Question

Assume that you own a small apartment building close to a major commercial street and a service station. You learn that there has been a major leak of underground storage tanks from the service station, and the gasoline has spread onto and below the surface of your property. Discuss sources of value loss to your property from the contamination.

Answer 1

Explanation:

A good source of value loss is the amount of money that the property owner would have to spend to get rid of this contamination. One way to go would be to get a good environmental consultant to take a risk assessment on your property and environment. The expense burden should be lighter on you since it is expected that the service station owners take responsibility. This contamination would cause the value of this property to fall.