Environmental
Under New York State law, a property owner who discovers that a previous owner contaminated their property may be held responsible for cleanup costs under:
AOnly if the current owner caused the contamination
BNew York Navigation Law (for petroleum) and potentially CERCLA (for hazardous substances) as a potentially responsible party (PRP), even as an innocent current owner✓ Correct
CNo law; only the party who caused the contamination is responsible
DOnly if the property was purchased after the contamination was publicly known
Explanation
Under CERCLA and New York Navigation Law, liability for cleanup of contaminated property can attach to current owners regardless of whether they caused the contamination. However, 'innocent landowner' defenses and New York's BCP provide some protections for owners who did not know about contamination and who conduct appropriate due diligence.
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Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
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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