Tightening environmental legislation across the globe – but especially in developed countries, has made purchasing a commercial property without seeking advice on the possible pitfalls of not adhering to environmental legislation one of the most damaging paths that any buyer could contemplate. this is especially important where the buyer is contemplating further development of the property.
The environmental analysis process is a formal one which examines the risks that might be associated which such subjects as groundwater contamination or the effects that development might have on the soil or even on species which are endangered or which might become endangered due to the actions of the buyer during the development process.
A relationship with a professional company that specializes in environmental impact analysis is absolutely necessary due to the complexity of much of the legislation that surrounds the subject. Not only (especially in the United States) does this legislation vary across regional boundaries but even those differences may be subject to centralized oversight by national organizations such as the NPA (the Environmental Protection Agency) in the U.S.
It is not only the development of commercial properties that is governed by the legislation – it also the use of potential hazardous substances. These substances are in common use during any development process and the use, as well as the disposal of these substances is strictly controlled.
To complicate matters even more it is not necessary that the owner of the property even be aware of the use of such substances on the property purchased or being developed. The ownership of the property may be enough to litigate against the property owner, which is why it is so important to take environmental due diligence advice.
Given the increasingly strict legislation around environmental issues and the potentially devastating effects of fines or even the seizure of property it is absolutely essential that any person or organization contemplating the purchase of property, especially where there is the intention to further develop that property enlist the help of a professional company that will be able to provide all the services required to perform an in depth environmental due diligence.
It is especially important that the process conform to all relevant local and national legislation. Failure to do so may result in liabilities that far exceed the value of the property. In a worst case scenario these liabilities can cause both reputational harm and financial harm that can cause the failure of the company that has invested in the property.