Environmental Site Assessments - What are they? - Toronto, Ontario

What is an Environmental Site Assessment (ESA)?  Not sure?

For many real estate professionals environmental site assessments, or ESA’s, are just another condition on the deal.

Like many conditions we don’t pay much attention to them unless there is an issue. However environmental issues are often "deal killers".

Can deals with environmental issues be saved? Sometimes “yes”, sometimes “no”, however having some basic knowledge could help you to salvage a deal, or even decide that a deal is not worth your time.

Over the next few posts I will explain the Environmental Site Assessment process, so when you face an environmental issue on a property, you will be prepared to make the right decision.

Let’s begin.

What’s an Environmental Site Assessment or ESA?

An ESA is an assessment of real property done in accordance to recognized standards, and performed by a “Qualified Person” (usually with a scientific or engineering background).

The ESA seeks to answer two questions:

1. What is the "likelihood" of environmental contamination on, in, or under the property?
2. If contamination is likely, what is the “location and concentration” of the contamination?

Why order an ESA?

An ESA is an industry recognized and standardized due diligence tool that is required by most lenders and purchasers of all commercial and some residential properties.  An ESA helps protect the parties in a transaction against Environmental and Legal Liability. In some ways an ESA is analogous to having insurance.  A few thousand dollars spent to ensure a site is clean can save you hundreds of thousands or even millions in remediation costs.

Next Blog: Environmental Site Assessments - Phase 1 - 'The Investigation'