David is purchasing a commercial property in Waterbury, Connecticut that was previously used as a dry-cleaning facility. His agent recommends including a contingency in the purchase contract related to the property's history with hazardous chemicals. Which Connecticut-specific contingency is most appropriate for this situation?
Correct Answer
B) A Connecticut Transfer Act compliance contingency allowing the buyer to review environmental investigation results
The Connecticut Transfer Act (CGS §§ 22a-134 through 22a-134e) applies to the transfer of establishments that have stored, generated, treated, or disposed of hazardous waste. A dry-cleaning facility is a classic Transfer Act property because of its use of perchloroethylene (PERC) and other solvents. The appropriate contingency is a Transfer Act compliance contingency, allowing the buyer to review the required environmental investigation (Form III, II, or I) and remediation status before being obligated to close.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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