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

Standard on
the Valuation of Properties Affected by
Environmental Contamination

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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