fundamental liability issues arising under environmental protection laws Flashcards
Liability under comprehensive environmental response, compensation, and liability act (CERCLA) is considered ___, ___ & ___, and ___
strict
joint and several
retroactive
___ means that the owner is responsible to the injured party without excuse
Strict liability
___ means that each of the individual owners is personally responsible for the total damages
joint and several liability
If one of the owners is financially able to handle the total damages, that owner must pay the total and collect the proportionate shares from other owners whenever possible. This describes ___ liability
joint and several liability
___ means that the liability is not limited to the current owner but includes people who have owned the site in the past
Retroactive
According to the innocent landowner immunity clause, if pollution was caused by a ___, the landowner may be exempted from liability
3rd party
According to the innocent landowner immunity clause, if the property was acquired ___, the current landowner may be exempted from liability
after the fact
According to the innocent landowner immunity clause, if the landowner had no ___ or ___ of the damage, they may be exempted from liability
actual or constructive knowledge
According to the innocent landowner immunity clause, if due care was exercised when the property was purchased meaning that the landowner made a(n) ___ to determine that no damage to the property existed, the landowner may be exempted from liability
environmental site assessment
According to the innocent landowner immunity clause, if ___ were taken in the exercise of ownership rights, the landowner may be exempted from liability
reasonable precautions
The most serious problems with value involve the presence of ___ and ___
undisclosed landfills and hazardous waste sites
Licensees can encourage buyers to consult the ___ page on the EPA’s website to determine whether a property of interest is located near a(n) ___.
Superfund
superfund site
real estate licensees and all others involved in a real estate transaction must be aware of their ___ under state and federal environmental laws
potential liability
___ often carry the most legal liability exposure
sellers
___ may be held responsible, even though they did not know about the presence of environmental hazards
innocent landowners
___ may be held liable even if they didn’t cause the contamination
purchasers
lenders may end up owning worthless assets if owners default on loans rather than undertaking ___
expensive cleanup efforts
It is necessary for real estate licensees to be aware of the ___ from neighboring properties such as gas stations, manufacturing plants, or even funeral homes
potential environmental risks
It is necessary for real estate licensees to be aware of the potential environmental risks from neighboring properties such as gas stations, manufacturing plants, or even funeral homes, otherwise they could be held liable for ___.
Improper disclosure
even though real estate licensees are not expected to have technical expertise necessary to discover the presence of environmental hazards, they are presumed by the public to have special knowledge about real estate. therefore they must be aware both of ___ and ___
possible hazards
where to seek professional help
developers and purchasers of commercial and industrial properties often rely on a(n) ___ that includes the property’s history of use, a current-use review, and an investigation into the existence of reported or known contamination sources in the subject area that may affect the property.
environmental assessment
Although ___ may occur at any stage in a transaction, they are most frequently a contingency that must be satisfied before closing
environmental audits (assessments)
Although environmental audits (assessments) may occur at any stage in a transaction, they are most frequently a contingency that must be satisfied before ___
closing
a(n) ___ is often performed on a property to show that due care was exercised in determining whether any environmental impairments exist
environmental site assessment
The ___ can help prevent parties from becoming involved in contaminated property and work as a defense to liability
environmental site assessment
A(n) ___ is often requested by a lending institution, developer, or potential buyer.
environmental site assessment
a phase 1 environmental report of an environmental site assessment is requested first to determine…
whether any potential environmental problems exist at or near the property that may cause impairment
used to determine the absorption rate of soil around a septic tank
percolation test
there are no federal regulations that define what a(n) ___ must include
environmental assessment
there are no federal regulations that define what an environmental assessment must include, however one of the most accepted industry standards is provided by the ___
american society for testing materials international
a federally funded project requires that a(n) ___ must be performed
environmental impact statement
statements that detail the impact a project will have on the environment
environmental impact statement
in addition to being a requirement for federally funded projects, ___ are increasingly also being required for private development
environmental impact statement
