California Real Estate Practice Exam

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Under the California Environmental Quality Act of 1970, what requires an environmental impact report?

  1. All properties for sale

  2. All subdivisions with substantial environmental impact

  3. Any new construction

  4. Projects under a certain budget

The correct answer is: All subdivisions with substantial environmental impact

Under the California Environmental Quality Act of 1970, an environmental impact report is required for all subdivisions with substantial environmental impact. This means that any construction that has a significant impact on the environment, such as an increase in pollution or a disturbance of habitat, must have an environmental impact report. This is to ensure that the potential environmental effects of the project are fully considered and addressed before the project is approved. The other options, including all properties for sale, any new construction, and projects under a certain budget, are incorrect because they do not reflect the specific criteria for when an environmental impact report is required under this law.

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