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Old 02-25-2013, 03:24 PM
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cindyb cindyb is offline
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Join Date: Jan 2008
Location: KY
Posts: 354
An idea of what we are looking at

http://www.iaao.org/uploads/contaminationfstd.pdf

Standard on
the Valuation of Properties Affected by
Environmental Contamination

Quote:
4.4.2 Selling Contaminated Property
Buyer reluctance often focuses as much on the potential
for additional undisclosed problems as on contamination
already known and discounted. To facilitate a sale, the
seller may be required to include indemnity as a contingency
for future liability. This provision often reestablishes
a market—and a market value—where none
seemingly existed. However, in cases of severe contamination,
with ongoing cleanup anticipated, the seller
may not be able to obtain a bond or provide indemnification
for the full amount of the anticipated costs. In
these cases, a sale may not be possible or the sale price
may have to be reduced, although the property may
retain a value in use (see section 4.1 and 7.4). As the
Washington Board of Tax Appeals held in Salmon Bay
Terminals v. Noble (1996), the sale of a contaminated
property should be given great weight because it indicates
the risks associated with that property.
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