Humber/Ontario Real Estate Course 4 Exam Practice

If underground storage tanks are found on a property, which issue is most likely to result?

1. Decreased property value.

2. Higher utility bills.

3. Environmental contamination.

4. Improved resale value.

5. Additional building permits required.

6. Pest infestations.

The correct answer is: Environmental contamination.

The presence of underground storage tanks on a property raises significant concerns primarily related to environmental contamination. These tanks can often leak harmful substances, such as fuel or chemicals, into the soil and groundwater, which can pose health risks to the surrounding community and the environment. When tanks are not properly maintained or inspected, the risks of leaks increase, thereby leading to possible contamination issues that must be addressed. Environmental regulations may require remediation efforts if contamination is detected, which can be costly and extensive. Furthermore, the potential for contamination can deter potential buyers, significantly impacting the property's desirability and marketability. In contrast, decreased property value might occur as a consequence of contamination, but it is the contamination itself that is the primary concern initially. Higher utility bills and pest infestations may not be directly connected to the presence of underground tanks, while improved resale value and the need for additional building permits are unlikely results in the context of having such tanks on the property.