Environmental
Under Massachusetts Chapter 21E, the innocent purchaser defense requires a buyer to show they conducted:
ANo due diligence since the seller disclosed all issues
BAll Appropriate Inquiries (AAI) — typically a Phase I ESA — before purchasing the property✓ Correct
COnly a visual inspection of the property
DA government-certified environmental audit
Explanation
To claim the innocent purchaser defense under Chapter 21E, a buyer must have conducted All Appropriate Inquiries (AAI) — typically a Phase I Environmental Site Assessment meeting ASTM E1527 standards — before purchasing the property. This standard due diligence can protect a buyer from liability for pre-existing contamination they did not know about.
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Key Terms to Know
Encumbrance
Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
VarianceOfficial 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.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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