January 5th, 2009
Environmental Disclosures for Real Estate

  • I need to know if there are any environmental disclosures required for the sale of commercial and industrial Real Estate on a national level (federal guidelines, not state by state). For example, The U.S. Department of Housing and Urban Development for most private housing (not commercial), has the The Lead-Based Paint Disclosure Rule (Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992) This can be found at: http://www.hud.gov/offices/lead/disclosurerule/index.cfm


  • There doesn't seem to be any direct federal disclosure requirements, apart from the lead-based paint. However, the Brownfields Act does call for adherence to ASTM standards of due diligence, and these, in turn, involve environmental disclosure. Take a look at this article: http://www.findarticles.com/p/articles/mi_qa3681/is_200204/ai_n9075614 Hidden treasures & hidden traps: A new meaning to due diligence especially the text that discusses Section 223 of the Act, which begins: "Section 223 of the Brownfields Act clarifies the standards and practices for conducting "all appropriate inquiry" in order to be protected by an innocent owner defense under federal CERCLA law (and likely under state laws, by extension). In general, the new law recognizes the common 1997 standard for Phase I site investigations, known as the American Society for Testing and Materials ("ASTM") Standard E1527 - 97 (1997). Parties to a due diligence review are likely to be using the more expansive ASTM Standard El 527 - 00 (2000), which contemplates an evaluation by the environmental professional of "business environmental risk" in the context of the commercial real estate transaction and requires greater detail as to potential risks that are not being evaluated within the scope of services..." Is that the sort of information you're looking for? pafalafa-ga


  • Absolutely. Here's the ABA website page with a bookreview. The description of the book's contents are very revealing: Environmental Aspects of Real Estate Transactions From Brownfields to Green Buildings Third Edition http://www.abanet.org/rppt/cmtes/rp/c4/indoor/earet2.html ..."A guide through the issues, problems, and pitfalls at the increasingly busy intersection of real estate and environmental law..."


  • Check out the Table Of Contents linked at the bottom, here: http://abastore.abanet.org/abastore/index.cfm?section=main&fm=Product.AddToCart&pid=5350107


  • I took a look at the article recommended by pafalapa, and it's pretty helpful. Notice, though, that the Brownfields act seemingly imposes no disclosure requirements on the SELLER but does impose "due diligence" requirements on the BUYER. Through disclosure of any environmental problems uncovered by this due diliegence, the buyer protects himself from future liability should the sale go through. At least, that's the way I understand it.


  • I have been doing some looking into this online. So far I have drawn a blank as far as federal disclosure requirements go for commercial and industrial property.Even for transactions involving brownfield/superfund sites, there seem to be none,although there are clearly defined liability standards for successive owners. It seems, however, that there are state laws about such disclosures in both residential and commericial real estate transactions; California has an especially strict one. Maybe you do need to go to books such as those suggested by others. I would be happy to post as an answer what I have found so far, and then if you find it inadequate, I could try to do some further digging. Again, many thanks for the rating and tip for last answer. scribe_ga


  • I guess it just goes state by state and there is no general federal disclosure, thx for all your comments.







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    Filed under: xn--qi1a.com — cfz @ January 5, 2009 edit