Phase I ESA
See Environmental Site Assessment
Frequently Asked Questions about Phase I Environmental Site Assessments (ESA)
What is a Phase I ESA?
A Phase I Environmental Site Assessment (ESA) is a formal study conducted to identify any potential or existing environmental contamination liabilities on a property. It is typically required during due diligence before a property acquisition or financing.
Where can I find more information about Phase I ESAs?
For more detail, refer to the related glossary entry titled Environmental Site Assessment and ESA.
What happens if a Phase I ESA identifies contamination?
If contamination or risk of contamination is identified, a Phase II ESA may be required. This follow-up study involves testing soil, groundwater, or building materials to confirm and quantify environmental concerns.
Is a Phase I ESA always required in a real estate transaction?
While not legally required in all cases, a Phase I ESA is strongly recommended for any commercial real estate transaction and is often required by lenders and institutional investors to assess environmental risk.
How is a Phase I ESA different from a Phase II ESA?
A Phase I ESA involves a review of records, visual inspection, and interviews to assess potential environmental concerns. A Phase II ESA goes further by collecting physical samples and conducting laboratory testing.
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