Texas Real Estate Sales Agent ExamTexas Real Estate LawMedium
A real estate sales agent is listing a property for sale. The seller informs the agent that there is a known underground storage tank (UST) on the property, which was used for heating oil many years ago and is now empty. What is the sales agent's primary responsibility regarding this information?
- AEnsure the seller discloses the presence of the UST, regardless of its current status, in the Seller's Disclosure Notice.
- BInstruct the seller to remove the tank before listing the property to avoid disclosure issues.
- CSuggest the seller obtain a professional environmental assessment, but only if a buyer specifically asks about underground tanks.
- DAdvise the seller that since the tank is empty, it does not need to be disclosed.
Show answer & explanationAnswer & explanation
Correct answer: A. Ensure the seller discloses the presence of the UST, regardless of its current status, in the Seller's Disclosure Notice.
Real estate licensees have a duty to disclose all known material facts about a property. The presence of an underground storage tank, even if empty, is a material fact that must be disclosed in the Seller's Disclosure Notice, as it could pose environmental or financial liabilities.
Why the other options are wrong
- B. While removal might be a good idea, it's not the agent's primary responsibility to instruct it, nor does it negate the past presence for disclosure.
- C. Disclosure should be proactive, not contingent on a buyer asking. The agent has a duty to ensure disclosure of known material facts.
- D. An empty UST can still be a material fact due to potential past contamination or future removal costs.
Disclosure of Underground Storage Tanks (USTs) (Texas)
Real estate licensees must ensure that sellers disclose the presence of known underground storage tanks (USTs) on a property, regardless of their current status (e.g., empty), as they represent a material fact.
- USTs are considered material facts due to potential hazards.
- Disclosure required even if empty or abandoned.
- Included in Seller's Disclosure Notice.
- Agent's duty to ensure seller complies.
Memory trick: UST 'U'nderground 'S'torage 'T'ank: 'U'pon 'S'eeing, 'T'ell 'T'he 'T'ruth.