I’m looking at a deal where the seller will provide seller financing with non-recourse. However, there may be a chance that the site may
be contaminated. Overall, it’s a decent deal. I have not done Phase I yet, however, if in the case that it is contaminated,
how do I transfer or mitigate the risk to the insurance company or to the seller?
a) Could I have seller purchase a 10-20 year contamination insurance on behalf of the buyer?
b) Could I have the seller sign an agreement that the seller will be responsible for any contamination that occurred before closing?
c) Is there a way to bypass the Phase I and Phase II costs to the seller so there is no upfront fee during the due diligence?
d) Which insurance companies provide a good overall protection for pollution?
e) If the property is purchased as a LLC, will the “members” be personally liable be for the pollution cleanup if later is found
to be contaminated and the LLC does not have the ability to clean up the pollution or will the legal liability stop at the LLC level?
Thank you very much guys~