Due-Diligence Property Transfer

Phase I ESAs are a critical first step in identifying Recognized Environmental Conditions (RECs) that may arise when conducting Phase I ESAs. These assessments are routinely required by lending institutions, investors, and public agencies, and are essential for establishing the “Innocent Landowner” defense under CERCLA. 

Our assessments are performed in accordance with ASTM Standard E 1527 and the U.S. Environmental Protection Agency (EPA)’s 40 Code of Federal Regulations (CFR) 312.20, All Appropriate Inquiry (AAI) rule, and are conducted under the oversight of EPA AAI Environmental Professionals. The Phase I ESA includes a detailed review of historical and regulatory records, agency databases, site reconnaissance, interviews with site representatives, and evaluation of surrounding properties. The goal is to determine whether potential environmental concerns exist that may require further investigation. 

The result is a comprehensive, objective, and clearly written report that documents our findings, identifies areas of concern, and provides recommendations for next steps. If environmental impacts are suspected, a Phase II ESA may be recommended.

Phase II ESAs are conducted in accordance with ASTM E 1903-11 and designed to characterize the nature and extent of contamination identified or suspected during a Phase I ESA. These investigations involve the collection and analysis of soil, groundwater, or soil vapor samples to evaluate site conditions. 

Field work is conducted under the direction of experienced and licensed Professional Engineers and Geologists. Sampling methods may include trenching, drilling, geophysical surveys, and the installation of groundwater monitoring wells. In some cases, mobile analytical laboratories are used to accelerate data turnaround. A site-specific work plan, sometimes subject to regulatory approval, guides the scope of work. 

Third-Party Reviews assess whether previously completed Phase I ESAs, Phase II ESAs, or other environmental reports for a site have adequately discovered and/or assessed and quantified environmental risks present or suspected at a site. Third-Party Reviews are conducted under the oversight of EPA AAI Environmental Professionals and provide opinions and recommendations for consideration of stakeholders of the pending financial transactions.

In addition to ESAs, SOCOTEC offers a full suite of related services to support property transfer evaluations, including hazardous building materials surveys (asbestos, lead-based paint, mold), transaction screens, compliance audits, and regulatory file reviews.