TABLE OF CONTENTS In Sec. 8.1 , Robert Rafson discusses closure. The developer now counts either profits or losses, sells the property, and fulfills all obligations to all the parties involved prior owners, new owners, regulators, and contractors.
In Sec. 8.2 , Ernest Di Monte deals with the accounting aspects of the sale.
Robert Rafson
Contracts for the sale of a cleaned-up site may be more complicated and delicate to negotiate than those for almost any other type of real estate sale. There may be requirements for indemnification of the buyer and other stipulations by the buyer that may erode the developer s profit.
Indemnification of the buyer is one of the most difficult requirements for a developer to accept. Often the buyer wants complete and unconditional release from liabilities that arise from the environmental condition of the site. It is difficult for the developer to assume these open-ended liabilities and to protect the buyer from problems either known or unknown. This kind of indemnification is additionally difficult if either legislative or engineered barriers are used to separate humans from exposure. There still could be lawsuits over the contamination and its effect on the neighboring property, the value of the property, or perceived health problems. These types of indemnification should not be underestimated. There is a fairly large amount of case law to indicate that the population does pursue owners and operators of properties for these issues, and therefore any developer must think about these issues before beginning the redevelopment of a...
