KEY CONCLUSION: Condominiums owners share ownership with others but still have possible significant financial liability and should demand complete due diligence.
Commercial and industrial condominiums are individually owned portions of commercial properties that have shared legal and environmental liabilities. The shared ownership reduces the individual liability of each owner.
However, there are numerous examples of condominium complexes that have been constructed on former factory or other industrial sites and gasoline stations. There are also numerous cases of large environmental remediation costs that can exceed the value of the Property.
Therefore it is still important to determine historical uses and potential liabilities associated with the entire condominium complex. The condominium association should be made aware of environmental issues and should disclose previous environmental investigations to all prospective purchasers.