Environmental
In NJ, an 'innocent purchaser' defense under CERCLA and the NJ Spill Act may protect a buyer who can demonstrate:
AThey had no money to perform environmental testing
BThey performed all appropriate inquiries (AAI) prior to purchase, including a Phase I ESA, and had no knowledge of contamination✓ Correct
CThey purchased the property at foreclosure
DThey obtained title insurance
Explanation
The innocent landowner defense under CERCLA requires the buyer to have performed all appropriate inquiries (AAI) in conformance with ASTM standards before purchase and to have had no knowledge of contamination. A Phase I ESA meeting ASTM E1527 standards is the typical method.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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.
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