The Phase One Environmental Site Assessment (ESA) is, was and always will be a key component in evaluating environmental conditions at a property. Used to identify potential and/or existing recognized environmental conditions (RECs) at a property (both developed and undeveloped), the Phase One Site Assessment should be a sought by buyers, sellers, lenders, developers and brokers. Identification of potential on and offsite environmental due diligence concerns can be identified through interviews, a site reconnaissance and historical research of property.
Although a Phase One ESA is not legally required, without a Phase One a purchaser or receiver of a property does not obtain Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) protection and likely acquires all legal liability associated with any preexisting environmental conditions (and contamination) at the property. Because of this, lenders typically require a Phase One prior to a property transaction, as site contamination cleanup expensive can often exceed the value of a property.
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