Most lenders in the context of commercial real estate require an environmental site assessment, notwithstanding that the chance of there being a problem might seem remote (depending on the type, condition, and history of the property). It is the possibility of a problem that could result in catastrophic liability exposure for the buyer and buyer’s lender, even if the buyer didn’t cause the problem, that necessitates an environmental site assessment. A “Phase I” assessment generally involves an inspection of the property and review of an assortment of property records, but does not usually involve borings or drilling, or testing soil or water samples. The “Phase I” inquiries and investigations are customarily conducted during the due diligence inspection period. If, In the course of a “Phase I” assessment evidence arises that might warrant further investigation, the need for boring and soil and/or water sampling may be necessary. These enhanced investigations are referred to as a “Phase II” assessment, and can be quite expensive. At this point a buyer usually has an opportunity to opt out of a contract – provided the contract was written with such a contingency.