Humber/Ontario Real Estate Course 2 Exam Practice

When drafting an agreement of purchase and sale for a property with an underground fuel storage tank, what should be included?

1. No mention is needed because a preprinted clause covers it.

2. The seller must represent that the tank complies with regulatory requirements.

3. The seller must agree to remove the tank before closing, as mandated by regulations.

4. The buyer could require a TSSA-approved contractor to verify the tank's compliance.

5. The seller must disclose the tank to the local municipality.

6. The buyer could request the tank be sealed and left in place.

The correct answer is: The buyer could require a TSSA-approved contractor to verify the tank's compliance.

When dealing with a property that has an underground fuel storage tank, it is essential to include provisions that protect both the buyer and the seller. Option D is the correct choice because having a TSSA-approved contractor verify the tank's compliance ensures that the tank meets the necessary safety and regulatory standards. This helps in preventing any potential environmental hazards or future liabilities related to the tank. Options B, C, and E are incorrect because they do not address the verification of the tank's compliance by a qualified professional, which is crucial in ensuring the tank meets all necessary requirements. Option A is incorrect because relying solely on a preprinted clause may not provide sufficient protection or clarity regarding the underground tank's condition and compliance. Option F is also incorrect since sealing and leaving the tank in place without proper verification of compliance may not fully mitigate any associated risks or liabilities. Therefore, option D is the most comprehensive and prudent choice when drafting an agreement of purchase and sale for a property with an underground fuel storage tank.