Avoiding Environmental Liability – The Innocent Buyer’s ‘Exemption’

Sometimes it’s nice to work toward a goal. When buying property in BC, one sensible goal is to do all you can to qualify for a specific, purchaser-focused exemption from liability contained in the Environmental Management Act (EMA).

So – how does this attractive-sounding provision work? Well, when buying property, be familiar with section 46(1)(d) of the EMA and its main regulation, the Contaminated Sites Regulation (CSR). There you will find a roadmap to qualifying for the ‘innocent acquisition exemption’. In short, if the site was contaminated before you bought it, and you didn’t know it despite having done everything reasonably necessary to understand prior ownership and uses of the site, you may qualify. So, before property hunting, particularly for commercial or industrial property, take a look at the 46(1)(d) criteria, and the CSR. This way you can ensure you make what are termed ‘all appropriate inquiries’ and take a big step toward the protection of a full exemption from liability under the EMA. An environmental consultant or lawyer can help you meet the exemption criteria when buying potentially contaminated land. If an exemption is the goal, it might be well worth it.

If you have questions regarding the topics discussed in this post, please contact a member of our environmental law team, here.