Texas Real Estate Sales Agent ExamProperty DisclosuresMedium

Which of the following is an example of an environmental hazard that typically requires disclosure on a Seller's Disclosure Notice in Texas if known to the seller?

  1. AProximity to a busy highway, causing noise pollution.
  2. BPrevious remediation of a leaking underground storage tank (UST) on the property.
  3. CA neighbor's overgrown tree that partially blocks the view from a window.
  4. DThe presence of a small, inactive animal burrow in the backyard.
Show answer & explanation

Correct answer: B. Previous remediation of a leaking underground storage tank (UST) on the property.

Environmental hazards that pose a risk to health or property value are material facts requiring disclosure. A leaking underground storage tank, even if remediated, indicates a past contamination issue that is highly significant. Noise, minor animal activity, or aesthetic issues are generally not considered environmental hazards requiring disclosure on the same level.

Why the other options are wrong

  • A. Noise pollution is generally not considered an environmental 'hazard' in the context of the disclosure form, though it might be a general nuisance.
  • C. A neighbor's tree is an aesthetic issue or a potential property line dispute, not an environmental hazard on the seller's property.
  • D. A small, inactive animal burrow is typically a minor issue and not a significant environmental hazard requiring specific disclosure.

Environmental Hazard Disclosure

Sellers must disclose known environmental hazards on or affecting the property that could impact health, safety, or property value, such as contamination, asbestos, or lead-based paint.

  • Focus on hazards impacting health, safety, or property value.
  • Includes past contamination issues (e.g., USTs, spills).
  • Disclosure required if known to the seller.
  • Agent also has duty to disclose known hazards.

Memory trick: Hidden dangers, health risks, property hits.

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