What You Need to Know About Environment Site Assessments
2 min read
Thorough research is essential before making any significant investment decision in a commercial real estate transaction.
Before proceeding, it’s important to thoroughly screen the property to ensure its integrity. A common aspect of the screening process is conducting an environmental site assessment (ESA), which identifies potential or existing environmental contamination liabilities.
An environmental site assessment is conducted in two phases. In phase one, an environmental consultant visually assesses the property for any visual evidence of actual or potential contamination. The consultant will also take documentation and photos to determine past activities on the site and neighbouring properties. If potential environmental issues are identified, further action is required.
In phase two, the assessment includes soil sampling or other tests to better understand the condition of the land, groundwater and structures on the property. Some provinces require the results from the phase two assessment or record of site condition (RSC) to be filed with the province so they can be made publicly available.
The knowledge the environmental site assessment provides is critical to business owners. It provides them with the environmental conditions and associated risks tied to a property, enabling businesses to make informed decisions when investing in commercial real estate.
References
Environmental site assessments – what you need to know. BDC.ca. (2024, August 6). https://www.bdc.ca/en/articles-tools/money-finance/buy-lease-commercial-real-estate/what-you-need-know-about-environmental-site-assessments
Guide for completing phase one environmental site assessments under Ontario Regulation 153/04. ontario.ca. (n.d.-b). https://www.ontario.ca/page/guide-completing-phase-one-environmental-site-assessments-under-ontario-regulation-15304#:~:text=An%20environmental%20site%20assessment%20(%20ESA,and%20concentration%20of%20these%20contaminants.
Royal LePage Commercial Westhaven Toronto Brokerage. (2022, August 2). What is an environmental site assessment?. Royal LePage Commercial Westhaven Toronto Brokerage. https://www.rlpcommercialtoronto.com/commercial-real-estate-news/what-is-an-environmental-site-assessment
Royal LePage Commercial Westhaven Toronto Brokerage. (2023a, July 18). What is an environmental site assessment?. Royal LePage Commercial Westhaven Toronto Brokerage. https://www.rlpcommercialtoronto.com/commercial-real-estate-news/what-is-environmental-site-assessment
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