A state of emergency has been called in a small northwestern Newfoundland community amid safety concerns, after an unexplainable landslide dumped soil into the ocean.

A team of engineers was brought into Daniel's Harbour to assess the risk after a landslide last Friday morning, according to Mayor Steve Carey.

"We received a copy of the recommendations and report yesterday morning," Carey told CTV.ca in a telephone interview from his office on Wednesday afternoon.

"The report said the area was considered unsafe and there were immediate risks to persons and property in the area."

The state of emergency was called at about 6:30 p.m. local time on Tuesday, he said.

The town has set up a restricted buffer zone extending about 300 metres from the eroded cliff, forcing the closure of a grocery and liquor store, and the evacuation of three families from their homes.

One of the residents forced to leave was 87-year-old Mary House, who had lived in her home for 49 years.

The fate of her home may not be decided for weeks, or even months. But even if she does move back, she said the possibility of another landslide will remain a concern.

"I don't know. They just said, 'Expect anything,'" House told NTV News.

The small town, which is located on the western side of the Northern Peninsula, has a population of about 350. The loss of the grocery store has cost them four jobs, and Carey said he will ask the provincial government if any compensation is possible.

"I'm sure there's going to be a loss of business and a loss of revenue. Four people have been put out of work as of last night," Carey told reporters.

Officials are not yet certain what prompted the landslide, which occurred about 80 to 85 feet from a highway. Although, the cliffside is comprised of clay and gravel, which can become unstable when wet.

"As of yet, there is no idea what precipitated the landslide," he said. "It was not raining. The weather was reasonably co-operative last week."

The landslide sent between 20,000 and 30,000 cubic metres of soil, which amounts to about 2,000 dump-truck loads, into the ocean.

"Basically the way the community is laid out, it runs along a highway and there are houses on either side. The houses on one side of the highway are between the highway and the ocean right at the cliffside," NTV reporter Don Bradshaw, who is covering the story, told CTV.ca.

Part of the area that was washed away in the landslide was part of the cliffside, he explained.

"There were houses on the edge of the cliffside and now I guess they are even closer to the cliffside," said Bradshaw.