Environmental

In New Mexico, the 'innocent landowner' defense under CERCLA allows a property owner to avoid Superfund liability if they can demonstrate:

AThey have owned the property for less than 5 years
BThey conducted all appropriate inquiry (Phase I ESA) before purchase and had no actual knowledge of contamination✓ Correct
CThey are a non-profit organization
DThe contamination occurred naturally

Explanation

The innocent landowner defense under CERCLA requires the buyer to conduct all appropriate inquiry (AAI) before purchase using a Phase I ESA. This due diligence must show no knowledge of contamination at the time of purchase.

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