EnvironmentalIntermediateArizona Exam

The 'innocent landowner' defense under CERCLA does NOT protect a buyer who:

AConducted a Phase I ESA before purchase

BPurchased with knowledge of contamination or who did not perform appropriate inquiryCorrect

CInherited contaminated property involuntarily

DAcquired through foreclosure with prior Phase I review

Why Purchased with knowledge of contamination or who did not perform appropriate inquiry Is Correct

Answer B: Purchased with knowledge of contamination or who did not perform appropriate inquiry

The innocent landowner defense requires that the buyer (1) had no knowledge of contamination at the time of purchase and (2) conducted all appropriate inquiries (Phase I ESA). Purchasing with knowledge or without adequate inquiry defeats the defense.

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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Key Terms to Know

Option Contract

A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.

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