PFAS and Real Estate Liability
PFAS contamination has created significant liability and disclosure challenges in real estate transactions. Properties near military bases, industrial facilities, and PFAS-using businesses face devaluation, difficult financing, and legal liability that complicate sales and development.
Property Disclosure Requirements
Several states require disclosure of known environmental contamination including PFAS in property sales. Michigan, Minnesota, and New Hampshire have specific PFAS disclosure provisions that affect sellers near contamination sites. Standard “as-is” sale disclaimers may not shield sellers from PFAS disclosure obligations.
Mortgage and Financing Challenges
Lenders increasingly require Phase I and Phase II environmental assessments for properties near known PFAS sources. PFAS contamination findings can prevent conventional mortgage financing and reduce appraisal values, stranding property owners in contaminated communities.
Brownfield Redevelopment
EPA’s Brownfields program provides grants and loans for PFAS-contaminated property assessment and cleanup. Successful PFAS brownfield redevelopments demonstrate that contaminated properties can be restored to productive use with appropriate remediation and liability protections.