Environmental
CERCLA (the Superfund law) is significant to real estate because:
AIt sets mortgage disclosure requirements for contaminated properties
BIt makes current and past property owners potentially liable for cleanup of hazardous waste✓ Correct
CIt requires all commercial buyers to purchase environmental insurance
DIt establishes a federal zoning overlay for industrial sites
Explanation
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) imposes strict, joint, and several liability on potentially responsible parties — including current and former owners, operators, and generators — for cleanup of hazardous substance releases. This liability can transfer to new owners who purchase contaminated property.
Related California Environmental Questions
- What is the significance of a property being located in a FEMA 'Special Flood Hazard Area' (100-year floodplain)?
- Mold in a residential property is primarily a health concern because exposure can cause:
- A property is located within an Alquist-Priolo Earthquake Fault Zone. What does this mean for new construction?
- Under California law, a seller must disclose if a property is located in which of the following natural hazard zones? (Select the BEST answer.)
- A buyer purchasing commercial property to avoid CERCLA liability should conduct due diligence to qualify as an 'innocent landowner.' Which step is most critical?
- California Proposition 65 (Safe Drinking Water and Toxic Enforcement Act) requires businesses to:
- A homebuyer's inspector finds what appears to be asbestos floor tiles in a 1960s home. The most appropriate advice to the buyer is to:
- Underground storage tanks (USTs) are a concern in real estate because:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →