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ARTICLE · 05 APRIL 2002

Liability for Subdivision of Contaminated Property

United StatesEnvironment
Rafe Petersen
Rafe Petersen

With the development of contaminated properties becoming increasingly more common, an interesting issue that recurringly arises is related to potential liability following subdivision. Assuming that a property is subdivided and a party purchases a "clean" subdivided parcel, could the purchaser of the "clean" parcel be held potentially liable if contamination is later found on the property retained by the seller or sold to a third party? The short answer is no, depending on several factors. Nonetheless, care ought to be taken to ensure that purchasers of "clean" parcels do not end up buying more than they bargain for.

The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund ), 42 U.S.C. §§ 9601-9675 (2001), establishes a severe liability regime for the release or threat of release of "hazardous" substances. The statutory scheme created by CERCLA imposes strict, joint and several liability on "owners" and "operators" of "facilities" at which

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