To qualify as a Bona Fide Prospective Purchaser (BFPP) under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, commonly known as Superfund), a landowner or tenant must meet certain criteria. To receive the liability protection, a BFPP must perform “all appropriate inquiries” prior to acquiring/leasing the property (which is defined as conducting a Phase 1 Environmental Site Assessment in accordance with ASTM standard), and demonstrate “no affiliation” with a liable party.
A BFPP must also satisfy the following obligations:
- compliance with land use restrictions and not impeding the effectiveness or integrity of institutional controls;
- taking “reasonable steps” with respect to hazardous substances affecting a landowner’s property;
- providing cooperation, assistance and access;
- complying with information requests and administrative subpoenas; and
- providing legally required notices.
Click here to review a Regulatory Briefing on Landowner Liability Protections and All Appropriate Inquiry.