EnvironmentalIntermediateArizona Exam

The 'innocent landowner defense' under CERCLA protects a buyer who:

APurchased property from a prior owner who had a signed environmental indemnification agreement with the EPA in place before the transaction closed

BConducted appropriate due diligence (ASTM Phase I ESA) before purchase and had no knowledge of contaminationCorrect

CInherited the contaminated property and can demonstrate that the contamination predates the decedent's acquisition of the property by at least 10 years

DPurchased the property at a government tax lien auction, since such sales automatically extinguish CERCLA liability under the federal tax lien statute

Why Conducted appropriate due diligence (ASTM Phase I ESA) before purchase and had no knowledge of contamination Is Correct

Answer B: Conducted appropriate due diligence (ASTM Phase I ESA) before purchase and had no knowledge of contamination

CERCLA's innocent landowner defense protects buyers who conducted 'all appropriate inquiries' (Phase I ESA to ASTM standards) before purchase, had no reason to know of contamination, and took no action to cause contamination.

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.

Key Environmental Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

People Also Study

Key Terms to Know

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.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.

Adverse Possession

A doctrine by which a person can gain legal title to another's land by openly, continuously, and adversely occupying it for a statutory period.