An Effective Environmental Due Diligence Report for Low-Risk Commercial Properties
Does your commercial real estate property require additional environmental assessment?
Determining where to go next can be a frustrating experience and could increase wait times and your client’s out-of-pocket expenses. A Transaction Screen Assessment (TSA) could be the answer. A TSA is a lower-cost, faster alternative to a Phase I Environmental Site Assessment (ESA). Ordering a TSA provides a thorough environmental site assessment while insuring your CRE transaction proceeds smoothly.
What is the difference between a TSA report and Phase I ESA?
A TSA is a limited-scope environmental analysis intended to identify Potential Environmental Concerns in general accordance with ASTM Standard Guidance E1528-14. Transaction Screen Assessments are commonly performed for commercial real estate and recommended for commercial properties where few risks from surrounding properties are anticipated.
A TSA can satisfy conventional loan requirements because it follows ASTM E1528-14. Unlike a Phase I ESA, a TSA does not require analysis of the historical land use of adjacent properties. For certain properties, these limitations on the scope of a Phase I ESA strike the perfect balance between the need for rigorous environmental due diligence and the need to keep transaction costs and times down.
Please note the TSA does not meet the all-appropriate inquiry requirement of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and is therefore not eligible for the liability limitations the Act provides for.
Transaction Screen Assessment Cost-Effective Solutions