| When purchasing a commercial property, it is | | | | involves taking soil and water samples on and |
| always a smart move to conduct an | | | | near the property and can involve installing |
| environmental assessment during your Study | | | | monitoring wells. If indicated, a broader sampling |
| Period. Although there are many types of | | | | of any materials believed to contain asbestos and |
| assessments which can be done, the most | | | | or lead will also be done. |
| common in Maryland are Phase I and Phase II | | | | Naturally, there is a great cost differential |
| environmental studies. If a lender is involved, it will | | | | between a Phase I and Phase II study. In |
| often dictate what type of study needs to be | | | | Maryland, a Phase I study costs approximately |
| done, however, even without a lender, a minimum | | | | $2,000 while a Phase II study can cost over |
| of a Phase I study is recommended. | | | | $10,000. The critical element is to have the |
| What's the difference? | | | | studies completed during your Study Period so |
| Generally, a Phase I study consists of a record | | | | that in the event problems are found, they can |
| search within a 1 to 3 mile radius of the property. | | | | be rectified or you can "kick out" of the contract |
| The record search is to find contamination in the | | | | and receive your deposit money back. |
| area or specific problems with neighboring | | | | A few key points to remember --o Most lenders |
| properties. It will review local, state and federal | | | | have a list of environmental companies on their |
| environmental databases. The environmental | | | | "approved list" -- these may or may not be the |
| company will also review the following items:o The | | | | best environmental companies to use. Ask your |
| historical use of the property and the neighboring | | | | lender who's on the list and consult with someone |
| propertieso The legal description of the propertyo | | | | else (preferably a knowledgeable commercial real |
| Hazardous substances identified on the property | | | | estate broker) to see if there's a better company |
| or believed to have been used on the property. | | | | in the area. It's not uncommon for lenders to use |
| As part of this process they will often interview | | | | environmental companies from a different state.o |
| current owners and past owners who may be | | | | Typically the lender has to order the |
| knowledgeable about the property.o Wetlands on | | | | environmental report (even though you pay for it) |
| or near the propertyo Above ground and | | | | and it may be returned in their name -- this |
| underground storage tankso Electrical | | | | means that they are the ones protected by the |
| transformers and equipment which may contain | | | | Liability Insurance of the environmental company. |
| PCB'so The presence of lead paint or asbestoso | | | | Always try to have the report issued in your |
| Any indication of ground water contamination | | | | name as well. |
| Generally, a Phase II environmental study is | | | | Please feel free to call if you have any questions |
| "triggered" by a Phase I study which indicates a | | | | regarding the above or would like any free |
| problem in any of the above areas. Depending on | | | | referrals to the professionals mentioned. |
| the problem found, a Phase II study generally | | | | |