Describe How an Interest in Property Can Result in Liability

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The Answer is Much of the environmental legislation places responsibility for the clean-up of contaminated land on the current landowner. This often occurs where an owner becomes aware of contamination which occurred in the past during a time when the land was owned by others. Some recent case law has resulted in parties becoming responsible for clean-up upon acquiring interests which are less than full ownership in the property. Acquiring possession of land may be enough to trigger these responsibilities. Mortgagees entering into possession to realize on their security have been deemed owners and required to clean-up contaminated property. Municipalities seeking to dispose of properties for tax arrears may also fall into the category of owner for clean-up purposes. Arguably, any action which creates an interest in property may be deemed sufficient to assume some degree of responsibility for environmental matters. Most parties contemplating the acquisition of an interest in property require an environmental audit which reduces the risk of having to assume clean-up responsibilities by pre-testing the land for contaminants.
This situation creates a dilemma concerning properties which are known to be contaminated. No one will accept any interest in them for fear of being deemed responsible for expensive clean-up activities and there is no current provision for government clean-up.

Describe How an Interest in Property Can Result in Liability

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