What is an environmental lien?
An environmental lien is a charge recorded against a property to recover the government's cost of cleaning it up. It stays with the land when it's sold.
In more detail
Federal Superfund law allows EPA to place liens for its cleanup costs. A separate windfall lien can apply when a cleanup raised the property's value. Many states have their own lien laws.
Under All Appropriate Inquiries, searching for environmental liens and recorded use limits is the buyer's job, usually through a title company. A Phase I consultant may not do it unless asked.
What it means when you buy
Ask your title company for an environmental lien and use-limitation search before closing. A lien can cost far more than the price discount that came with it.
How the pre-screen handles it
The pre-screen does not search title records. It flags the cleanup history that makes a lien more likely, so you know to ask.
Pre-screen a property before you spend on a Phase I
A desk review of one address: past uses from historical photos and maps, federal and state environmental records, and flood risk, ready usually within the hour. $100 for one report, or $100/month for 3.