The selling or leasing of property is commonplace for many businesses. Keeping up on myriad laws and regulations that apply to any given property transaction can be mind boggling. When it comes to selling or leasing a property that is contaminated with hazardous substances, the laws vary from state to state. Knowing the state laws and how they may potentially affect a transaction can be a seller's best protection.
Many states now impose a duty on the seller to disclose the contamination to a potential buyer.
Common-law tort and contract remedies are available to buyers in all 50 states, and include negligent or intentional misrepresentation, fraud, and breach of contract or warranty. In addition, states such as New Jersey, Connecticut and California have enacted statutes requiring sellers to disclose environmental contamination. Second, the operation must fall within a specified Standard Industrial Classification, or SIC code. In addition to the obvious businesses such as manufacturing plants and hazardous waste disposal facilities, ISRA would also apply to gasoline stations or the neighborhood dry cleaner. ISRA provides strong enforcement penalties for failure to comply with its requirements.