Environmentally related hazards can be a source of high risk and potential liability to purchasers, governmental entities, an insured institution, or service corporation in connection with acquisitions, mortgage or commercial loans and real estate investments.

Problems with pollution and hazardous waste contamination have grown as federal, state and local governments have passed comprehensive environmental regulations and laws imposing liabilities on landowners and others for cleaning up the environment. Purchasers and lenders must be aware of and concerned with regulations that impose clean-up liability on an absolute or strict liability basis, particularly when governments have the right to assign liability to persons or entities no longer holding title to the property.