Maryland Home Improvement PSI Practice Exam

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Prepare for the Maryland Home Improvement Test. Study using flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel on your exam!

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If hazardous waste was dumped on a property before its sale, who is liable for damages under CERCLA?

Seller.
Agent.
Company that manufactured the waste.
Federal government.

The correct answer is: Seller.

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) establishes strict liability for parties responsible for hazardous waste disposal. Under CERCLA, the seller of a property may be held liable for damages if hazardous waste was dumped there prior to the sale, even if the seller was not directly involved in the dumping. This strict liability means that the seller cannot defend against liability by claiming they did not know about the contamination. In this context, the seller is ultimately responsible for the condition of the property, including any pre-existing hazardous waste issues. The other parties mentioned, such as agents or the company that manufactured the waste, do not bear the same level of responsibility under CERCLA when it comes to the specific liability for the property being sold. Moreover, the federal government does not assume liability in this situation, as it enforces the law but does not take on liability for private property sales. Thus, the seller’s liability underscores the importance of due diligence and environmental assessments when transferring property ownership.