Where a lender is asked to loan funds in such a transaction, significant opportunities can be lost if there is an automatic rejection because the site has contamination problems. Most contamination problems are manageable over time. What is critical to all parties is that the transaction clearly sets forth each party's rights, obligations and responsibilities. The lender must be sure that the party left with cleanup responsibilities has the resources to carry out those efforts. All parties should understand these sites do not necessarily require a significant outlay of cash all at once.
Most sites require years to assess and remediate.
The costs of addressing these sites can be spread over a significant period. A prudent lender will take steps to ensure that its collateral is protected, but will not decline an otherwise acceptable transaction simply out of a blind fear that the site has contamination.