Question

What is the consequence if the closing is done without signing the Groundwater Hazard Statement?

1) The closing will be delayed
2) The buyer will be responsible for any groundwater issues
3) The seller will be responsible for any groundwater issues
4) The transaction will be cancelled

Answer 1

If the closing is done without signing the Groundwater Hazard Statement, the consequence is typically a delay in the closing process. Option A is the answer.

Step-by-step explanation:

The Groundwater Hazard Statement is a crucial document in real estate transactions, especially in areas where groundwater-related issues are a concern. It outlines potential risks and responsibilities related to groundwater on the property. Without a signed statement, the parties involved may face legal and regulatory challenges, leading to a delay in finalizing the transaction.

While options 2 and 3 address responsibility for groundwater issues, they don't accurately capture the immediate consequence of not signing the Groundwater Hazard Statement, which is a delay in the closing process. Canceling the transaction (option 4) is a possible outcome in extreme cases, but a delay is a more immediate consequence.

Option A is the answer.