SITE ASSESSMENTS

Real estate -- site assessments

Tough environmental laws define your financial liability, and all too often property owners are judged guilty until proven innocent.

When a health or environmental hazard is discovered, the property owner is most often held responsible, whether or not the owner had anything to do with creating the hazard. The "innocent landowner" defense now requires documentation of due diligence.

Who pays? Could be you

The property owner is rarely alone in facing environmental liability. Under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the U.S. Environmental Protection Agency has the power to seek or impose remedial action on virtually anyone involved in the site. Buyers, lenders, managers -- all can be liable and each must know the risks of every site.

Deep pockets can mean deep trouble

No relationship exists between the value of property and its potential liability! A $100,000 property can literally cost you millions.

Red flag facts about Superfund:

Superfund is strict. If you are the owner or operator of contaminated site, you may be a Potentially Responsible Party (PRP) -- responsible for cleanup -- whether or not you were at fault.

Liability is joint and several. Any or all PRPs bear a site's total costs. One solvent party may bear full costs if the EPA can't recover from other PRPs.

Liabilities are retroactive. CERCLA imposes liability for past environmental acts, including acts that were legal when they occurred!

Liability is perpetual. There is no statute of limitations on potential liability.

Liability is unlimited. It includes costs of investigation, testing, removal, public protection, health studies, environmental restoration and damages to third parties.

Liability can be personal. Individuals and employees can be liable if they were responsible for, or arranged disposal of hazardous substances contrary to law or industry standards at the time.


SITE ASSESSMENTS Real estate -- site assessments Tough environmental laws define your financial liability, and all too often property owners are judged guilty until proven innocent. When a health or environmental hazard is discovered, the property owner is most often held responsible, whether or not the owner had anything to do with creating the hazard. The "innocent landowner" defense now requires documentation of due diligence. Who pays? Could be you The property owner is rarely alone in facing environmental liability. Under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the U.S. Environmental Protection Agency has the power to seek or impose remedial action on virtually anyone involved in the site. Buyers, lenders, managers -- all can be liable and each must know the risks of every site. Deep pockets can mean deep trouble No relationship exists between the value of property and its potential liability! A $100,000 property can literally cost you millions. Red flag facts about Superfund: Superfund is strict. If you are the owner or operator of contaminated site, you may be a Potentially Responsible Party (PRP) -- responsible for cleanup -- whether or not you were at fault. Liability is joint and several. Any or all PRPs bear a site's total costs. One solvent party may bear full costs if the EPA can't recover from other PRPs. Liabilities are retroactive. CERCLA imposes liability for past environmental acts, including acts that were legal when they occurred! Liability is perpetual. There is no statute of limitations on potential liability. Liability is unlimited. It includes costs of investigation, testing, removal, public protection, health studies, environmental restoration and damages to third parties. Liability can be personal. Individuals and employees can be liable if they were responsible for, or arranged disposal of hazardous substances contrary to law or industry standards at the time.