When a buyer purchases industrial or commercial real estate, it is important to understand the environmental condition of the property. Purchasers of property can be liable for the investigation and cleanup of underlying environmental conditions id they do not conduct proper due diligence. Often environmental problems lie hidden in on land or under a building and cannot be observed. A former owner property may have used tanks to store chemicals or petroleum. Chemicals may have spilled or been discharged to soils. Neighboring properties such as gas stations, dry cleaners or other industrial operations may be a source of groundwater or soil vapor contamination. An environmental consultant can assess the condition of a property by conducting an environmental assessment. Conducting a Phase I Environmental Site Assessment (Phase I) is now considered standard industry practice and is used as a means to limit liability. A Phase I report contains a review of regulatory records, past use and history of the property, neighboring properties of concern, an interview of key employees relating to environmental concerns that may be present, a site visit or walkover and other investigative elements. If a Phase I or environmental assessment reveals issues - known as recognized environmental conditions (RECs) - further investigation of underlying conditions may be recommended. At the Hessian & McKasy Environmental Practice Group we are involved with ordering environmental assessments, review and analysis of Phase I reports, issuance of environmental risk assessment letters and directing follow-up work that may be required to limit a party's liability and proceed with a property transaction.