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Phase I Environmental Site Assessment

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Phase I Environmental Site Assessment

Investigation of real property to determine the possibility of contamination, based on visual observation and property history, but no physical testing. Under new Environmental Protection Agency regulations that went into effect on November 1, 2006,a Phase I,as it is called for short,will be mandatory for all investors who wish to take advantage of CERCLA defenses that will shield them from liability for future cleanup,should that prove necessary. The new Phase I rules, called “All Appropriate Inquiry” or AAI, also require more investigation than previously mandated. Investors can expect to see dramatic price increases over prior experiences.



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ASTM has updated its standards for a Phase I environmental site assessment.
Prospective buyers can use the reports to conduct property due diligence or Phase I environmental site assessments required by mortgage lenders.
It is good risk management to complete a Phase I Environmental Site Assessment to establish a baseline, and clean up existing pollution before liability for the property is assumed.
 
 
 
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