Phase 1 Environmental
A Phase 1 Environmental Survey is a critical tool for property owners, developers, and lenders when buying, selling, or financing commercial property. In this blog, we will explore the reasons why a Phase 1 Environmental Survey is essential, what it entails, and how it helps you make informed decisions about your commercial property.
What is a Phase 1 Environmental Survey? A Phase 1 Environmental Survey is a comprehensive examination of a commercial property’s current and historical use, as well as its potential for environmental contamination. The survey provides an assessment of the site’s environmental risks and identifies any potential liabilities associated with the property.
Why do you need a Phase 1 Environmental Survey?
To Identify Environmental Hazards A Phase 1 Environmental Survey can help you identify any environmental hazards on your commercial property. For example, it can detect the presence of hazardous chemicals, oil or fuel storage tanks, asbestos, or lead-based paint. Knowing about these hazards can help you take necessary precautions and make informed decisions about the property.
To Meet Lender Requirements If you are financing your commercial property, your lender may require a Phase 1 Environmental Survey to assess the potential environmental risks associated with the property. This survey can help the lender determine the level of risk involved in lending money for the property, which can affect the loan’s interest rate and terms.
To Protect Your Investment A Phase 1 Environmental Survey can protect your investment by identifying potential environmental hazards and liabilities. If a hazard is discovered during the survey, you can address it before purchasing the property, which can save you time and money in the long run.
To Ensure Compliance with Environmental Regulations A Phase 1 Environmental Survey can help you ensure compliance with local, state, and federal environmental regulations. This can protect you from penalties and legal action that may result from non-compliance.
What Does a Phase 1 Environmental Survey Entail? A Phase 1 Environmental Survey typically involves a review of historical records, site inspections, and interviews with relevant parties. The survey also includes a review of government databases, such as the Environmental Protection Agency (EPA) and the Department of Environmental Quality (DEQ), to identify any previous environmental incidents or liabilities associated with the property.
Conclusion A Phase 1 Environmental Survey is a critical tool for property owners, developers, and lenders when buying, selling, or financing commercial property. It helps identify environmental hazards, meet lender requirements, protect investments, and ensure compliance with environmental regulations. If you are considering a commercial property, be sure to invest in a Phase 1 Environmental Survey to make informed decisions and protect your investment.
