Possible Contaminated Land

[Cole Bigbee]

There is 8 acres in a great location along the river that was the former site of a fertilizer manufacturing plant. The plant was demolished 2 years ago and the property was put up for sale. I viewed this property over a year ago but passed due to other opportunities that came up at the time. I drove by it last week and noticed it was still for sale, but at a lesser cost. When I ask the broker what kind of DD time I could get, he said none. The company is from out of the country and will not give any due diligence terms or any environmental information. Definitely suspicious but almost worth taking a chance on at the current price. 

I've done my fair share of Phase I and Phase II on many properties and turned down some because of bad Phase IIs only to find out that remediation was not as bad as I thought.   

My questions are as follows:

1.) What kind of liability would I be looking at if I purchased, only to find out that it was badly contaminated?

2.) Don't large companies, such as the one that owns this site have insurance that covers environmental issues?

3.) I find it hard to believe that once the site was decommissioned, and that an Enivronmental agency did not come in and inspect. Don't you think?

4.) What are your thoughts with just getting a company to do a Phase II for me even if I don't have it under contract?

5.) What else am I missing? Any agencies that I could call that could give me information?   

[Cason Acor]

Don’t waste your time. It’s sat for a year because the seller is unreasonable and will continue to sit until they wise up or someone is foolish enough to buy it. 

They know what’s wrong with it. Someone with your thought of “it’s almost too good to pass up at this price” is exactly the buyer they’re looking for. Someone who will buy it quick, without looking too deep, and then all the issues are the new owner’s problem. I’m certain that as a condition of closing they’d make you absolve them of any liability for environmental issues.