Arizona Real Estate License Practice Exam

Raw land typically requires greater due diligence due to potential environmental hazards because it has not been developed or improved; thus, there may be unknown risks related to prior land use. Issues such as soil contamination, hazardous waste, or other environmental concerns are more prevalent in undeveloped areas, where historical land activities might not be well-documented. Investigating these factors is crucial to ensure that the land is safe for intended uses and to avoid unforeseen liabilities.

In contrast, residential properties, commercial properties, and condos often have existing structures that may already comply with environmental regulations, and their history may be better documented. While environmental assessments are still important in these cases, the level of risk and the need for extensive due diligence is generally lower compared to raw land. Therefore, developers, investors, and potential buyers must engage in thorough assessments of raw land to avoid future complications arising from environmental hazards.