Establishments

• Businesses or properties that must comply with the property transfer law are known as "establishments." The law defines several types of establishments: any business or property that produced more than 100 kg of hazardous waste in any month, starting in November 1980; any business or property that handled hazardous waste, such as for treatment, storage or disposal; or any business or property where dry cleaning, furniture stripping or auto body repair was performed on or after May 1, 1967. The law applies to both the real property and business entities--meaning that if you sell a business that once handled toxic waste, you must comply with the law, even if you are not selling the physical property where the waste was handled.
  
  

Process

• During any sale of a qualifying establishment, one of eight forms must be completed and submitted to the Connecticut Department of Environmental Protection. Generally it's the seller who completes the form, but a seller and buyer can negotiate this. It's an important matter, because whoever signs the form as the "certifying party" will be on the hook for any necessary cleanup. The department reviews and approves the form (or sends it back if it's not completed properly). Once the forms is approved, an investigation may begin--paid for by the certifying party--into the extent of the contamination and whether any cleanup is needed. The department must approve any cleanup plans. The process can take years.
  
  

Forms

• There are four possible forms that can accompany a sale, and there are separate versions of each form for businesses and real property, making a total of eight forms. Form I states that an investigation has already been performed and that there is no contamination, and therefore no need for cleanup. Form II states that the establishment was formerly contaminated but that a cleanup has been already performed and approved by the state. Form III states that the environmental conditions are unknown or that there has been contamination but no cleanup. Form IV states that there has been contamination and that a cleanup has been performed, but that monitoring will be necessary--for example, to check groundwater.
  
  

Penalties

• Penalties for violating the act can be steep--up to $25,000 for every day that the transfer is in violation, plus up to a year in prison. If the violation is deemed to be criminally negligent, the penalty can rise to $50,000 a day, plus up to two years in prison.
  
  

Exceptions

• Certain property transfers are not considered "sales" by the act and are therefore not subject to its requirements. These include foreclosures, inheritances and the sale of a minority interest in a business.