Commercial property transactions often involve environmental considerations that should be evaluated well before closing. Addressing environmental issues early helps buyers, sellers, lenders, and developers avoid unnecessary delays and make informed business decisions.

What environmental issues should be reviewed?

Common issues include historical contamination, Phase I and Phase II environmental assessments, underground storage tanks, ongoing remediation, permits, regulatory compliance history, hazardous materials management, environmental restrictions, and NJDEP records.

Why is early due diligence important?

Early environmental reviews provide time to investigate potential liabilities, negotiate contractual protections, obtain additional technical information, satisfy lender requirements, and determine whether remediation or other actions are appropriate before closing.

How can buyers and sellers reduce risk?

Coordinate environmental consultants, legal counsel, lenders, and other professionals early in the transaction. Maintain complete documentation, evaluate regulatory obligations, and address identified issues before finalizing purchase agreements or closing.

Common misconceptions

A successful property inspection does not necessarily eliminate environmental risk. Historical site activities and regulatory obligations may still require additional investigation or planning.

Key Takeaways

  • Begin environmental due diligence early.
  • Review environmental reports and regulatory records.
  • Coordinate legal and technical professionals.
  • Evaluate potential liabilities before closing.
  • Resolve environmental issues whenever possible before the transaction is completed.

When should you contact an attorney?

Consult an environmental attorney before closing on commercial or industrial property whenever environmental conditions, regulatory obligations, remediation activities, or contractual liability issues could affect the transaction.

Contact The Law Office of Alan S. Ashkinaze

The Law Office of Alan S. Ashkinaze advises buyers, sellers, developers, lenders, and commercial property owners throughout New Jersey on environmental due diligence, regulatory compliance, remediation matters, and commercial real estate transactions.