Richards Layton & Finger

Commercial Real Estate Loans: Environmental Due Diligence for Lenders


This Practice Note provides an introduction to the environmental due diligence process regarding commercial real estate loans. Specifically, this Note discusses the importance and scope of environmental due diligence, the role and qualifications of the environmental consultant, the procedures involved in conducting a Phase I and Phase II environmental site assessment (ESA) and the actions necessary following a Phase I or Phase II investigation. This Note also highlights duties and responsibilities for the lender's counsel and borrower's counsel during the environmental due diligence process.