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Mandated DisclosuresEnvironmental_disclosures_chapter_21eHARD

Kevin purchases a commercial property in Springfield, Massachusetts without conducting an environmental site assessment. After closing, he discovers that the previous owner had released petroleum from underground storage tanks, and MassDEP has classified the site as a Chapter 21E release location. Kevin had no actual knowledge of the contamination at the time of purchase. Under Chapter 21E's liability framework, which of the following statements most accurately describes Kevin's legal exposure?

Correct Answer

B) Kevin is liable as the current owner under Chapter 21E's strict liability provisions, regardless of whether he caused the contamination.

MGL Chapter 21E imposes strict liability on the current owner of a property where a release has occurred, regardless of fault or knowledge. Unlike the federal CERCLA innocent landowner defense (which requires due diligence such as a Phase I ESA), Massachusetts Chapter 21E's strict liability framework does not provide a comparable innocent purchaser defense simply based on lack of knowledge. Kevin, as the current owner, is liable for cleanup costs even though he did not cause the contamination. This is one of the most significant and Massachusetts-specific aspects of Chapter 21E that distinguishes it from some buyers' expectations.

Answer Options
A
Kevin has no liability because he was an innocent purchaser who had no knowledge of the contamination at closing.
B
Kevin is liable as the current owner under Chapter 21E's strict liability provisions, regardless of whether he caused the contamination.
C
Kevin's liability is limited to the cost of a Phase I Environmental Site Assessment, since he failed to conduct one before purchase.
D
Kevin is liable only if MassDEP can prove he knew about the contamination before purchasing the property.

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Related Topics & Key Terms

Key Terms:

chapter_21estrict_liabilitycurrent_ownerinnocent_purchaserenvironmental_due_diligencecommercial_property
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