Are You Exposing Yourself to Unnecessary Liability?
educe Your Liability by Fulfilling the “All Appropriate Inquiry” Requirement. Amendments to the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) prompted the U.S. Environmental Protection Agency (EPA) to establish standards and practices necessary to conduct “all appropriate inquiry”. “All appropriate inquiry” is a prerequisite to establishing an innocent landowner defense and new bona fide prospective purchaser defense under CERCLA. Establishing the noted defense criteria before purchasing new real estate is important to reduce liability associated with historical environmental contamination at the property.
An Environmental Site Assessment (Phase I, II, III) is the standard of conduct developed by the EPA to establish “all appropriate inquiry”. Many lending institutions require such assessments before loans on commercial or industrial properties are granted. It is also prudent for high-risk non-commercial properties to have such assessments performed before ownership is transferred.
ALC can provide (ASTM) E 1527-05 Standard Practice Environmental Site Assessments on any type of real estate. We have helped every sector of the market, from public utilities to institutional lenders, reduce their liability by properly following federal mandates.