EnvironmentalIntermediateCalifornia Exam

Which of the following best describes an 'innocent landowner' defense under CERCLA?

AA buyer who acquired contaminated property without knowledge of contamination and conducted all appropriate inquiryCorrect

BA seller who disclosed contamination and was released from liability, under California environmental disclosure law

CA government agency that inherited contaminated land through escheat, as required under standard hazard disclosure practice

DA tenant who caused contamination and vacated before cleanup, consistent with California environmental regulations

Why A buyer who acquired contaminated property without knowledge of contamination and conducted all appropriate inquiry Is Correct

Answer A: A buyer who acquired contaminated property without knowledge of contamination and conducted all appropriate inquiry

CERCLA provides an 'innocent landowner' defense for buyers who, at the time of acquisition, did not know and had no reason to know of contamination, having conducted all appropriate inquiry (such as a Phase I ESA). This defense can protect a new owner from liability for pre-existing 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

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

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Key Terms to Know

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Zoning

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

Eminent Domain

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

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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