A previous blog post addressed lender liability for environmental conditions on property a lender might acquire as a result of foreclosure. Another issue lenders in Connecticut must consider prior to foreclosing on a property is the Connecticut Transfer Act. The Transfer Act requires transferors of “establishments” to make specific disclosures to transferees regarding the environmental condition of the property being transferred and also requires one party (usually either the transferor or transferee) to be a certifying party, i.e., the party responsible for all investigation and remediation of the property in accordance with Connecticut’s Remediation Standard Regulations (or “RSRs”).
An establishment includes properties where certain enumerated operations have occurred at any time since May 1, 1967: dry cleaners, auto body repair, and furniture stripping; as well as any property where greater than 100 kg of hazardous waste was generated in any one month, on or after November 1, 1980; and/or where any hazardous waste, generated at a different location, was recycled, reclaimed, reused, stored, handled, treated, transported or disposed of.