Due Dilligence Phase I and Phase II FAQ

ANY QUESTIONS

Frequently Asked Questions - Phase I and Phase II

A Phase I ESA is a standard part of environmental due diligence, especially during property transactions. It includes:
• A review of historical records and maps
• A site inspection
• Interviews with property stakeholders
• Identification of Recognized Environmental Conditions (RECs)
It does not include sampling or lab testing.

If RECs are identified during a Phase I, a Phase II ESA is recommended. This involves subsurface investigation (e.g., soil borings, groundwater sampling) to determine the presence and extent of contamination.

Costs vary depending on the number of samples, lab analysis needs, and site complexity. Basic Phase II investigations generally range from $4,500 to $8,000.
Not always, but it is strongly recommended by banks, attorneys, and real estate professionals during commercial transactions.

Typically 1–3 weeks, depending on property size and document availability.

Yes, Phase I ESAs are valid for 180 days and should be updated if used beyond that window.

• No contamination detected → no further action
• Contamination found → remediation required

Technically yes, but skipping a Phase I may result in missed historical context and potential legal risks.