In recent years “due diligence” property inspections have become an essential part of any residential or commercial real estate acquisition. Rarely is a home or investment property purchased without benefit of a professional property inspection to determine its suitability for the buyer’s purpose. Contact Jesse for important information regarding home and investment property inspections. Equally important to a property’s physical integrity are the environmental and regulatory conditions that might impact its desirability. Several important new and existing environmental laws place heavy burdens on present owners and users of contaminated property - whether they caused the problem or not. As a result of such Federal and State legislation
environmental liability has become a very important consideration in any
commercial or investment real estate transaction. In order to minimize
future liability buyers should make all reasonable “due diligence”
investigations regarding the environmental condition of a property prior to purchase. We have summarized a
number of issues and precautionary measures here to give you a feeling
for the scope of “due diligence” research you should be conducting when
purchasing property in Arizona. Phase I Environmental Site Assessment A Phase I Environmental Site Assessment (ESA) is an investigation to determine the probability of environmental contamination in connection with a commercial or investment property. A Phase I Environmental Site Assessment will provide critical environmental information which may protect interested parties from current and future financial responsibility including fines and cleanup costs associated with contamination. A Phase I ESA is the only way for a purchaser to qualify for the “Innocent Landowner” defense to CERCLA (Superfund) liability!
Developers, owners and investors are able to use the results of a “Phase I” survey to judge a property’s desirability and potential with increased confidence. This extra precaution may save thousands of dollars by avoiding an unwise investment or business venture. CERCLA The Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA), commonly known as Superfund, is administered by the U.S. Environmental Protection Agency. Superfund laws and funding allow response to releases of hazardous substances and provide for clean up by the “responsible” parties or the Superfund if no responsible parties are identified. Priorities for cleanup are established by the National Priorities List (NPL). It is important to note that homeowners who have not caused or contributed to Superfund contamination are not liable for clean up costs. Federal and State laws have historically protected innocent homeowners from such liability. Professional Building Inspection
A property inspection generally points out necessary repairs and maintenance regarding the physical structure, mechanical and electrical systems, plumbing and any obvious site irregularities. In addition, an inspector may be asked to look into environmental matters such as toxic or hazardous substances, asbestos, lead based paint, carbon monoxide gas and radon gas. Water Quality Assurance Revolving Fund The Water Quality Assurance Revolving Fund is Arizona’s version of the Federal Superfund and is sometimes referred to as the State Superfund. WQARF Study areas define geographical regions where hazardous substances have caused groundwater contamination. WQARF is used to identify the source and extent of contamination as well as the parties “responsible” for the releases and cleanup. WQARF Study Areas are not precise boundaries of contamination. The Arizona Department of Environmental Quality states that the groundwater in WQARF areas is not consumed for drinking water. Drinking water comes from the Salt River Project and Central Arizona Project Canals and is deemed to be safe for domestic consumption. ADEQ has produced Active Remedial Projects Site Maps that identify locations throughout Arizona and the metropolitan Phoenix area where the groundwater or soil may be contaminated. Contact Jesse for a FREE COPY of these maps. New Environmental Regulations New federal and local regulations are being enacted in 1998 and 1999 that could affect your private property. Historic and Archeological Acts could affect, delay or prohibit rehabilitation or development of historically or culturally sensitive sites, whether on public or private property. The Endangered Species Act and new Clean Water Act provisions could make land development more costly or close down projects altogether. For example, in the Tucson area parcels over 3.3 acres must have an “endangered species” study in order to obtain a building permit. Similar regulations will affect development in the Flagstaff area and in Central Arizona. Any grading of more than 1/3 acre requires a Federal permit. A new 5-acre Federal rule already applies to virtually all properties statewide. It is highly recommended that you check with an environmental engineering and consulting firm before you buy your next investment or development property. Visit My Home Page For More Information About Arizona Investment Properties Thanks
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