Definition
Environmental assessments are professional inspections looking for potential problems—contamination, hazardous materials, or environmental liability you might inherit. Phase 1 is detective work (reviewing records). Phase 2 involves actual soil and water testing. This protects you from inheriting someone else's environmental nightmare.
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Phase 1 ESA reviews records for contamination; Phase 2 ESA includes soil/water testing. Required by lenders for many properties. Identifies environmental liability.
Pro Tip
Lenders often require environmental assessments for anything with industrial history. Get one anyway even if not required—environmental liability is expensive and permanent. It's cheap insurance compared to remediation costs.
Example
Phase 1 ESA identifying prior industrial use and recommending Phase 2 testing.