Humber/Ontario Real Estate Course 3 Exam Practice

Which term accurately describes a visual inspection and review of relevant documents in property assessment?

1. Phase 1 site assessment

2. Phase 2 site assessment

3. Phase 3 site assessment

4. Financial assessment

5. Soil testing

6. Market analysis

The correct answer is: Phase 1 site assessment

The term that accurately describes a visual inspection and review of relevant documents in property assessment is a Phase 1 site assessment. This initial assessment is primarily concerned with identifying potential environmental contamination and assessing any historical use of the property that could indicate risks. During a Phase 1 site assessment, professionals will conduct a thorough examination of the property to evaluate its existing conditions and any documents that may have an impact on its value or safety. This process typically includes interviews with past and present property owners or occupants, reviewing local records, and conducting a physical inspection of the site. Other options, while related to property evaluation, serve different purposes. A Phase 2 site assessment typically follows the Phase 1 assessment and involves more invasive testing, such as soil sampling or groundwater testing, if potential contaminants have been identified. Phase 3 site assessments often focus on remediation strategies for identified environmental issues, not on initial evaluations. A financial assessment deals with property value, marketability, and potential profitability, rather than document review or visual inspection. Soil testing is specifically aimed at evaluating the physical and chemical properties of soil, not a broad property evaluation. Lastly, market analysis involves an analysis of market trends and property values rather than the specific evaluation of the property's condition.