Environmental
What is 'environmental lien' in Illinois and how does it affect property transactions?
AA lien placed on property by environmental advocacy groups
BA government lien on contaminated property for unpaid cleanup costs or civil penalties; encumbers title and must be resolved before clear title can be transferred✓ Correct
CA standard form of environmental insurance placed as a lien on property
DA contractual lien created when a buyer purchases property with known contamination
Explanation
Environmental liens arise when government agencies (Illinois EPA, U.S. EPA) expend funds cleaning up contaminated property or impose penalties. These liens encumber the property's title, giving the government a claim to be repaid from sale proceeds. Environmental liens discovered in title searches must be resolved before a lender will fund or a buyer will close. In Illinois, superfund and CERCLA liens are particularly important to identify in commercial property due diligence.
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