Being thorough and performing work to the accepted standard of care may take more time, and a few more dollars, but if something critical to the property were missed in the assessment, the subsequent costs and losses could easily run into the millions. There is no cost efficiency in skimping on a Phase I Environmental Site Assessment . A properly performed Phase I investigation supplies in-depth environmental information about a property , thereby minimizing the risk and the associated liability of owning or financing an environmentally damaged property. The investigation is essentially a survey that examines current and past uses of a property, environmental regulatory actions pertaining to the property or to properties nearby, industrial processes on or nearby the property, and other factors that might result in some form of contamination of the property. A part of the Act provides legal protection to the property buyer and lender if a quality Phase I investigation is performed prior to the sale and an environmental hazard is discovered later.
Quality is key , before and after site acquisition.
I investigations are not created equal . Even proper procedure performed at the wrong type of property or in the wrong type of building can create enormous liabilities for a property owner. Lenders are in jeopardy of inheriting liability for a site when they make a loan and use the property as security. Only verifiable performance of due diligence can improve a lender's probability of obtaining a legal decision in favor of the innocent land owner defense. Even without a lien, a lender can become entangled in an environmental dispute through a business loan.