All Forum Posts by: Lawrence P. Schnapf

I believe mobile homes are regulated as consumer goods and not real property. HUD has established construction standards and i am fairly sure that California has established warranties that apply to the sale of these units. Many states also special regulations regarding leasing of mobile homes. so it would behoove you to consult with a local attorney so you know your rights.

you should consult a Cal real estate lawyer. I believe Cal has stringent laws on sellers of manufactured homes that could override contractual provisions.  The other question is why are you locating a home on an old dump? you could be buying environmental headaches...  

a gas station should only be purchased by a sophisticated purchaser- not a novice purchaser. The environmental issues associated with gas stations are legion. and they are not necessarily limited to the current gas tanks. Many gas stations have replaced tanks over the years without the kind of thorough investigation that is now required. Moreover, contamination from gas stations can migrate considerable distances and an owner could be responsible for remediating the plume even if was not the party responsible for the original spill. These sites require sophisticated contracts, extensive investigation and insurnace. If you are buying from a major oil company, their contracts are extremely complex.

Cleanup can and should be coordinated with the development plan. Most US state brownfield programs allow for different cleanup standards and there can be ways of siting buildings to minimize cleanups (excavating contaminated soil). But you should (1) engage a Canadian lawyer well-versed in the brownfield program for the province the site is located in and (2) and environmental consultant. Not sure what financial incentives provinces have for brownfield sites. a Canadian lawyer can help you with this as well.

Banks have different risk profile than a property owner for environmental liability. The bank can walk away from a big problem, the owner cannot. There are plenty of cases where banks found a phase 1 report acceptable and the borrower misconstrued that as meaning the site was clean or did not pose a significant risk. Bank approval simply means that the loan meets its underwriting guidelines. The bank may have other risk mitigation tools such as insurance or guaranty that it can rely on instead of foreclosing on a contaminated property. So beware and dont be mislead. 

Hi Ryan- most states have now adopted cleanup standards based on end use (e.g., residential, commercial, industrial) for the traditional contaminants (VOCs, metals, SVOCs, petroleum, etc.) and these are generally static except for VOCs when vapor intrusion may be present. 

The discovery of vapor intrusion has caused adoption of more stringent standards for when mitigation might be required(in the past if groundwater was not used, states would ignore contamination). 

The other new activity is around "emerging contaminants" which are previously unregulated or still unregulated. The two key emerging contaminants are PFAS and 1,4 Dioxane. The cleanup standards being developed for PFAS are in parts per trillion!!!  

quality of well water is extremely important. need to sample not only for potable criteria but the full range of regulated substances. naturally-occuring metals such as arsenic can be very expensive to treat. 

Depending on your state, there could be liability protection for cleanup which usually requires doing a phase 1 and exercising "appropriate care." However, this liability defense does not apply to third party claims for property damage or bodily injury. Hence the suggestion for procuring an environmental insurance policy.

Hi John Mocker- Each property is different. this is why a good environmental consultant should be engaged. Some types of contamination does not migrate. Other times, if groundwater is not used, states will approve leaving behind contaminated groundwater. Vapor intrusion can indeed be a risk to onsite and off-site occupants but that exposure pathway would be evaluated by the environmental consultant and the state regulator. There are environmental policies that can cover third party claims for property damage and bodily injury. The premiums vary depending on a variety of circumstances . I have found them to be attractive to lenders.  

you dont have to do a "complete" cleanup under most state cleanup programs. Cleanup standards are based on exposure (amount of contamination and how long exposed). Most states allow  "risk-based" cleanups which take the land use into account when determining the cleanup levels. Since people do not occupy a commercial property 24/7, residual contamination may be allowed to remain provided there is no exposure pathway (e.g., soil is covered, groundwater is not used).  You should consult with an environmental professional to discuss the conditions. This is not necessarily a walk away. I work on lots of deals with contaminated properties. there are plenty of tools to mitigate the risk...provided you understand the risks so you can implement appropriate mitigation steps.