Question

Environmental audits

A)may occur at any stage in a transaction.
B)must occur at a specific time during escrow.
C)may only occur just prior to escrow closing.
D)typically are not an escrow contingency to be satisfied prior to closing.

Answer 1

Environmental audits are assessments conducted to evaluate compliance with environmental regulations and standards. They can occur at any stage of a transaction and may be an escrow contingency.

Step-by-step explanation:

Environmental audits are assessments conducted to evaluate the compliance of an organization or transaction with environmental regulations and standards. They are typically performed by independent auditors to determine the potential environmental risks and liabilities associated with a transaction or business operation.

A) Environmental audits may occur at any stage in a transaction, depending on the specific circumstances and requirements. For example, an audit may be conducted before the transaction is finalized to identify any environmental issues that may affect the value or feasibility of the transaction.

B) Environmental audits do not necessarily have to occur during escrow. They can be conducted at any time during the due diligence phase or as a condition precedent to closing.

D) Environmental audits can be an escrow contingency to be satisfied prior to closing, especially if there are concerns about the environmental impact or compliance of the property or business being transacted.