Before purchasing a commercial property, it’s very important to conduct your environmental due diligence. For most commercial properties, a Phase 1 is a sufficient investigation to determine if there’s any sort of environmental problems. Often, if a Phase 1 comes back with a problem, there will be what’s called a Phase 2. A Phase 2 is an investigation that is required when there’s a significant environmental condition affecting the property. It’s very important that a prospective purchaser understand the environmental conditions that affect their property because many times the liability will run with the land, meaning that the new owner will be responsible for any cleanup even if it was caused by the prior owner.
This informational blog post was provided by Alexis Soterakis, an experienced New York Commercial Real Estate Lawyer.
