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Lucy Made an Offer to Purchase the Lucky Star Tavern

Question 13

Multiple Choice

Lucy made an offer to purchase the Lucky Star Tavern that was accepted by the property owner. During the title search process her solicitor discovered that the property had been used 20 years previously as a gas station and shop. There were no gas pumps visible on the property when Lucy inspected it prior to making her offer to purchase. No record could be found of any removal of the underground tanks.


A) Lucy could avoid the contract to purchase the property.
B) Lucy may not order an environmental audit be performed on the property at this stage.
C) Lucy needed to make her offer to purchase conditional on a clean environmental audit in order to now avoid the contract.
D) If Lucy completes the transaction, she can make the current landowner-vendor jointly responsible for the cost of cleaning up the property since the problem was discovered before closing.
E) All of the responses are true.

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