Frequently Asked Questions
Two-party Agreement (PDF or Word)
Three-party Agreement (PDF or Word)
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Protection from Liability
A settlement agreement and covenant not to sue (SACNTS) is a legally binding document that establishes liability protection for a
Bona Fide Prospecitve Purchaser
(BFP) from any known existing contamination at a site as long as the BFP brings the property into compliance in accordance with the
Remediation Regulations
. There are two types of agreements: a two-party agreement (PDF or Word) entered into between the Department and the BFP, who is referred to as the settling respondent; and a three-party agreement (PDF or Word) entered into between the Department, the BFP, and the current owner (
or responsible party
). The "Work To Be Performed" section of the SACNTS outlines what activities each party is responsible for performing.
Only BFPs are eligible for covenants not to sue and it is important for the BFP to remember that they need to obtain the SACNTS
BEFORE
closing on the property. The average SACNTS takes approximately 45 - 90 days to negotiate and finalize, not including the mandatory 14-day public notice requirement.
Private insurance is available on the commercial market to further provide protection for those involved with potentially contaminated properties.
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