The first step the purchaser of real estate should consider is the completion of a Phase I environmental audit.  The Phase I is intended to permit a user to satisfy one of the requirements to qualify for the innocent landowner defense to CERCLA liability.

The goal of this assessment is to identify the presence or likely presence of any hazardous substances or petroleum products on a property,  under conditions that indicate an existing release, a past release, or a material threat of a release of hazardous substances or petroleum products into structures on the property or into the ground, groundwater, or surface water of the property. 

 If the assessment provides any evidence that contamination exists further investigation is required. The Phase II assessment goes into a much more rigorous analytical testing of the property. The soils and groundwater are sampled from the perimeter of the property and tested for contamination. If contamination is found a decision must be made whether to continue to pursue this parcel of real estate.

 A review of your alternatives with an environmental engineer is imperative.  Your options, depending on the type of contamination, can range from simply monitoring the contamination; and allowing the naturally occurring bacteria to break down the hazardous waste to acceptable limits known as “no further action”, to  a full-scale removal of the contaminated soils and groundwater at a cost of millions of dollars which are usually reserved for sites on the National Priorities List. 

There are a multitude of clean-up options that fall between these two extremes. The purchase of a property should not be ruled out just because it is contaminated. One option a buyer has is to purchase environmental insurance that will bring certainty to your remedial expenses. 

 Financial consideration should be given to the cost of clean up and factored into your financial model for making purchasing decisions.

RESG Companies has had experience with contaminated properties and is ready to assist its clients in determining what action to take if the property is contaminated.