Texas Real Estate Sales Agent ExamTexas Real Estate LawMedium
A licensed real estate sales agent is assisting a seller client who informs the agent that the property has an underground storage tank (UST) that was used for heating oil in the 1960s but was decommissioned and filled with sand in 1990. The agent should advise the seller that:
- AThe agent should conduct an environmental assessment to confirm the tank's status before advising the seller.
- BOnly active USTs used for commercial purposes require disclosure.
- CThe seller is required to disclose the presence of the UST, even if decommissioned, on the Seller's Disclosure Notice.
- DSince the UST was decommissioned before current regulations, no disclosure is required.
Show answer & explanationAnswer & explanation
Correct answer: C. The seller is required to disclose the presence of the UST, even if decommissioned, on the Seller's Disclosure Notice.
In Texas, sellers are generally required to disclose any known material facts about the property, including the past or present existence of underground storage tanks, even if decommissioned. This information is crucial for potential buyers due to environmental and liability concerns.
Why the other options are wrong
- A. While an environmental assessment might be prudent for the seller, the agent's immediate duty is to advise on disclosure of known facts.
- B. While active commercial USTs have strict regulations, residential USTs, even decommissioned ones, are still material facts for disclosure.
- D. Deactivation does not eliminate the need for disclosure due to potential residual environmental risks.
Disclosure of Underground Storage Tanks (USTs) (Texas)
In Texas, sellers must disclose the known presence of underground storage tanks (USTs) on their property, regardless of whether they are active or decommissioned, as they represent a potential environmental and liability concern.
- Applies to both residential and commercial properties.
- Must disclose known presence, even if decommissioned.
- Information should be included on the Seller's Disclosure Notice.
Memory trick: Old tanks, even filled with sand, still need a disclosure hand.