination, the primary difference lies in the depth and scope of their assessments. Option D is incorrect because while Phase 2 may involve historical data, it also includes activities like soil sampling, making the statement too narrow in scope to encompass all of Phase 2. Option E is incorrect because both Phase 2 and Phase 3 assessments can be relevant for different types of properties based on their specific environmental concerns, rather than being limited to commercial or residential properties. Option F is incorrect because Phase 2 and Phase 3 assessments are not exclusive to large development projects; they may be required for properties of various sizes based on environmental risk factors.