Environmental

The 1980 Superfund law (CERCLA) established the 'innocent landowner defense,' which may protect a purchaser from liability if the purchaser:

ADid not personally cause any contamination on the property
BConducted appropriate inquiry (such as a Phase I ESA) prior to purchase and did not know of contamination✓ Correct
CPaid fair market value for the property
DIs an individual homeowner rather than a corporation

Explanation

The CERCLA innocent landowner defense protects purchasers who conducted 'all appropriate inquiries' (AAI) before purchasing and had no knowledge of contamination at the time of purchase. Conducting a Phase I ESA that meets AAI standards is typically required to claim this defense. Ignorance alone without due diligence is not sufficient.

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