Well that’s exactly the situation I think I’m in. A developer wants the property/house to build a condo of 6-8 units that are selling for $1 million each and he already owns an adjacent property. His offer is at least 25% higher than the norm but he wants an environmental assessment done as a condition of sale because a gas station used to be 100 yards away. He needs to make sure there’s no ground contamination that would have to be removed before he could re-develop it.
But I think he lied to me when he stated that removal of any contaminants is covered by the homeowners policy. I just don’t believe that’s true without a special rider on the policy and can’t believe my mother and stepfather would ever have thought of or agreed to that. I need to find the policy and then learn both the consequences of discovering there’s contamination and my future obligation to disclose it to any seller - commercial or private. It could materially change the value of the property once I know for sure. It might be better to not know and take a lower price (market value). I’m looking for a real estate lawyer who can address my concerns, all while I’m getting heirs yelling at me to “Sell now before the developer reduces his offer!” Yiyiyi.
Your advice to be careful is good. Thank you. Luckily, that’s my nature, to the supreme frustration of my siblings.
“I need to find the policy and then learn both the consequences of discovering there’s contamination and my future obligation to disclose it to any seller - commercial or private. It could materially change the value of the property once I know for sure. It might be better to not know and take a lower price (market value).”
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You are wise. This bid may result in you having to dramatically undercut the price. Who knows who would be doing the “environmental assessment” and their ties.
Be sure you don’t use anyone the developer may recommend to do the study or appraisal. Use your own.
LL here’s a thing you can do to help put your mind at ease about selling: Go to the place that keeps property ownership records. For me it would be the county courthouse but I don’t know your system. Look back as far as you can on the ownerships of yours and adjacent properties and if you can find an oil company, either owning or leasing, that might tell you the odds of having ground contamination.
As an example, back in the 80’s, we had the buried fuel tank panic, here in the Pacific Northwest. Shell oil voluntarily went out of business in the entire NW saying they didn’t have enough capacity to supply the area. That was “smoke” but they only kept a few stations that they actually owned. They didn’t want to even do inspections-—just walked away. So far as I know no one has ever found a leaky buried tank.
You’d be looking for a company that might have buried a tank on, or adjacent to, your property.
If the closest is 100 yards you have zero chance of oil contamination on your place unless you are downhill?
Be assured that your “buyer” has already looked at the ownerships. He’s making up the part about homeowners insurance. Your turn to play hardball. If he wants environmental inspections let him pay for them, sale or no sale. Don’t spend lawyer money for things you can do for yourself. Hold on and get your price.
Bit of a historical side note: Up thru the 50’s fuel, had to be stored above ground. But then the fire marshall guys got nervous and wanted all fuel tanks buried. But then the envirofreeks got nervous and worried if a tank might leak and get some dirt dirty. So in the 80’s everybody with a buried tank had to dig it up, test the ground, then re-bury it in a catchment. Some tanks are below grade but in lined catch pits but not covered. So there are a bunch of combinations to watch for.-——