Should I get an ENVIRONMENTAL SITE ASSESSMENT?

[TaoWanderer]

What is the name of your state (only U.S. law)? California

I’m trying to buy a ~0.2 acre industrial vacant land in California and my commercial real estate agent is recommending me to get a PHASE I ENVIRONMENTAL SITE ASSESSMENT as part of my due diligence while it’s in escrow, which will run me about $2,400, which is a big chunk considering the purchase price is only about 80K. I talked to one of the neighbors and they said that at one time it was a salvage yard, but they took out all the cars. Recently dirt was added to the land to fill it in and make it level. The phase I which costs $2,400 is just for them to do background research on the property. To do the phase II and actually take a core sample they indicated it could cost as much as $10,000. I am just planning on using the property for my own personal use and store my cars, trucks, RV’s, etc.

Is it is worth it to pay this high price to do the survey?

If they do find some spilled oil, coolant, etc can I still go ahead and buy the property without fear that someone is going to force me to pay hundreds of thousands of dollars to clean it up?

Since the survey would prove that the contamination was there before I purchased the property, would that protect me from being financially liable for any forced clean up.

In what situation would someone be able to force me to clean it up (or pay to have it cleaned)?

Can I do the survey myself? After all it sounds like all the do is look up free public information or is it more complicated than that?

 

[HomeGuru]

What is the name of your state (only U.S. law)? California

I’m trying to buy a ~0.2 acre industrial vacant land in California and my commercial real estate agent is recommending me to get a PHASE I ENVIRONMENTAL SITE ASSESSMENT as part of my due diligence while it’s in escrow, which will run me about $2,400, which is a big chunk considering the purchase price is only about 80K. I talked to one of the neighbors and they said that at one time it was a salvage yard, but they took out all the cars. Recently dirt was added to the land to fill it in and make it level. The phase I which costs $2,400 is just for them to do background research on the property. To do the phase II and actually take a core sample they indicated it could cost as much as $10,000. I am just planning on using the property for my own personal use and store my cars, trucks, RV’s, etc.

Is it is worth it to pay this high price to do the survey?

If they do find some spilled oil, coolant, etc can I still go ahead and buy the property without fear that someone is going to force me to pay hundreds of thousands of dollars to clean it up?

Since the survey would prove that the contamination was there before I purchased the property, would that protect me from being financially liable for any forced clean up.

In what situation would someone be able to force me to clean it up (or pay to have it cleaned)?

Can I do the survey myself? After all it sounds like all the do is look up free public information or is it more complicated than that?

**A: you don't need a 1 you need a phase 2. If the site is contaminated, the cost to remediate may exceed the purchase price of the land. Be careful.

 

[TaoWanderer]

**A: you don't need a 1 you need a phase 2. If the site is contaminated, the cost to remediate may exceed the purchase price of the land. Be careful.

If it is contaminated and I buy it anyway, would be me or the previous owner who is responsible to pay for the clean up?

 

[You Are Guilty]

If it is contaminated and I buy it anyway, would be me or the previous owner who is responsible to pay for the clean up?

Both, potentially. Just because you didn't do it doesn't mean you can't be held liable for the cleanup. In fact, I have a case now where one of my clients is being sued for cleanup costs merely because they owned the land before there were documented spills on the property.

Better to spend the money now and negotiate the selling price based on the known level of contamination than to be surprised when you get a bill for the state (or Feds) to come in and clean it up.

 

[drewguy]

Both, potentially. Just because you didn't do it doesn't mean you can't be held liable for the cleanup. In fact, I have a case now where one of my clients is being sued for cleanup costs merely because they owned the land before there were documented spills on the property.
.

And, worse, it's often the person/company that has the most money that pays the most. If the seller has no money, then the government may look to you for the costs of cleanup.

 

[12345672]

In case you decide to buy the site and find it really contaminated:
Site Assessment - Superfund - Region 9 - EPA

 

[HomeGuru]

OP, did you check out the link?