Buyers and sellers of industrial property should evaluate environmental conditions early in the transaction process. Environmental due diligence, regulatory compliance, and remediation obligations may influence purchase agreements, financing, and closing schedules.

Who may be responsible for site remediation?

Responsibility depends on the specific facts, applicable laws, contractual agreements, regulatory requirements, and the property’s environmental history. Determining responsibility often requires a careful legal and technical analysis.

Why is environmental due diligence important?

Environmental assessments can identify known or potential contamination, evaluate regulatory obligations, and help parties understand environmental risks before completing a transaction.

What issues should buyers and sellers review?

Review prior environmental reports, remediation status, NJDEP records, permit history, historical site uses, ISRA applicability where relevant, and any ongoing environmental obligations that could affect ownership or operations.

Common mistakes to avoid

Proceeding without adequate environmental due diligence, assuming contamination responsibilities automatically transfer, overlooking historical operations, or failing to address environmental issues in transaction documents.

Common misconceptions

Not every industrial property requires remediation, and responsibility is not determined solely by current ownership. Each transaction should be evaluated on its own facts and applicable law.

Key Takeaways

  • Conduct environmental due diligence early.
  • Evaluate potential remediation obligations.
  • Review regulatory history and permits.
  • Coordinate legal and technical professionals.
  • Address environmental risks before closing.

When should you contact an attorney?

Consult an environmental attorney before buying or selling industrial property, negotiating environmental provisions, evaluating contamination issues, or addressing NJDEP remediation requirements.

Contact The Law Office of Alan S. Ashkinaze

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