I previously blogged on this subject here. In the current state of affairs in the property due diligence industry is one where lenders are going to want to make sure that all their ducks are in a row and every transaction is completely vetted. This means that it is highly likely that every property acquisition is going to require some level of environmental due diligence. Even properties that on the surface do not appear to require much investigation should be (and likely will be required to be) investigated and this is precisely where the, “Phase I Light” or Transaction Screen comes in.
A Transaction Screen can be conducted on a relatively quick turn around with a price tag that is approximately half of the cost of a full All Appropriate Inquiry (AAI) Phase I on the same property. Another benefit of the Transaction Screen is that the data collected as part of the Transaction Screen can be used in a full AAI Phase I if the Transaction Screen finds that a full AAI Phase I is warranted.
A brief way of thinking about the process of environmental due diligence in this case would be: