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Land Use Controls RegulationsEnvironmental_regulationsHARD

An investor knowingly bought a contaminated former factory in 2026 after completing compliant pre-acquisition inquiry. After closing, the investor removed protective caps, ignored leaking drums, and simply posted a general warning sign while marketing the site for resale. Which statement is most accurate under CERCLA?

Correct Answer

B) Even a buyer who knew of contamination can lose BFPP protection by failing to take reasonable steps and meet continuing obligations

A buyer may purchase known contamination and still seek BFPP protection, but that protection depends on continuing obligations after closing. Failing to take reasonable steps to stop continuing releases or prevent threatened future releases can jeopardize the protection.

Answer Options
A
Bona fide prospective purchaser status can never be lost once AAI is completed before closing
B
Even a buyer who knew of contamination can lose BFPP protection by failing to take reasonable steps and meet continuing obligations
C
Posting a general warning sign alone satisfies all continuing obligations at the property
D
Prior knowledge of contamination automatically bars BFPP status in every case

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Related Topics & Key Terms

Key Terms:

bfppcontinuing_obligationsreasonable_stepscerclabrownfield_redevelopment

Related Concepts

A nonconforming use is a property use that was legally established before a zoning change but no longer complies with the current zoning ordinance. It is commonly called a "grandfathered" use.

A planned unit development (PUD) is a zoning classification that allows mixed land uses (residential, commercial, recreational) within a single development with flexible zoning standards. Homeowners typically own their lot and share common areas.

Police power is the government's authority to enact laws and regulations to protect the public health, safety, morals, and general welfare. It is the broadest power government has over private property.

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