Phase 1 Lite
Sometimes when clients are looking for Environmental Due Diligence for a commercial property transaction they want something smaller, less expensive and possibly faster than the full Phase 1 Environmental Site Assessment (ESA).They wish they could find a Phase 1 Lite. There are good reasons to want less than a full Phase 1 ESA. Generally, the reasons have to do with cost or a hunch that the risk on a particular site is low. People feel vulnerable when entering into a large purchase without doing their homework. They want something for the file before they take out a loan, or lend money, on a property.
Environmental Screens are fast and inexpensive. Done in two to three hours, they include a very high level pass of environmental concerns, laid out in a radius map format with a corroborating database listing. You can see how far from your site the environmental concerns are on the map. Depending on which version of Environmental Screen you buy, with or without professional interpretation, your cost will be $59 or $99. There are significant limitations to this pared down environmental report which are important to take into account. Read Everything you could ever want to know about Environmental Screens by clicking here.
Records Search with Risk Assessment (RSRA)
The Record Search with Risk Assessment (RSRA) was developed by the Small Business Administration (SBA) with the intent of driving down the transaction costs of taking out commercial loans. RSRA have limitations which you need to know about. Everything you could ever want to know about RSRA can be found by clicking here. They cost substantially less ($450) than a Phase 1 ESA and take less time to get answers (5 Days). But with the pared down scope of this Phase 1 Lite, comes limitations which are important. The RSRA doesn’t limit your liability for environmental contaminants that were the responsibility of the previous owners. The Phase 1 ESA does. A RSRA isn’t accepted as valid Environmental Due Diligence by every bank, just typically the banks that do SBA lending (although that is changing so ask your lending professional).
If you still don’t know which route you should go, maybe a phone call would help? Call us at (888) 405-1742.