10/20/2026
A Phase I Environmental Site Assessment is often required by banks when financing a commercial property. But what if you are paying cash? There is no legal requirement to get one. That does not mean you should skip it.
Here is a real example from Kathryn Loddengaard, Department Manager of Environmental Services. A woman purchased a former dry-cleaning facility with cash. No bank loan meant no Phase I was required. She bought the property as-is and became the owner.
Later, she tried to lease the space to a new tenant. That tenant asked for a Phase I ESA before signing a lease to confirm the property had no environmental concerns. That is when she called us.
Former dry-cleaning operations often leave behind environmental conditions. We identified significant issues at the site. But because she purchased without a Phase I, those conditions became her responsibility the moment she took ownership. The tenant did not lease the space, and the property remained vacant.
A Phase I ESA ties into the EPA's innocent landowner liability defense. It protects you from liability for pre-existing environmental conditions if you performed all appropriate inquiries before purchase.
If you are buying a commercial property, even with cash, a Phase I ESA is one of the best ways to protect your investment and avoid surprises down the line.
🤔 Unsure if you need a Phase I, contact the experts at Enviroscience Consultants today!
https://youtu.be/bw3cjJ0oWQs?si=6xqqvi5YmXdnHlVQ
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