Environmental Due Diligence
If you’re acquiring a new property, whether it be for residential or commercial purposes, environmental due diligence is crucial. Environmental due diligence uncovers any hidden liabilities that any property could be affected by. If you don’t do proper due diligence on a property, you could be putting people’s health and safety at risk, and it could come back to hurt you and your business legally and financially. That’s why it’s vitally important to have environmental due diligence performed before going through with any real estate transaction.
What is Environmental Due Diligence?
Environmental due diligence is an investigative process in which a property is assessed for environmental contamination, such as groundwater or soil contamination. A professional environmental due diligence consultant abides by standards set out by the Environmental Protection Agency when auditing a property for environmental risks.
Carrying out environmental due diligence may result in the discovery of hazardous materials and chemicals on a property. Knowing whether a property is contaminated or not gives you the necessary information to go forward with a deal or not. Upon discovery of contamination, it’s possible to require the previous owner to clean up and decontaminate the property. Or it could result in you declining a deal entirely. The important thing is that you have the knowledge to act according to the results of an environmental due diligence report.
The Importance of Environmental Due Diligence
Environmental due diligence is of utmost importance for the health and safety of the people who are going to be using the property day in and day out. Not getting an environmental assessment means you could be putting your or others’ health and safety at risk unknowingly.
Additionally, there are not only health and safety concerns but also your legal and financial liabilities to be concerned with. Failure to adhere to environmental regulations could put your organization at risk of facing litigation or paying a hefty fine.
Environmental due diligence will prevent you from financial and reputational harm to your organization before it’s even a possibility to become a problem. Having a scientific understanding of a property means you can pass on properties that could put you at risk of a lawsuit and move forward with properties that are environmentally sound.
Hire An Environmental Due Diligence Consultant
If you are performing environmental due diligence on a building that was built prior to 1989 and you have concerns about asbestos-containing materials, ask your environmental professional about collecting asbestos samples during the site visit. It’s a low-cost way to make a more informed decision about the property.