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Danville, California – August 19, 2024 – Diablo Green Consulting, Inc., a leading provider of environmental services for commercial and telecommunications projects, today announced a strategic partnership with Tullup, a global talent sourcing agency. This collaboration aims to bolster Diablo Green’s team with highly skilled professionals, further strengthening its ability to deliver exceptional environmental consulting services.

“We’re excited to partner with Tullup,” said Holly, owner of Diablo Green. “Their expertise in sourcing top talent aligns perfectly with our commitment to providing clients with the best possible service. As we continue to expand our project portfolio, having access to a wider pool of skilled professionals through Tullup will be invaluable.”

Tullup, known for its rigorous vetting and placement process, specializes in connecting businesses with exceptional candidates from around the world. This partnership will allow Diablo Green to tap into Tullup’s extensive network to fill a range of roles, including NEPA specialists, biologists, cultural resource managers, and more.

Gary, owner of Tullup, shared their enthusiasm about the partnership: “We’re delighted to be working with Diablo Green, a company dedicated to environmental stewardship and project success. We’re confident that our global talent solutions will help them build an even stronger team, enabling them to continue delivering outstanding results for their clients.”

This partnership underscores Diablo Green’s proactive approach to talent acquisition and its dedication to maintaining a highly qualified team. By leveraging Tullup’s expertise, Diablo Green is poised to navigate the complexities of the environmental consulting landscape with even greater efficiency and effectiveness.

About Diablo Green Consulting, Inc.

Diablo Green Consulting, Inc. is a trusted provider of environmental services, specializing in NEPA compliance, permitting, biological surveys, cultural resource management, and more. With a commitment to regulatory expertise and community-focused solutions, Diablo Green guides commercial and telecommunications projects to success while safeguarding the environment.

About Tullup

Tullup is a global talent sourcing agency dedicated to helping businesses grow by connecting them with top talent from around the world. Tullup’s rigorous vetting process and focus on cultural fit ensure that clients receive candidates who are not only skilled but also aligned with their company’s values and goals.

The Transaction Screen Assessment (TSA) report is the culmination of the ASTM TSA process. It meticulously documents findings from the questionnaire, records review, and potential site visit. This report serves as a crucial tool to inform and guide decision-making in real estate transactions.

A well-structured TSA report offers more than just a collection of data. It provides a systematic analysis of potential environmental risks associated with a property. Within the report, certain key sections play a pivotal role in shaping this assessment.

Essential Components of a TSA Report

Property Information

• Basic details: Address, current use, lot size, building description.
• Historical Uses: Past uses are crucial, as they can reveal potential sources of contamination (e.g., gas station, manufacturing facility, etc.).

Records Review Findings

• Database Results: Summarizes if the property or adjacent sites appeared on any federal, state, or local environmental databases indicating potential contamination, spills, violations, or permits.
• Historical Records: Findings from maps, aerial photos, city directories, etc., are outlined. These can uncover past land uses or structures that might suggest potential environmental risks.

Site Visit Observations (if conducted)

• Visual Indicators: Description of any unusual staining, stressed vegetation, improper waste disposal, or other potential red flags observed.
• Limitations: Note any areas that were inaccessible during the visit.

Data Gaps

• Missing Information: Highlight records that couldn’t be obtained or areas not accessible during the site visit.
• Impact on Assessment: Explain how these gaps might limit identifying potential risks.

Conclusions & Recommendations:

• Potential Risks: Based on all gathered data, areas of potential environmental concern (RECs) are clearly outlined.
• Further Assessment: The report may recommend a Phase I ESA if any significant concerns or data gaps exist, especially to gain stronger liability protection.

Why These Elements Matter

Informed Decision-Making

The TSA report isn’t just a collection of information; it’s a tool that connects the findings to potential environmental liabilities. Each section contributes a piece of the puzzle for buyers, sellers, and lenders to make well-informed decisions about the property.

Risk Management

By systematically documenting potential risks, the TSA report:

• Quantifies Risk: Helps assess the likelihood and potential severity of environmental contamination.
• Facilitates Strategy: Can suggest risk mitigation options, like further assessment, remediation, or negotiating adjustments to the sales price.
• Provides Documentation: Offers a clear record of due diligence, demonstrating that environmental concerns were proactively considered during the transaction.

Connecting Report Sections to Due Diligence:

• Records Review and Historical Research: Flag past activities that often leave behind contamination.
• Site Visit: Identifies current issues visible on the surface.
• Data Gaps: Highlight the importance of a thorough assessment, as missing information limits the ability to fully understand risks.
• Recommendations: Guide the next steps, helping determine whether to proceed with confidence, require a deeper investigation, or re-evaluate the transaction.

