Under CERCLA, who is liable for damages from hazardous waste dumping before a property sale?

Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the seller of a property can be held liable for damages resulting from the dumping of hazardous waste prior to the sale. This liability can arise even if the seller was not directly responsible for the hazardous waste disposal. CERCLA is designed to facilitate the cleanup of hazardous waste sites and assigns liability to parties deemed to be responsible, which typically includes current and former owners and operators of the property at the time of the contamination.

The law aims to promote accountability and ensure that those who contribute to environmental harm bear the costs of cleanup. This means that when a property is sold, the seller may carry ongoing legal and financial obligations related to past environmental conditions, whereas the buyer, upon purchasing the property, may inherit these risks unless they conducted due diligence prior to the sale.

Understanding this framework under CERCLA is important for both sellers and buyers in real estate transactions, as it emphasizes the need for thorough environmental assessments to uncover potential liabilities associated with hazardous waste.