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Directories Int'l Realty US Realty
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The Top 5 Environmental Lies In Real Estate Stuart Lieberman, Esq., I have been an environmental lawyer for 20 years and some things seem to re-occur. Such as, the list of lies used by people trying to sell environmentally defective property. When property that is for sale has an environmental problem -be it a mere blemish such as a leaking tank, or a more substantial problem: perhaps asbestos contamination, the right thing to do always is to disclose. This will eliminate possible fraud claims down the road and it is fair and appropriate. But some people never seem to accept that this is the ONLY way to address these issues. And so, the lies. Five big ones that keep on coming back, to be specific. Lie to BUYER Number 1: Don't worry, no one will every know about the contamination, so just ignore that it is here. On a ten acre parcel, .25 acres of contamination from former, on site underground tanks may not seem like a lot. And if the area is going to be paved over, a buyer might be lulled into believing that this can be swept under the rug forever. Maybe, but I believe that the right assumption is that this problem will be detected. At some point, the new buyer may wish to re-finance or sell to a new buyer. Either event will result in an environmental audit and the problem will likely surface. You need to assume that if you found out about the problem, some one else will be equally astute as well. Which means, the problem needs to be remediated now, not swept under the rug. Lie to BUYER Number 2: Trust me, I'm your father (friend, business partner, Rabbi, lawyer -whomever). Sometimes a potential buyer will tell me that since they are buying the property from a parent or other similar close relation, they do not feel they have to protect themselves. In other words, the "lie" is that they can forego an environmental audit because they are buying from a trusted person. Maybe that's true. But often it isn't. If a big problem arises, your "friend" may be no where to be found. And that means the problem you did not look for, will be yours alone to clean if it ever surfaces. The fact of the matter is that family is family, and business is business. Even an intra-family business transaction should be done formerly and properly. This includes a full environmental investigation. Lie to BUYER Number 3; Trust them, they are the government. Very often a buyer tells me that the seller has presented them with a document from a government regulatory authority indicating the property is clean. Therefore the question is: does the buyer need to spend the money necessary to perform an independent environmental review? The answer is, almost always, YES. Government cleanup approvals are usually based on submissions from consultants working for the party cleaning the site. Which means that there may be pressure on the consultant to, how can I say this nicely --- stretch the truth in terms of what is reported to the government agency. If you buy the property and it is dirty, the odds are good that you will have to pay for the cleanup even if the government signed off on the property as being clean. True, you may get away with it, but the chances of getting caught or not getting away with it are very high and the down side is extreme. Trust no one but your own, independent, qualified, environmental consultant. Lie to BUYER Number 4: Since maps don't show wetlands, or because a title report does not show wetlands, it follows that wetlands are not present on the property being purchased. Generally speaking, this is wrong. As a general rule, if you want to know whether your property has wetlands, you need to have the property field evaluated by a wetlands specialist. Maps and title reports, and any thing like maps and title reports, almost never tell an accurate story in this regard. You would be surprised how many people fall into this trap over and over again. Please, don't be one of them - hire a qualified wetlands specialist. Lie to BUYER Number 5: Since the property was a farm, you don't have to worry about contamination. WRONG. Many old farms have contaminants that need to be addressed before a property can be developed. This often includes pesticides, metals, animal waste and leaking tanks. While the kinds of contaminants that may exist may differ, farms can be as contaminated as old factories. In conclusion, let the buyer beware. Don't get caught by any of the top five environmental lies that people seem to keep on telling over and over again. You were born with a head on your shoulders - be sure to use it.
The information provided in this column is written by Stuart Lieberman,a practicing environmental attorney, and is for general information purposes only. It is not legal advice and should not be used in place of legal advice.
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