Environmental

Which of the following actions BEST protects a North Dakota buyer from CERCLA (Superfund) liability when purchasing commercial property?

APurchasing title insurance
BConducting a Phase I Environmental Site Assessment and qualifying as a bona fide prospective purchaser✓ Correct
CHaving the seller sign an indemnification agreement
DPurchasing property that has never had a commercial tenant

Explanation

CERCLA's Bona Fide Prospective Purchaser defense protects buyers who perform appropriate all appropriate inquiries (AAI), typically a Phase I ESA, before purchasing. The buyer must not cause or exacerbate contamination.

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