What is the “bona fide prospective purchaser” defense under CERCLA and the Texas SWDA?

The bona fide prospective purchaser (“BFPP”) status exempts from CERCLA and Texas SWDA liability those who in good faith purchased contaminated property for which they did not contaminate, so long as they meet eight separate criteria. 

Most notably, the owner must establish that it:

  • Purchased the property after the hazardous substances were spilled;
  • Made all appropriate inquiries before it purchased the property;
  • Provided all legally required notices about the hazardous substances; and
  • Took steps to stop any ongoing spill, prevent future spills, and limit the exposure from past spills.  An owner satisfies the “all appropriate inquiry” in the same manner as discussed earlier. 

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