EnvironmentalIntermediateAlaska Exam

In Alaska, an oil spill on a property creates environmental liability that:

ATransfers entirely to new owners upon property sale, as is typical in most transactions
BMay attach to the property and be inherited by future owners through CERCLA liabilityCorrect
CExpires after 3 years if unreported
DIs limited to the cost of the initial cleanup only

Why May attach to the property and be inherited by future owners through CERCLA liability Is Correct

Answer B: May attach to the property and be inherited by future owners through CERCLA liability

Environmental liability under CERCLA can attach to the property itself and transfer to future owners. A purchaser who conducts an appropriate all appropriate inquiry (AAI) before purchase may qualify for the innocent landowner defense, but unaware buyers can still inherit significant cleanup liability.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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