Due Diligence Guide
Safeguard your property investment. Minimize environmental liability.
Thorough due diligence is essential when purchasing potentially contaminated property. Our step-by-step guidance ensures you minimize liability and lay the groundwork for responsible ownership and redevelopment.
DUE DILIGENCE MATTERS
Under federal law, property owners can be held financially responsible for contamination cleanup, even if they didn’t cause the problem.
This "Joint and Several Liability" provision underscores the importance of conducting due diligence before buying a property.
DEFENSE
Thorough due diligence to protect assets, mitigate risk, and strengthen legal defenses.
By completing proper due diligence, including All Appropriate Inquiries (AAI), you can:
Demonstrate a good-faith effort to assess the property’s environmental condition.
Qualify for the Innocent Landowner Defense under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Reduce liability for cleanup costs.
DEFINITIONS
Understanding each component of the due diligence process.
Comprehensive Phase I Environmental Site Assessment (ESA), Phase II ESA, and Baseline Environmental Assessments (BEA)s meet the legal requirements for the Innocent Landowner Defense, helping protect your investment and limit financial risk.
Phase I Environmental Site Assessment (ESA)
A review of a property’s history, current uses, and surroundings to identify potential environmental risks, without sampling.
A review of a property’s history, current uses, and surroundings to identify potential environmental risks, without sampling.
Phase II Environmental Site Assessment (ESA)
Sampling and analysis of soil, groundwater, or air to confirm and measure contamination
Sampling and analysis of soil, groundwater, or air to confirm and measure contamination
Baseline Environmental Assessment (BEA)
A report documenting pre-existing contamination to limit new owners’ liability, provided they don’t worsen it.
A report documenting pre-existing contamination to limit new owners’ liability, provided they don’t worsen it.
Documentation of Due Care Compliance
A plan to manage contamination safely and comply with regulatory requirements.
A plan to manage contamination safely and comply with regulatory requirements.
PROCESS
Phase I ESA: Step 1 in evaluating contamination risks through property history and site assessments.
Global Environmental’s Phase I ESA reports meet and often exceed ASTM E1527-21 standards. If a Recognized Environmental Condition (REC) is identified and cannot be mitigated, a Phase II ESA is recommended to confirm contamination through soil, groundwater, or air sampling. If contamination is present, we can submit a Baseline Environmental Assessment (BEA) to Michigan’s EGLE to reduce new landowner liability. We also prepare Due Care Reports with guidelines for safe contamination management and compliance.
Recent Projects
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Ready to discuss your due diligence needs with a qualified environmental professional?
Our process starts with a free consult and site visit to understand the specific needs of your unique project.
