What does it mean when property has a "21E problem"?

There are laws concerning hazardous waste located on property that are in both our federal and state statutes.  In Massachusetts the statute covering hazardous waste is Massachusetts General Laws c 21E.  The statute and the regulations promulgated under it have set out a comprehensive list of metals and chemicals, including oil, that must be removed if they are found above certain concentrations in your property. 

There is a provision in both the state and federal statutes for a Super Priority Lien in the event that such materials are located in the ground of the property and they need to be removed.

In Massachusetts, the so-called Super Priority Lien does not apply to properties where the majority of the use is residential.  In other words, it does not have a senior priority to a first mortgage on the property.  As a result of that, the banks are far more focused when it comes to commercial development than residential to be sure that the property is "clean".  However, contamination can exist with respect to residential property.  Unless there is a reason to excavate, it may sit there forever.

Contamination is far more of a concern in areas outside the city where there are aquifers with wells that service homeowners.  The big concern is the dangerous chemicals or metals polluting the domestic water system such as they did in the city of Woburn some years ago which lead to the now famous litigation and movie which became a catalyst for environmental cleanup by both the state and federal governments.

If you have questions about this or any other real estate matter, please contact Tom Bennett at (617) 531-6574 or tvb@barronstad.com.