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Phase I Environmental Surveys
A
Phase I environmental survey is a visual survey designed to disclose to a prospective
purchaser some of the environmental risks associated with a building purchase.
Phase I environmental surveys are often required by banks before they will grant
a mortgage on commercial properties. The banks are concerned that past environmental
problems have contaminated the property, and want to be sure there are no environmental
liabilities associated with the property before they grant a mortgage.
Phase I environmental surveys are generally not required on residential properties,
nor are they commonly performed on residential properties of fewer than four families.
If a house was never used for commercial purposes, there is probably little reason
to have a Phase I environmental survey.
Most Phase I environmental surveys are conducted according to standards set forth
by the American Society
for Testing and Materials (ASTM). Requirements include a visual survey
of the site, a visual survey of the surrounding sites, and searches of federal,
state, and local databases. Because a Phase I environmental survey is a visual
survey, underground problems will usually not be detected unless they have been
recorded in some environmental database.
If you buy a building, you also buy the environmental problems associated with
the building. You are responsible for the site's environmental cleanup even
if you did not contaminate the site. This is why many banks require Phase I environmental
surveys. Phase I surveys reveal problems such as:
A
Phase I environmental survey is different from and supplemental to a pre-purchase
engineering inspection. First, have an Engineer inspect the building.
If the pre-purchase engineering inspection does not reveal any serious defects,
then you should arrange for a Phase I environmental survey.
Even if you are buying the property without getting a bank mortgage, you should
have a Phase I environmental survey completed for the site. You will probably
sell the property some day. When you sell the property, the buyer will probably
have a Phase I survey, which may find problems. If you are not diligent prior
to your purchase of the site, you may be held responsible for the site cleanup,
even if the contamination had been caused by a previous owner or tenant. Extensive
environmental problems may reduce property values and jeopardize any future sales
of the site.
To
setup an appointment for a home inspection or building inspection, to find out about
other Engineering services, or for more information, call 800.640.8090
or click here to contact us
24/7 using the online contact form .
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