If you are considering buying real estate that you know or suspect is contaminated with hazardous substances, you may be interested in a potential purchase agreement. The protection of liability of the agreement clarifies and limits your liability to the State of Oregon for existing contamination. PPAs often make it easier to obtain financing for the purchase of real estate. Because it “works with the country,” an AEA can also protect subsequent owners and pauches, as long as they meet the AAE conditions. These are typical essential public benefits for the PPAs that DEQ has negotiated. DeQ, however, evaluates each agreement separately and there are a wide range of potential significant public benefits. DEQ encourages potential buyers to be creative. Other government instruments available to potential buyers to manage potential responsibilities are potential purchase agreements and not other action decisions. NOTE: This information is not intentional and should not be construed as legal advice. Potential buyers should consult a lawyer before purchasing potentially contaminated property.
Unlike an AAE with DEQ, the Federal Defense De Bona Fide Prospective Purchaser does not require a written agreement with the EPA. This lack of agreement and uncertainty about several provisions of the new BFPP act have raised concerns among some buyers about their possible liability at the federal level. The EPA`s BFPP Directive recognizes that, in limited cases, it is in the public interest when the EPO enters into potential buyer contracts or any other form of agreement with buyers of contaminated real estate. In many cases, the seller who cleans the property before the sale is completed can allay fears of liability. Sellers often work through DEQ`s voluntary cleaning program to study and clean up impurities before closing a transaction. When the cleanup is complete, DEQ issues an NFA letter. This measure does not absins a current owner or subsequent purchaser of liability, but indicates that the property was cleaned to the satisfaction of DEQ on the basis of the information then available to DEQ. NFNs may contain conditions such as long-term monitoring requirements or land use restrictions. In both cases, an NFA is a practical approach to pest control for many buyers. CERCLA offers an “innocent buyer” defense similar to Oregon law, for buyers who “did not know and had no reason to know” of the real estate contamination at the time of purchase. This defence requires the purchaser to conduct all appropriate investigations in accordance with U.S. Environmental Protection Agency rules (Code of Federal Regulations, Title 40, Part 312).
A detailed real estate assessment is required to meet the AAI standard. Parties to a real estate transaction may also assign responsibility for contamination between the buyer and seller through compensation, ownership contracts or similar agreements. These can help buyers resolve uncertainties and are a common feature in many transactions, but they do not relieve buyers of an underlying liability. They are required to correctly register AAEs and corresponding documents with the relevant Landratsamt and must meet all AAE requirements.