Looking at environmental liens for phase 1 ESA | AFX

So if youre an environmental engineer and you’re looking at make a phase 1 ESA the subjectiveenvironmental liens comes up very frequently this is Dave at AFX and titlesearch.com as you know in 2005 the environmentalliens ASTM standard was introduced what happened was thecommercial real estate market was about ready to grind to a halt because lenders were not willing to goahead with spates based on potential environmentalliability if a construct or dimension was found to have an environmental issue it could exceedthe value of the building and of course a property owner may walk away but thelender is stuck with it so to create a fair and reasonablecompromise the US government came out with located of procedures that ifbuyer property owner or lender did some acceptable due diligence then futureliability would be limited for environmentalissues this ASTM standard actually fabricated theterm environmental lien along with the acronym AUL which standsfor Activity in Usage Limitation if due diligence is done to look forenvironmental liens and AULs on a owned as part of a phase 1 ESA limitingpotential future drawback for the lender or the buyer is normally completed as long as you substantiate a good faith effort to do this that absolves the purchaser as aninnocent proprietor an innocent buyerunfortunately the due diligence thats involved is somewhat loosely defined there are some specific requirements touse all available resources and make all available inquiries butsome other due diligence is loosely characterized that creates an opportunity for some latitude in how an environmental company is going to do the due diligence so if you look for environmentally liens you want to do that part of the research through a certified entitle investigate todemonstrate that you did take a good faith effort to do the environmental searchproperly you can reach us at our website at titlesearch.com

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