Environmental
An 'innocent purchaser' defense under CERCLA requires the buyer to prove they:
AHad no money at the time of purchase
BConducted 'all appropriate inquiry' (such as a Phase I ESA) and had no knowledge of contamination at the time of purchase✓ Correct
CPurchased the property at a foreclosure sale
DAre a first-time buyer
Explanation
The innocent landowner defense under CERCLA requires the buyer to show they conducted all appropriate inquiry (Phase I ESA meeting ASTM standards) before purchase and had no knowledge or reason to know of the contamination.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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