When the environmental risks associated with the purchase of a building need to be disclosed to potential buyers, a section 1 environmental survey is a visual inspection process designed specifically for that purpose.
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Financial institutions such as the banking sector require these study reports to provide commercial real estate mortgages. They want to know whether these assets have been negatively affected by environmental problems in the past and whether they are exempt from negative liabilities as they are now.
The need for such a study arises only in the case of trading priorities. The American Society for Testing and Materials has set certain standards for Phase 1 surveys and recommends the following steps: visually review the site and adjacent areas, and search federal, state, and local databases.
Problems with the Phase 1 Environmental Study – The Phase 1 Study highlights the following issues.
o Materials containing asbestos.
o Tin-based colors.
or radon gas.
o Disposal facilities.
o Items containing PCBs.
Problems can reduce property values. Even if you are planning to buy a property without taking out a loan or mortgage, it is very important to complete a Phase 1 survey as potential buyers may encounter environmental issues that will later sell you the same property wanting to be responsible for irregularities caused by previous tenants or buyers.