Florida Broker Practice Exam

What defense may a purchaser claim under CERCLA if they were unaware of contamination?

1. Active owner defense

2. Innocent landowner defense

3. Limited liability defense

4. Buyer beware defense

The correct answer is: Innocent landowner defense

The correct answer is the Innocent Landowner Defense. This defense is specifically designed to protect purchasers of property who were not aware of the contamination at the time of purchase and who can demonstrate that they exercised due diligence in investigating the property before buying it. Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), a purchaser can claim this defense if they can prove they did not know, and had no reason to know, of any hazardous substances on the property at the time of acquisition. To successfully assert this defense, the purchaser should show that they conducted an appropriate level of environmental assessment, such as a Phase I Environmental Site Assessment, which is a standard practice for assessing the potential for contamination. This defense encourages responsible purchasing practices, thereby fostering accountability among property owners. Understanding this defense is essential for real estate professionals and prospective buyers to effectively mitigate the risks associated with acquiring potentially contaminated properties.