Contact OER If Contamination Blocks a Land Purchase

Sometimes parties to a real estate transaction cannot agree on terms for the sale of a property, particularly price, because of a disagreement between buyer and seller on the extent of contamination.

In such circumstances, the prospective buyer or seller can meet with OER, discuss the site, and develop a work plan for the site’s investigation. OER will approve the work plan, which the party, assisted by an environmental consultant, can then conduct. When soil, groundwater and soil vapor samples are collected, analyzed and a laboratory generates results, OER will review the information with the requesting party and determine what remedy would be necessary for the property’s development. If the party determines that an OER-approved remedy would be advantageous, the party’s consultant would prepare a remedial plan, and submit it to OER. The Office would approve the remedy when the site enrolls in the city Voluntary Cleanup Program.

At that point, the cost of remediating the site would be known and the party that obtained the approved remedy can share it with the other party to the land transaction. With the uncertainty about site contamination resolved, the parties can resume negotiations and agree on terms to a sale.

During this time, while the site is enrolled in the city program, it would be in Standstill Mode and not be required to implement the approved remedy. When a new owner was ready to develop the property, cleanup of the site would resume.

A party that conducts a site investigation of a property within the city is eligible for a $10,000 city brownfield incentive grant to defray the cost of the investigation.