Real-World Example Snippets

Scenario 1: “Red Flag” in Records

Report Excerpt (Records Review): “The property was listed on the state’s Leaking Underground Storage Tank (LUST) database, indicating a past release of petroleum products. However, the listing shows the case as ‘closed,’ with no further details available.”

Implications: This raises a concern about potential soil or groundwater contamination. While the case is closed, further inquiry might be needed to determine the extent of any past issue and whether any lingering liabilities exist.

Scenario 2: Recommendation for Phase I

Report Excerpt (Conclusions): “Historical aerial photographs indicate that a portion of the property was used as an auto salvage yard from the 1950s through the 1980s. Due to the potential for soil and groundwater contamination associated with this type of activity, a Phase I ESA is recommended for a more comprehensive assessment.”

Why it Matters: The TSA identified a high-risk historical use. A Phase I ESA with potential sampling is now essential for buyers to fully understand the level of risk and make informed decisions about remediation or negotiation.

Beyond Just a Document

A Transaction Screen Assessment report delivers far more than simply compiled information. It serves as a powerful decision-making tool within the environmental due diligence process. By carefully analyzing the findings outlined in each section, buyers, sellers, and lenders can gain a clearer understanding of potential environmental risks and liabilities associated with a property.

The TSA report empowers responsible real estate transactions. It guides informed choices on whether a property requires further in-depth investigation, offers leverage for negotiation, or helps determine if the identified risks align with the buyer’s risk tolerance. Ultimately, understanding the content of a TSA report is essential for minimizing environmental surprises and making sound investment decisions.

Frequently Asked Questions About a Transaction Screen Assessment Report

A TSA report section is missing some information. Is it still valuable?

Yes, but it’s important to understand the limitations. Data gaps can occur due to missing records or inaccessible site areas. The report should clearly explain these gaps. Discuss them with your environmental professional to assess if they significantly impact the overall risk assessment or whether further investigation can fill the gaps.

The TSA report recommends a Phase I ESA. Does this mean the deal is dead?

Not necessarily. A Phase I ESA provides a more in-depth analysis, crucial for high-risk properties or when maximum liability protection is sought. Depending on the Phase I findings, you might:

• Proceed confidently if the concerns are minor.
• Renegotiate price or request remediation before closing.
• Walk away if the risks are too high.

Can I negotiate based on a TSA report, even if it doesn’t have the same legal protection as a Phase I?

Potentially. While a TSA might not offer full CERCLA liability protection, it can highlight potential environmental concerns. Use this knowledge to negotiate a lower sale price, require the seller to address issues before closing, or include specific contingencies in the contract to protect yourself.

How does the TSA report help my lender?

Lenders often require a TSA as part of their due diligence. The report helps them assess the potential for environmental liabilities that could impact the property’s value as collateral. A favorable report with minimal red flags can facilitate a smoother loan approval process.

If the TSA report looks good, why would I need a Phase I ESA?

In some cases, primarily for low-risk properties and with clear findings, a TSA might be sufficient due diligence. However, Phase I ESAs offer greater depth, stronger legal protection, and may uncover issues the TSA missed. It’s good practice to consult with your real estate attorney and environmental professional to determine the most appropriate level of assessment tailored to your needs.

An ASTM Transaction Screen is a streamlined environmental assessment conducted in accordance with the ASTM E1528 standard. It primarily relies on a questionnaire, records review, and a potential limited site visit to identify potential environmental concerns associated with a property.

ASTM TSAs offer a preliminary level of environmental due diligence within commercial real estate transactions. They are often used for low-risk properties or to meet initial lender due diligence requirements.

The ASTM TSA Process: Key Components

Questionnaire

The environmental professional provides the property owner or occupant with a detailed questionnaire. This gathers information about current and historical site uses, storage or handling of chemicals, waste disposal practices, spills or leaks, and other activities that might suggest environmental risks.

Records Review

The environmental professional examines federal, state, and local environmental databases, as well as historical records (aerial photos, city directories, etc.), to find evidence of potential contamination sources on or near the property.

Limited Site Visit (Optional)

A site visit may be conducted to identify visual indicators of environmental concerns. This could include observations of improper storage/disposal, unusual odors, or site conditions that raise questions.

TSA Report

The report summarizes findings from the questionnaire, records review, and site visit (if conducted). It outlines areas of potential environmental concern (RECs) and may recommend a Phase I ESA for further investigation if warranted.

Benefits of an ASTM Transaction Screen

• Cost-Efficiency: ASTM TSAs are significantly less expensive than a full Phase I ESA due to their streamlined nature and focus on existing records. This makes them especially attractive for buyers and lenders involved in smaller transactions or those working with budget constraints.
  
