Legal liability in environmental issues can be the result of participation in a real estate transaction. Potentially liable participants must exercise "due diligence" to determine if environmentally significant conditions exist. The due diligence defense for real estate transactions requires that the potentially liable party has sufficiently evaluated environmentally significant conditions on the property which was purchased, foreclosed on, or taken as collateral. There has to be a balance between the cost and extent of required environmental investigations. However, no matter what the extent of investigation, there is always the possibility that environmentally significant conditions exist, and form the basis for future liability. The burden is on the person claiming the defense to prove that he has undertaken "all appropriate inquiry" into previous ownership and use of the property , including:
Appropriate Technology, Inc.'s (ATI) approach to Phase I Site Assessments includes the following tasks, as applicable to the specific site:
The above tasks assure that a solid due diligence defence is provided in the event that well concealed significant environmental conditions exist and pose potential liability.
QUALIFICATIONS
ATI principals have performed inspections on hundreds of sites as a fulfillment of due diligence requirements over the course of the last seven years. Inspections have involved the following types of facilities:
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