What is an environmental site assessment and why is it needed?

When buying commercial real estate, the buyer or its lender will often require an environmental site assessment to be performed as a condition of purchasing the property. The environmental site assessment will identify any potential past, present, or future contamination liabilities on both the land and any improvements or buildings. The first step is a Phase I Assessment to see what has been at the property historically through examination of deeds and other recorded documents, aerial photographs, and a visual inspection of the property. If any possible issues are discovered in a Phase I Assessment, a Phase II will be conducted, which will include analysis of soil, air, groundwater, and/or building material samples taken from the property. If there are environmental contaminates present beyond acceptable levels, there is often a remediation plan required before any further actions can be taken on the property. Obtaining an environmental site assessment will provide valuable protections to the buyer of the real estate should an environmental liability arise after purchase that was not caused by the buyer.

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