• Speed: The reliance on a questionnaire and readily available records allows TSAs to be completed relatively quickly, often within a week or two. This facilitates faster decision-making in time-sensitive real estate transactions.
  
• Preliminary Risk Identification: While not as comprehensive as a Phase I ESA, a well-conducted ASTM TSA can still uncover obvious red flags. It provides a baseline understanding of potential environmental liabilities, helping buyers, sellers, and lenders assess risks early in the process.
  

The ASTM standard provides a degree of consistency and reliability, ensuring that even with the smaller scope of a TSA, buyers are still getting an assessment based on industry-recognized practices.

When to Consider an ASTM TSA

Scenario 1: Simple, Low-Risk Properties

Property Examples: Vacant lots in residential areas, small commercial buildings with straightforward histories (e.g., retail, office space), properties with no indication of past industrial use.

Why a TSA is Suitable: In these scenarios, the likelihood of significant contamination is often low. An ASTM TSA can provide a cost-effective way to satisfy a lender’s initial due diligence requirements and offer peace of mind before undertaking a full Phase I ESA.

Scenario 2: Stepping Stone to Phase I

Example: A property with a past use as a gas station (but now redeveloped). The ASTM TSA might uncover this past land use, but not provide sufficient detail to determine if contamination is present.

TSA’s Role: It flags the potential risk and clearly indicates that a full Phase I ESA, potentially including soil and groundwater testing, is necessary to make informed decisions about the property.

ASTM TSA vs. Phase I ESA

Characteristic	ASTM Transaction Screen (TSA)	Phase I ESA
Scope	Limited: Questionnaire, records review, optional limited site visit	Comprehensive: Includes interviews, historical research, in-depth site visit
Liability Protection	May not fulfill CERCLA “Innocent Landowner Defense” requirements	When conducted according to ASTM standards, generally meets CERCLA requirements
Typical Cost	Significantly less expensive	Higher cost
Turnaround Time	Faster (often within a week or two)	Longer (several weeks)

Situational Value of the ASTM Transaction Screen

The ASTM Transaction Screen (TSA) serves as a targeted tool within the broader framework of environmental due diligence. Its cost-effectiveness and speed make it a practical choice for initial assessments of seemingly low-risk properties or when time is a major constraint. The TSA, adhering to the ASTM standard, provides a structured approach to identifying potential environmental concerns.

It’s crucial to recognize the TSA’s role as a preliminary screening. In cases with complex property histories, known risks, or when maximum liability protection is desired, the more comprehensive Phase I ESA is essential. Understanding the distinct purposes of both the TSA and Phase I ESA is key to choosing the most appropriate assessment for the specific property and transaction.

Ultimately, a strategic approach to environmental due diligence, where the ASTM TSA is employed alongside other assessments as needed, helps buyers, sellers, and lenders manage environmental risks proactively, facilitating informed and responsible real estate decisions.

Frequently Asked Questions About ASTM Transaction Screen

What if the TSA finds potential problems? Am I still protected?

A TSA’s main function is to uncover red flags. If potential environmental concerns (RECs) are identified, it might NOT provide the same legal protection as a Phase I ESA. To understand your options, consult with your environmental professional and real estate attorney. They can help determine if a more detailed Phase I ESA is necessary for liability protection or to guide negotiations.

My lender is asking for an ASTM TSA. What does that mean for me?

Lenders often require an ASTM TSA as part of their due diligence on smaller or seemingly low-risk transactions. It helps them assess potential environmental liabilities before approving the loan. Cooperate with the process, as a smooth TSA can facilitate a faster decision on your loan application.

Can I use a TSA instead of a Phase I ESA to save money?

Sometimes, but not always. TSAs are less expensive, but they don’t offer the same depth or potential liability protection as a Phase I ESA. On high-risk properties or where maximum protection is sought, a Phase I ESA is the safer choice. Choosing the right assessment is crucial to avoid costly surprises later.

The property owner won’t agree to a Phase I ESA due to the cost. Can a TSA still be useful?

Yes. Even with limitations, a TSA is better than no assessment at all. It offers a preliminary look, and if any concerns are found, you can use those findings to negotiate for a lower price or insist upon remediation before proceeding.

Is there a specific time limit for how long a TSA is considered valid?

While there’s no set expiration like a Phase I ESA, TSAs rely on records that could change. Additionally, property conditions might change. Consult with your environmental professional and lender to determine if an update is needed, especially for transactions with longer timelines.

