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Commercial Property Environmental Site Assessments

October 14, 2011 · No Comments · Uncategorized

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Environmental issues can get very complicated. When checking for environmental problems, especially on commercial properties, many real estate attorneys advise their clients to have what is called a Phase I Environmental Site Assessment conducted. During a Phase I Environmental Assessment, an environmental professional will do a property search and often visit the site to check for environmental problems.

During the property search, the environmental professional will review what are called Sanborn maps. These maps are really just historical plat maps that show many of the previous owners and uses of the property. They are dated by year and can be found at the courthouse or public library. If you are reviewing a property and find potential signs of environmental contamination, or suspect the area was once used for something that could have caused environmental contamination, you should probably consult with an expert or avoid the property.

During a Phase I Environmental Assessment, environmental professionals review topographic maps, county maps, and geologic maps, as well as call state professionals familiar with the area, to learn about area groundwater, soil conditions and any nearby contaminated sites. As part of their assessment, they scan for many of the same things discussed above to determine if there is any reason to suspect the property has current environmental contamination or could become contaminated in the future.

After doing the Phase I Environmental Assessment, a report is prepared. If potential environmental problems are found, the buyer either walks away from the real estate deal or he/she may ask the owner of the property to perform a Phase II Environmental Assessment. During a Phase II Environmental Assessment, samples of soil and possibly groundwater from the site are often collected and the samples are sent to a laboratory to determine if environmental contaminants above regulatory levels are present on the property. Working as an environmental professional for over 15 years, I have personally done many Phase I and II investigations. In most cases, I have found that common sense prevails during these investigations. Always remember the following:

If you would not want to live in or near the property for any reason, do not buy it or bid on it. Look on topographic maps and county maps for nearby undesirable neighbors like landfills or waste sites. Drive by the property to see what the neighbors look like. Any nearby commercial or government properties should be scrutinized carefully. Look for obvious signs of contamination on or near the property using the above guidelines.

Flooding is a very common environmental problem that can impair or, in some cases, ruin a real estate investment.
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