When buying real estate, the phase 2 environmental report is one of the most important elements on any checklist. There are several critical reasons why a comprehensive environmental report should be produced.
This phase 2 phenomenal report must be made properly. Under current environmental laws, not defending yourself with a comprehensive report can cost more than the full cost of buying a project.
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So, when negotiating a sales contract, ensure that you have the right to undertake a Phase 1 review with additional Phase II review rights if Phase I is positive in any way.
Once the contract is signed, the priority is to hire a reputable environmental company to carry out the first phase of your development. The Phase I report includes an inspection of the property's historical use as well as a tour of the potential site with a visual inspection.
The lender usually maintains a list of approved environmental companies. So make sure you have this list before hiring an engineer. Phase II reports can cause additional problems. Some sellers prefer not to know what the problem is. Once the problem is identified, the seller can take responsibility for resolving the problem.
One possible solution is to have your attorney hire an environmental engineer. This creates a secret link that you no longer need to use to report results. So, make sure all the above steps are carefully followed to ensure a successful purchase.