Responsibility for ISRA Cases During Foreclosure

Posted on May 4th, 2021

Foreclosure notice and keys on a court table.

When foreclosure occurs at an industrial property, determining the responsible party for new and existing ISRA cases may come down to a decision in court. 

An industrial establishment becomes subject to ISRA prior to the sale or transfer of the establishment, or upon the cessation of its business operations. Per the ISRA rules, the original owner and/or operator of the industrial establishment are deemed responsible for the remediation. But where does the responsibility fall if the sale or transfer of an ISRA subject property occurs as a result of a foreclosure? 

There are a few scenarios that can occur: 

  1. If there is already an existing ISRA case and no additional ISRA applicable operations have occurred since the first ISRA trigger, no additional ISRA cases are created and the original owner and/or operator remains the only responsible party. 
  2. If a new industrial establishment operated subsequent to the 1st ISRA trigger, a 2nd ISRA trigger occurs and a new ISRA case is created. 
  3. If the responsible party for the 1st ISRA case chooses to repurchase the property, they can take responsibility for the 2nd ISRA case and merge the case timeframes under one PI Number. 
  4. If a new buyer purchases the foreclosed property, they can choose to take responsibility for the 2nd case under a Remediation Certification and/or Administrative Consent Order. Under this scenario, a remediation waiver may be applicable.  
  5. If the foreclosed property is not sold and/or the municipality undertakes the remediation of the property, the Superior Court may decide to impose a lien against all real and personal property owned by the most recent owner or operator until the costs of the remediation have been paid Under this scenario, a municipality acquiring an industrial property through foreclosure would not be subject to ISRA.  

If you own or plan to purchase an industrial property that may be subject to ISRA, please contact us at 908-218-0066 or to learn how we can assist you through the process. 


Timothy Beach 

Project Manager 

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