Many state laws are now even stricter than federal laws. Buyers who unknowingly purchase contaminated property may be just as liable for cleaning up as the party who caused the contamination. Cleaning up environmental hazards can cost thousands and even millions of dollars. In some cases, the clean-up costs exceed the market value of the property. Private individuals can also order these inspections.
Environmental inspections are relatively new and they have their own terminology.
The following are the most common types of inspections, from least to most thorough. The inspections can begin at any level. For example, for sites with known contamination, you would probably begin with a Phase II inspection. Experienced appraisers and home inspectors can recognize most apparent environmental hazards. Some lenders now require a standard checklist for this type of inspection.