News
August 2009 Enewsletter - What You Need to Know About Environmental Due Diligence
Carrying out due diligence is an essential step in a property or real estate transaction. For many sites, conducting environmental due diligence studies can help ensure that a deal stays on-track and any issues regarding air, soil and water quality at the site are uncovered and remediated or accounted for in negotiations.
Download our checklist to help execute your next environmental due diligence project.
Here’s a quick-glance guide to the steps in environmental due diligence process:
Determine which type of due diligence is required.
An ASTM Phase I Environmental Site Assessment (ESA) is usually conducted at the request of financial institutions or lenders and is a good idea for any property purchase where soil, groundwater or air conditions may be impacted.
Select a qualified environmental consultant.
If you are executing due diligence for a regulatory agency, work with an environmental consultant such as Piedmont Geologic who has appropriate state qualifications.
Partner with an environmental consultant who understands the entire process.
Should the Phase I ESA uncover problematic environmental conditions, then a Phase II ESA is required. The Phase II ESA uses site sampling to determine if previous onsite or offsite hazardous uses have impacted the soil and/or groundwater conditions. The goal of the Phase II is to quantify the extent of the cleanup and predict remediation costs.
Negotiated agreements must comply with current environmental law.
All parties that are involved in the potential transaction should be notified and negotiations begin to determine the appropriate course of action.
This short tutorial is a good introduction to the property due diligence process. Or give us a call for assistance at 919-854-9700.
