When selling commercial property in Massachusetts, you cannot afford to ignore environmental cleanup obligations. The state’s strict environmental laws require property owners to address any contamination issues before finalizing a sale.
Failing to comply with these obligations can delay your important transactions. In severe cases, you may even face legal and financial consequences.
What does the law say about cleanup obligations?
Massachusetts General Law Chapter 21E, also known as the Massachusetts Oil and Hazardous Material Release Prevention and Response Act, outlines the responsibilities for environmental cleanup. Property owners must assess their land for any potential contamination, such as hazardous waste or oil spills. Contaminated properties may need to undergo extensive remediation to meet the state’s environmental standards.
Before selling a commercial property, you should conduct a thorough environmental site assessment. This process helps determine if the property has hazardous material contamination. A Phase I assessment involves a detailed review of the property’s history. If there is suspected contamination, a Phase II assessment may include soil and water testing. The results will help you understand the extent of cleanup required.
How do you fulfill your cleanup obligations?
In Massachusetts, the responsibility for cleanup typically falls on the current property owner. This is the case even if the contamination occurred under previous ownership. You must disclose any known contamination to the buyer and ensure that any required cleanup complies with state regulations. If a site assessment reveals contamination, you may need to work with licensed environmental professionals to clean up the property.
Cleanup efforts can include the removal of contaminated soil, groundwater treatment and other similar practices. The process can be expensive and time-consuming, but it is necessary for both the sale and the environment. Buyers may be hesitant to purchase a property without assurances that it meets environmental safety standards.
Proper site assessments and remediation are necessary steps to ensure a smooth transaction. As a seller, you risk future liabilities by neglecting to fulfill your cleanup obligations before a real estate transaction.
