The property was sold for $1, it was a large white elephant with potential hazardous materials and possible ground contamination. 

Of course if it is a SFH why care unless you do not want the property contaminated with smoke.

Has anyone purchased a Meth Contaminated Property in California?

If you're looking at large multifamily properties or office buildings or contaminated land or development, you will need an attorney with certain specializations.

You may be into apartment buildings and one day you find what appears to be a great deal, a 300 unit apartment complex on the market for an asking price of $200k but then later you may find that where the apartment building are used to be an oil refinery and now the ground is contaminated.  

I am looking at a house that has been severely discounted due to contamination from meth.

I too thought about whether he's hiding something but I spoke to the current property manager and he says it's always been a MF property so the chance of underground tanks or soil contamination is quite low, isn't it? 

Say, there's an oil tank in ground that spilled and contaminated the soil. 

This would help determine the probability of contamination, and might lead to a more in depth and more conclusive Phase 2 study. 

what happens if the buyer destroys or contaminates the property or uses it as collateral or doesn't pay the insurance etcCan I ask for other collateral?