A Connecticut real estate licensee is advising a client who is purchasing a property that was formerly used as a dry-cleaning facility. The seller has disclosed that hazardous solvents were stored on the property. The buyer's lender is requiring Transfer Act compliance before approving the mortgage. Which Transfer Act form would MOST LIKELY be required in this transaction, and who is primarily responsible for filing it?
Correct Answer
A) Form III (Environmental Condition Assessment Form), filed by the transferor (seller) certifying the environmental condition of the property.
Under CGS §§ 22a-134 through 22a-134e, a property formerly used as a dry-cleaning facility that stored hazardous solvents would qualify as an 'establishment' under the Transfer Act. When an establishment is being transferred and the environmental condition is known or suspected, the transferor (seller) is primarily responsible for filing the appropriate Transfer Act form with DEEP. Form III (Environmental Condition Assessment Form — ECAF) is used when the transferor acknowledges that the property may have environmental conditions that require investigation or remediation. The seller cannot simply declare a negative condition when hazardous solvents are known to have been stored on-site.
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