Don't Rely on the Innocent Purchaser Defense against Environmental Liability Claims

Property owners face substantial financial risk from environmental contamination, regardless of who created the problem.

Four Limitations

1. The defense applies only to federal Superfund law, not other environmental laws
2. Once contamination is known, subsequent buyers cannot use the defense
3. If initial assessments reveal minor contamination that proves more extensive later, no protection
4. If the assessment company misses something, you lose innocent purchaser status

Recommendations

Conduct thorough Phase One assessments and require sellers to address identified problems before closing.

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