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Innocent Purchaser

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An individual who, in Good Faith and by an honest agreement, buys property in the absence of sufficient knowledge to charge him or her with notice of any defect in the transaction.

An individual is an innocent or goodfaith purchaser when he or she buys something, paying valuable consideration, without actual or constructive notice of any legal infirmity in the sale. The purchaser of a gold bracelet for $500 from a jewelry store cannot be charged with notice that the bracelet was stolen.



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The EPA is to be commended for its actions in this endeavor, which ensure that innocent purchasers who are interested in redeveloping brownfield properties can do so without fear of retribution under the Comprehensive Environmental Response, Compensation and Liability Act, also known as Superfund," said NAHB president David Wilson.
In 2002, the Small Business Liability Relief and Brownfields Revitalization Act (43) clarified CERCLA's inquiry requirement, which for years was the operating standard for determining whether, in the language of the Act, the innocent purchaser "had no reason to know" of possible contamination, (44) but the Act did not change the fundamental principle of unlimited status liability for one who holds title at the critical time when cost recovery is sought and does not fit an immune category.
The innocent purchaser defense now helps to limit the owner's liability for hazards caused by previous owners or surrounding property owners.
 
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