Ensuring a safe, secure, and pollution-free environment for commercial properties is an essential requirement for every commercial property owner. Phase 1 Environmental Site Assessment is an essential part of environmental due diligence that helps identify whether any property is susceptible to potential environmental risk.
It involves evaluating soil, groundwater, and surface water contamination that present or past activities on the property might have caused. Additionally, it also analyses the potential future environmental risks of present practices. These help buyers or new owners of commercial properties to take necessary actions to reconsider their activities to reduce environmental hazards. The following section of the blog discusses the significance of Phase 1 ESA in detail.
The Benefits of Phase 1 ESA for the Buyers
There are some important benefits for buyers to get a Phase 1 ESA. First, the buyer would be liable for the past contamination if the phase 1 ESA is done after buying the property. This liability comes with huge cost implications. Moreover, it hampers the company’s reputation and value. Secondly, it helps property owners comply and qualify for innocent land owner’s defense. Innocent landowner tags help them to avoid the hefty cost of clean-ups. However, they must make sure that the phase 1 ESA is done based on the standard guidelines of ASTM 1527-13.
What is the Importance of Phase 1 ESA Report?
One of the significance of the Phase 1 ESA report is that it guides decision-making and helps make necessary changes as per requirement. It is mainly required for real estate transactions and conducted before handing over the property. The assessment is performed following the guidelines of the American Society for Testing and Materials (ASTM) Standard E-1527-13. This report is important to obtain to get sanctioned property loans and federal permits.
At What Stage Do You Need a Phase 1 ESA?
Phase 1 ESA is conducted generally before initiating any real estate transactions. For instance, if someone is looking for a property that may be only land or with a multistory building, he must get an ESA done before owning the property. It frees him from the liabilities of the past contamination done by previous activities.
If you skip this assessment, later on, you may have to bear the cost of cleanup that you are not responsible for. Moreover, it can impose additional charges in line with compliance breaches. So, it is extremely crucial to obtain an ESA report to safeguard your financial securities. Mostly, an industrial property that works with environmentally harmful materials mandatorily requires Phase 1 ESA assessment.
What is Included in a Phase 1 ESA?
A Phase 1 ESA provides a detailed report on the condition of a property based on past and current activities. Initially, it involves onsite inspection. Experts typically photographed the site and reviewed records to understand the condition of the property. This investigation reveals the potentially hazardous materials that the property is exposed to. Moreover, they might also interview current and past inhabitants of the locality to learn more about the kind of activities that were carried out. Additionally, whether they had any complaints or not. However, the investigation is only site site-based visual assessment without any lab test. This visual assessment would determine whether there is any for further assessment or not.
How to Get Access to Phase 1 Environmental Consultants?
Phase 1 ESA is typically conducted by local environmental engineering firms. These consulting agencies are equipped with high-end equipment and rich experiences to conduct a Phase 1 ESA accurately. Moreover, they provide a detailed and comprehensive report that helps stakeholders to easily decipher and make important decisions. However, it is important to conduct phase 1 ESA in the line of ASTM for flawless investigation.
Conclusion
The blog has discussed the significance of Phase 1 ESA in detail. Phase 1 ESA safeguards new property owners from financial liabilities of past hazardous practices and provides them innocent land owner title. Make sure you get Phase 1 ESA done before owning any commercial property by certified environmental consulting services in Texas. Certified consulting firms offer the best assessment and guidance based on ASTM guidelines.