Environmental

A Pennsylvania property is found to have a PADEP-regulated brownfield. Which of the following accurately describes the buyer's potential liability?

ABuyers are completely protected from environmental liability by Pennsylvania's Act 2 in all circumstances
BWithout proper due diligence (Phase I/II ESA) and applicable liability protections, a buyer could inherit cleanup liability under CERCLA and state law✓ Correct
COnly the original polluter bears liability under Pennsylvania and federal law
DPennsylvania buyers are shielded from all brownfield liability once a property is listed on the MLS

Explanation

Without proper environmental due diligence and applicable liability protections, a Pennsylvania buyer who purchases a contaminated property could inherit cleanup liability under CERCLA (joint and several) and Pennsylvania's Act 2. Buyers can protect themselves through Phase I and Phase II ESAs, purchasing under Act 2 liability releases, negotiating environmental indemnification in the contract, and securing environmental insurance.

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