Under what condition can new owners limit their liability for cleanup under SARA?

New owners can limit their liability for cleanup under the Superfund Amendments and Reauthorization Act (SARA) when due diligence was performed prior to purchasing the property. Due diligence typically involves assessing the environmental condition of a property to identify potential contamination issues. This process often includes conducting environmental assessments such as Phase I Environmental Site Assessments (ESAs), which can reveal past uses of the property, existing hazards, and any necessary remediation that may be needed.

By performing due diligence, new owners demonstrate that they had taken reasonable steps to understand the property's condition before acquisition. This proactive approach can establish a defense against liability for contamination that occurred before their ownership. This means they may not be held responsible for cleanup costs associated with pre-existing contamination if they acted in good faith and documented their findings.

In contrast, the other conditions listed do not provide the same level of protection. Simply purchasing property without inspections does not demonstrate awareness of potential environmental issues, while the conditions of abandonment or government supervision alone do not ensure that the new owners can limit their liability without having conducted the necessary due diligence beforehand.