What is Environmental Due Diligence?

Environmental Due diligence is the process of investigation performed by a real estate investor prior to engaging in a contract. Environmental due diligence researches the current and former property uses to determine the likelihood of environmental impact from former on-site operations, and support the “Innocent Landowner’s Defense” under the Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA. By performing environmental due diligence on a property prior to purchase, a prospective owner can document baseline conditions of a property, and assess the potential liability or risk associated therein.