Real Estate Environmental Due Diligence in New Jersey: Commercial Industrial and Residential Buyers & Sellers Assess Now!
Environmental due diligence in real estate acquisitions often only requires a Phase I Environmental Site Assessment. However, a Phase I addresses all appropriate inquiries of environmental conditions pursuant to federal standards, the State of New Jersey differs and a Phase I alone will not protect a buyer as an innocent landowner under New Jersey statutes and regulations. A Preliminary Assessment Report produced as per the New Jersey Spill Compensation and Control Act (“Spill Act”) is required and often times a first step in qualifying for innocent landowner protection under state law. Generally, the Spill Act is strict liability where you are liable simply by owning any contaminated property. To avoid liability you must conduct all appropriate inquiries into the conditions of the property in New Jersey by having a Preliminary Assessment done prior to purchase, and specifically to evaluate potential “Areas of Concern.” The determination as to a Phase I and Phase II investigation can be assessed and said appropriate inquiries under New Jersey law will provide buyers and owners the defense of not knowing or having any reason to know as to any contamination. When acquiring property in New Jersey you need to consult with your team of trusted advisors to include an environmental professional to produce a combined Phase I/PA report as so determined, which can provide both federal and state innocent landowner protection.
Call DiMedio Law 856.428.5577 or email [email protected] to address your real estate matters. This blog article is for informational purposes only and not offered as legal advice or a legal opinion.