TRANSACTION & CLOSING

Phase I environmental site assessment

Also called: Phase I ESA · environmental Phase I · ESA

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PLAIN-ENGLISH DEFINITION

A standardized environmental due-diligence assessment commonly used to identify potential environmental conditions and support liability defenses.

What it means in practice.

A Phase I generally involves records review, site reconnaissance and interviews rather than invasive testing. Additional investigation may be recommended if concerns are identified.

Why it matters.

Environmental risk can impair value, financing and closing regardless of exchange timing.

Additional notes.

A Phase I generally involves records review, site reconnaissance and interviews rather than invasive testing. Additional investigation may be recommended if concerns are identified.

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