Environmental Transaction Screens (ETSs) are preliminary tools used to assess potential environmental risks associated with a commercial property. This streamlined assessment offers a cost-effective and time-efficient alternative to a full Phase I Environmental Site Assessment (ESA) for initial due diligence.

Purpose of ETS:

• Primarily for Low-Risk Properties: An ETS is ideal for properties deemed low-risk based on their size, location, and historical use. It’s suitable when speed and affordability are priorities, and in situations where comprehensive liability protection might not be the primary concern.
• Screening Tool: An ETS functions as a first-pass screening, flagging potential “red flags” that might warrant further investigation with a more in-depth Phase I ESA.

Key Takeaway: Think of an ETS as a way to get a quick environmental “pulse check” on a property. It helps buyers, sellers, and lenders make informed decisions early in the real estate transaction process.

What Do Environmental Transaction Screens Involve?

Database and Records Review:

Environmental Databases: The environmental professional analyzes data from federal (e.g., EPA Superfund Sites/NPL, RCRA facilities), state, and local databases to identify any recorded environmental issues on or near the property.

Focus of the Search: This includes searching for:

• Known contamination sites
• Permitted facilities
• Evidence of spills or releases
• Underground storage tanks
• Any other activities that might indicate potential contamination.

Site Visit (Optional):

A limited site visit aims to identify any visual signs of environmental concern that might not be apparent in records. This could include:

• Stressed vegetation
• Unusual staining
• Evidence of improper waste disposal
• Other potential red flags

Not Always Required: While beneficial, site visits might not be included in every ETS, especially for properties considered very low-risk.

Historical Research:

Researchers analyze historical records like:

• Aerial photographs
• City directories
• Sanborn Fire Insurance maps
• Other available resources

Goal: To understand how the property and surrounding areas were used in the past.

Identifying High-Risk Activities: The focus is on pinpointing past land uses (e.g., gas stations, industrial facilities, dry cleaners) that could have left behind contamination.

Report:

Summary of Findings: The ETS report documents the information gathered from databases, the site visit (if conducted), and historical research.

Red Flags and Recommendations: It highlights areas of potential environmental concern and may recommend further action, such as a limited or full Phase I ESA, if warranted.

Benefits of Environmental Transaction Screens

Affordability:

Significant Cost Savings: One of the primary advantages of an ETS is its affordability compared to a full Phase I ESA. This is due to its streamlined scope and reliance on readily available records.

Appealing for Smaller Deals: The lower cost makes Environmental Transaction Screens particularly attractive for buyers and lenders involved in smaller transactions where the expense of a full Phase I ESA might seem disproportionate.

Speed:

Quick Turnaround: The focus on records and the optional site visit allow ETSs to be completed much faster than a Phase I ESA. Turnaround can often be within a few days to a week.

Facilitates Timely Decisions: In fast-paced real estate scenarios, this speed is crucial. It enables buyers to quickly assess potential risks and make informed decisions within tight timelines.

Risk Identification:

Not as Comprehensive, but Still Valuable: While an ETS doesn’t offer the same depth as a Phase I ESA, it can still uncover major areas of environmental concern.

Proactive Due Diligence: An ETS demonstrates a commitment to due diligence, even on seemingly low-risk properties. It can prevent unpleasant surprises later in the transaction process.

When is an ETS NOT the Right Choice?

High-Risk Properties:

• Past Industrial Use: Properties with a history of industrial activity, manufacturing, chemical handling, or other potentially contaminating uses require the greater scrutiny of a Phase I ESA.
• Known Concerns: If there are existing suspicions of contamination (even anecdotal), an ETS won’t provide sufficient investigation. A Phase I ESA with potential sampling and testing is necessary.
• Complex Properties: Large properties or those with mixed-use zoning may harbor hidden risks that records-based Environmental Transaction Screens could miss.

Limited Liability Protection:

• The CERCLA Factor: To claim the “Innocent Landowner Defense” under CERCLA, a Phase I ESA adhering to specific standards is often required. An ETS generally won’t suffice for this level of legal protection.
• Maximizing Protection: Buyers seeking maximum liability protection should opt for a Phase I ESA, especially for high-risk properties or when comprehensive due diligence is paramount.

Environmental Transaction Screens are not substitutes for Phase I ESAs when the situation demands a more thorough investigation. It’s important to recognize when the potential risks outweigh the benefits of a streamlined assessment.

Real-World Applications of ETS

Scenario 1: Simple, Low-Risk Property

Property: A small, vacant commercial lot in a residential area with no obvious red flags during preliminary research.

Purpose of ETS: An ETS provides a cost-effective way to satisfy a lender’s due diligence requirement for a simple property transaction.

Outcome: If the ETS uncovers no concerns, it offers peace of mind, allowing the deal to proceed confidently.

