Humber/Ontario Real Estate Course 3 Exam Practice

For which type of property is a phase one environmental site assessment recommended?

1. Residential homes.

2. Commercial lots in urban areas.

3. Newly constructed shopping malls.

4. Agricultural land.

5. Vacant land next to a manufacturing plant.

6. School building sites.

The correct answer is: Commercial lots in urban areas.

A phase one environmental site assessment is advisable primarily for commercial lots in urban areas due to the higher likelihood of contamination and previous industrial or commercial activities. In urban environments, land has often undergone various uses over the years, which may introduce potential environmental hazards, such as soil or groundwater contamination. The assessment involves researching the history of the property, examining regulatory records, and assessing potential risks to ensure safety and compliance with environmental regulations. While phase one assessments can also be applicable to other types of properties, the emphasis on commercial urban lots stems from the increased complexity and potential liabilities associated with these properties, especially in densely populated areas where land use activities could have varied significantly. Assessments for other options, such as residential homes or agricultural land, may not be as routinely prioritized or required unless there is known history or activity that raises concern.