David is purchasing a single-family home in Worcester, Massachusetts. During due diligence, his attorney discovers that the property is listed in MassDEP's searchable database as an Activity and Use Limitation (AUL) site under Chapter 21E, meaning cleanup was completed but certain restrictions on property use remain in place. The seller's agent never mentioned this. Which of the following best describes the legal significance of the AUL for this transaction?
Correct Answer
D) An AUL is recorded at the Registry of Deeds and runs with the land, binding future owners to the use restrictions it imposes.
Under MGL Chapter 21E and the Massachusetts Contingency Plan (310 CMR 40.1080), an Activity and Use Limitation (AUL) is a legal instrument recorded at the Registry of Deeds. It runs with the land, meaning it is binding on all current and future owners and users of the property. The AUL specifies conditions under which the property may be used (e.g., no residential use, no groundwater extraction) based on the level of cleanup achieved. Because it is a recorded encumbrance affecting title and use, it is a material fact that must be disclosed in any real estate transaction.
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