A seller has disclosed to their real estate associate that their property in Grande Prairie has underground storage tanks that were decommissioned 15 years ago, but no environmental survey exists to confirm the remediation. The buyer's financing condition includes a requirement for due diligence on environmental matters. What should the associate advise the seller to provide to the buyer?

Question: A seller has disclosed to their real estate associate that their property in Grande Prairie has underground storage tanks that were decommissioned 15 years ago, but no environmental survey exists to confirm the remediation. The buyer's financing condition includes a requirement for due diligence on environmental matters. What should the associate advise the seller to provide to the buyer?

Answer options:

• Simply state that the tanks were decommissioned without further documentation.
• Request the buyer waive their environmental due diligence condition, as it's an old issue. ✅ Provide all available documentation regarding the decommissioning and recommend the buyer conduct their own environmental assessment if they have concerns.
• Offer a small price reduction in lieu of providing any documentation or assessment.

Correct answer: Provide all available documentation regarding the decommissioning and recommend the buyer conduct their own environmental assessment if they have concerns.

Explanation: Under common law and ethical duties, sellers and their associates have an obligation to disclose known material latent defects. Full disclosure of existing information and recommending the buyer conduct their own due diligence, rather than withholding or downplaying information, is the correct approach for potential environmental issues as per RECA Rules.