Why Do Lenders Require Environmental Site Assessments ?

1. Goverment Compliance: Federal and state laws require property owners to comply with environmental mandates. Phase I studies (aka, Environmental Site Assessments) help discover any potential environmental liabilities connected to the property and guarantee adherence to rules.

2. Risk Management: Environmental Site Assessments help commercial owners manage risk. With an ESA, property owners can take the required action to avert expensive losses by recognizing potential environmental hazards on the property.

3. Due Diligence: The due diligence process for commercial properties involves a thorough Environmental Site Assessment. Prior to purchase, buyers could demand an evaluation to ascertain the property's environmental impact.

4. Property Valuation: Environmental liabilities impact the value of a property; and, if discovered, can be quite costly. On the other hand, a clean bill of health improves the property's value.

Phase I Environmental Site Assessments provide vital information to property owners about the environmental state of their land, which can have serious legal, financial, and reputational repercussions.