Environmental site assessments provide valuable information about a property’s environmental condition and potential liabilities. Buyers, lenders, developers, and investors frequently rely on these assessments to support informed purchasing decisions and reduce unexpected post-closing risks.

What is a Phase I Environmental Site Assessment?

A Phase I Environmental Site Assessment generally reviews historical records, regulatory databases, site conditions, and property uses to identify recognized environmental conditions without intrusive sampling.

What is a Phase II Environmental Site Assessment?

A Phase II Environmental Site Assessment typically involves environmental sampling or testing when additional investigation is warranted to evaluate potential contamination identified during due diligence or other site reviews.

When is a Phase II assessment appropriate?

Additional investigation may be appropriate when historical operations, visible conditions, regulatory records, or Phase I findings indicate potential environmental concerns requiring further evaluation.

Why are these assessments important?

Environmental site assessments help buyers identify potential liabilities, support financing, evaluate redevelopment opportunities, negotiate contractual protections, and determine whether additional investigation or remediation should be considered.

Common misconceptions

A Phase I Environmental Site Assessment does not certify that a property is free from contamination, and a Phase II assessment is not required for every transaction. The appropriate level of due diligence depends on the facts of each property.

Key Takeaways

  • Begin environmental due diligence early.
  • Understand the purpose of Phase I and Phase II assessments.
  • Coordinate legal and technical professionals.
  • Evaluate potential environmental liabilities before closing.
  • Address identified concerns before completing the transaction whenever practical.

When should you contact an attorney?

Consult an environmental attorney when environmental assessments identify potential concerns, negotiating purchase agreements, evaluating environmental liability, responding to regulatory issues, or planning redevelopment of commercial or industrial property.

Contact The Law Office of Alan S. Ashkinaze

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