Phase 2 Environmental Questions
If I summon a phase 2 environmental test on a property that I am interested in purchasing and they discover contamination, will the current owner be obligated by the government to remediate the contamination? 

The purchase is contingent on phase 2 testing at this point and the current owner is worried about discovering contamination which the government will require to remediate based on my findings. 

Thanks in advance 

Edit: Pennsylvania 
[{"id": "egijz5e", "text": "Ask a professional bro, the rules will depend on where you are. You talking Tokyo or Kansas buddy?", "replies": [{"id": "egik15c", "text": "Sorry, should have mentioned Pennsylvania. ", "replies": [{"id": "egik3sz", "text": "Well I'm in Canada so our laws I'm sure are different. Still, the enviro. consultants you plan on getting the Phase 2 will be a good place to start when asking about liability. Otherwise, lawyers, but they cost money. ", "replies": [{"id": "egikje9", "text": "My lawyer told me that the current owner would be on the hook for any remediation. \n\nBut we are ate a gridlock. Owner doesn\u2019t want to do phase 2 in case contamination is discovered, and he would be obligated to remedy. \n\n\nAnd I cannot purchase property unless phase 2 is completed. \n\n\nI understand where the owner is coming from, if the property is $1M and remediation costs $250,000, that\u2019s a huge blow for him. And even after that, i May still elect not to purchase the property. ", "replies": [{"id": "egiknll", "text": "Don't do it without the phase 2. No matter what owner or whoever says. Offer to pay for the testing if the deal's important enough. The liability can go beyond just what's on the property. If your laws are like ours, you could be liable for any pollution that migrated to your neighbours properties. \n\nAlso, buying it and then suing the previous owner after is always harder. It's much easier to negotiate before the money changes hands, because you have no clue where it could go.", "replies": [{"id": "egikqg6", "text": "Agreed, no phase 2 no deal. \n\nI am already planning on paying for phase 2 testing.\n\n", "replies": [{"id": "egikrmv", "text": "Good luck", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}, {"id": "egjyfm4", "text": "you essentially just outlined the grid lock when a phase 1 comes back poorly most of the time unexpectedly.  \n\nThis is why most of these deals die.  \n\nThe owner has a problem and they are asking you not to investigate it anymore because they don't want to have to deal with it or learn more information about it.  When you buy, his problem becomes yours.  You obviously want to know as much about this and price it in/have resolutions/etc before you are responsible for it.  \n\nWhat the state epa/fed epa may do is commonly a question that requires speculation unless you fully investigate the issue and involve them, which as you noticed the sellers don't typically want to do as if this goes badly the deal is usually done and they are left with no sale and a mess.\n\nIt just depends how much you want this property.  You can offer higher non refundable earnest money if you really really want it and just want this resolved and are willing to lose and walk away if its horribly bad.  Otherwise they have to understand they have a problem and they probably can't sell without correcting it.  Or they may choose to do nothing and sit on this forever (which some owners do).  ", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "egiri5p", "text": "There is no obligation to clean it up, it\u2019s whatever you negotiate.  If you report him to DEP... then different story,  if it\u2019s contaminated soil this could be cleaned up in months.  If it\u2019s water DEP will likely require you demonstrate the water is cleaned up for 2 years.\n\nA mortgage will be very difficult if it\u2019s contaminated.  Traditionally contaminated properties are all cash deals.\n\nI\u2019ve seen an old gas station with 1\u201d of gasoline on top of the water in the monitoring wells, DEP was aware but nothing was required.", "replies": [{"id": "egj3k02", "text": "Thank you for the input!!!", "replies": [{"id": "egjis0i", "text": "I was replying on mobile last night, so not the longest answer.  I can add some more detail.  No one knows if the property is contaminated - that's why a Phase 2 is required.  I've done 10ish Phase 2's in PA including one where a public company stepped in and cleaned up the property to the tune of 8 figures.  \n\nPA DEP enforcement is very lax.  Their files are full of known pollution problems.  I was stunned on the gas station one with visible gas sitting on top of the wells.  It was physically next to a feeder stream that fed a trout stream.  Meaning that gasoline was 100% ending up in the trout stream.  DEP is VERY protective of trout streams.  That problem was 20 years old and DEP was doing nothing.  The most traditional problem in PA is oil/gasoline and DEP is lax about that.  The only time I've seen DEP be proactive was on an unauthorized bridge a homeowner built to access their home.  \n\nBiggest mistake I see buyers making is stepping up and paying cash for these things.  The property I'm talking about someone stepped in and paid about $250,000 cash for it (probably FMV if clean).   The cleanup of it is easily another $250,000 and 3-4 years minimum.  If the guy can ever resell it - it's more of a lottery ticket than skill/quality.    \n\nJust because you can afford to pay cash doesn't mean you should.  Only do it if you think you and your children will own it forever.   The gas station thing the guy owns a small towing company, maybe 4-5 tow trucks.  The real estate is probably half of that company's assets.  he threw that money away.  With the problem in place the property is worth $0.  ", "replies": [], "depth": 3}, {"id": "egjja3o", "text": "If you want some advice, in the conclusions section of the Phase 1, their will be a 'Recognizable Environmental Condition - REC'.  If you type that paragraph here I can probably help some more, or take it off line.  \n\nI'm wandering what their concern is - railroad, utility, gas station, storage tank, etc... and if it is on site or a neighbor.  \n\nBTW - 50% of Phase 1's that recommend Phase 2's are BS.  Most environmental consultants are in the business of more business.  The main consultant I use went through a lot of hassle to get registered with my national banks but it was worth it because they will work hard NOT to do a phase 2.  ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "egiuzin", "text": "I'm a real estate lawyer.  This is a good article that outlines the general framework of strict liability and defenses under CERLA: https://www.americanbar.org/groups/young_lawyers/publications/the_101_201_practice_series/landowner_defenses_to_cercla_liability/. Current landowner may or may not be liable.  If the Phase I recommends a Phase II, don't buy it without one.  You could invalidate your defense to strict liability because you didn't take all appropriate inquiries. Any lender will also make you get the Phase II before they'd finance it.", "replies": [{"id": "egixbof", "text": "I am continuously amazed by Reddit, and mostly the great folks that comprise it.  These are great questions and answers.  I really enjoy reading, and thank everyone for their contributions- it\u2019s refreshing to see people helping one another!", "replies": [], "depth": 2}, {"id": "egj3j69", "text": "Thank you very much for the link. ", "replies": [{"id": "egj7ory", "text": "Just a few follow up thoughts on this.  I wouldn't hesitate to ask the seller if you can contact the environmental consultant.  It's important to understand what the Phase I has identified.  As I'm sure you can imagine, environmental consultants want to minimize their exposure as much as possible, so they identify everything under the sun.  In many cases it's not indicative of a broader problem.  But it can be.  Talk to the consultant if you can.  They'll often give you a better picture of the risk profile over the phone.  I would also make sure that your lawyer primarily practices in real estate or environmental law.  I see a lot of people moonlighting in this space and that can be dangerous, especially when it comes to understanding risk like this.  You want a lawyer that understands the Phase I and can give you knowledgeable advice on the potential risks.  Best of luck!  ", "replies": [{"id": "egj7zzb", "text": "Thank you for the recommendation, my lawyer does seem to be moonlighting in this space now that you mentioned it. I will find a environmental lawyer. \n\nThanks again ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]