In our series highlighting the tools of environmental due diligence in real estate transactions, we've covered the basics of (1) what is "environmental due diligence," (2) what are the important environmental provisions you need in a purchase and sale contract, and...
Environmental Due Diligence
Environmental Due Diligence in Real Estate Transactions Blog Series: Part III – Environmental Site Assessments and Compliance Audits
So now you've selected your property and have a proper purchase and sale agreement in place; what do you do next?A. Protecting Yourself from Potential LiabilityUnder CERCLA (the Comprehensive Environmental Response, Compensation, and Liability Act) there is a broad...
Environmental Due Diligence in Real Estate Transactions Blog Series: Part II – Contract of Sale of Real Property
In our first post in this blog series, we explained exactly what is meant by the term "environmental due diligence" in real estate transactions and discussed some of the "tools" of environmental due diligence. In this post, we'll cover in detail one of those tools:...
Borrower’s Covenants
Post-closing covenants will be required for a borrower in a loan transaction, or a tenant in a lease transaction. 1. Borrower will be required to comply [in all material respects] with Environmental Requirements, to notify lender promptly in writing after knowledge in...
Maintain Reps
In a sale or loan transaction the most important pre-closing covenant is that the borrower or seller will maintain the property in compliance with all environmental laws and will re-affirm accuracy of the representations and warranties as of the closing...
All Required Permits
Although the possession of and compliance with all necessary permits is important information for a buyer expecting to continue a business or a lender depending on the viability of a business, representations regarding permits do not necessarily cover potential...
Term Definition: Environmental Requirements
Environmental Requirements: Traditionally the term used is "Environmental Law," but "Requirements" is more accurate as the definition goes beyond statutes and regulations.a. These definitions typically list all of the major federal and state environmental statutes...
How to Draft Appropriate Contract Provisions
A. Representations: a statement of fact to induce another party to enter into a contract.B. Warranty: a promise that the statement is true; intended to relieve the promise (Buyer) from having to determine if the facts are true. A. Representations: a statement of fact...
Environmental Due Diligence in the Real Estate – Overview
This is the first of a series of blogs designed to provide a detailed "primer" for the commercial real estate professional and investor. My goal is unlock what some still see as the mysterious world of environmental risk in the sale or lease of virtually all...