Scenario 2: Stepping Stone to Phase I

Property: An old gas station converted into a parking lot. The initial ETS reveals the past land use.

ETS Value: While not conclusive, Environmental Transaction Screens raise a significant red flag, warranting a full Phase I ESA with potential soil and groundwater sampling.

Outcome: The ETS prevents the buyer from unknowingly inheriting liability and facilitates informed decision-making about remediation or negotiation.

Key Points:

• Versatility: An ETS can be suitable for different property types and transaction scenarios.
• Proactive Approach: It demonstrates responsible due diligence, even for seemingly low-risk properties.
• Decision-Making Tool: The ETS helps determine whether to proceed with a transaction as is, renegotiate, require further investigation, or walk away.

The Value of Environmental Transaction Screens

An Environmental Transaction Screen (ETS) serves as a valuable tool within the broader spectrum of environmental due diligence assessments. Its cost-effectiveness and speed make it well-suited for initial screenings on seemingly low-risk properties and situations where time is of the essence. By flagging potential red flags, an ETS facilitates informed decision-making, helping buyers, sellers, and lenders navigate potential environmental concerns early on.

It’s crucial to remember that an ETS is not a replacement for a full Phase I ESA in all circumstances. Properties with a history of high-risk uses, known contamination concerns, or where maximum liability protection is sought necessitate the more comprehensive assessment a Phase I ESA provides.

Understanding the strengths and limitations of the ETS is key to its effective use. When employed strategically, alongside other assessments as needed, the ETS contributes to responsible real estate transactions and helps minimize environmental risks.

Frequently Asked Questions About Environmental Transaction Screens

Can Environmental Transaction Screens be used for any type of property?

While an ETS can be applied to various properties, it’s most suitable for those considered low-risk. This typically includes smaller commercial properties, those in primarily residential areas without industrial pasts, and where there are no obvious signs of potential contamination. Large, complex properties or those with known past industrial uses often necessitate a Phase I ESA from the outset.

I had a Phase I ESA done a few years ago. Can I reuse it instead of getting an ETS?

Unfortunately, no. Environmental regulations and standards change, and past assessments become outdated. To ensure reliable due diligence, lenders and buyers usually require a recent ETS or Phase I ESA. Even if the property seems unchanged, an older assessment might not reflect new information, regulatory shifts, or changes in how the property or adjacent sites are being used.

Who can perform Environmental Transaction Screens?

ETSs must be conducted by qualified environmental professionals with expertise in identifying and interpreting potential environmental risks. Look for individuals or companies with experience in environmental assessments, who understand databases, historical research, and the red flags that might warrant further investigation.

My ETS revealed some potential concerns. What should I do?

The value of an ETS lies in its ability to guide the next steps. If red flags are raised, don’t panic. Consult your environmental professional and real estate attorney. They can help determine if a more focused Phase I ESA, addressing the specific areas of concern, is needed. This facilitates informed decisions on whether to proceed, renegotiate, or seek remediation solutions.

Are there specific standards for an ETS like there are for Phase 1 ESAs?

While not as strictly standardized as Phase I ESAs, reputable ETSs usually follow industry guidelines and best practices. When choosing an environmental professional, inquire about their methodology and the components included in their ETS reports to ensure it will provide the level of due diligence you need.

A Transaction Screen Assessment (TSA) is a streamlined tool designed to provide an initial evaluation of potential environmental risks associated with a commercial property. It differs from a full Phase I Environmental Site Assessment (ESA) in its narrower focus, relying primarily on record reviews, historical research, and a potential limited site visit.

TSAs offer several benefits:

• Cost-Effectiveness: TSAs cost less than the more comprehensive Phase I ESA.
• Speed: The process is faster, providing results quickly.
• Preliminary Screening: TSAs can identify potential environmental red flags early in a real estate transaction.

The Transaction Screen Assessment Process: Step-by-Step

Transaction Screen Questionnaire

This detailed questionnaire is usually completed by the current property owner or a knowledgeable site representative. It gathers essential information about:

• Past and present property uses
• Storage or handling of chemicals or hazardous materials
• Waste disposal practices on the property
• Any known spills, leaks, or environmental incidents

Database & Records Review

The environmental professional thoroughly examines:

• Federal, state, and local environmental databases for records of contamination, violations, or permits associated with the property or adjacent sites.
• Historical resources like old aerial photos, city directories, Fire Insurance maps, and other documents to gain insights into the property’s past.

Site Reconnaissance

A limited site visit may be conducted to identify:

• Visual indicators of potential contamination (unusual staining, stressed vegetation, etc.)
• Improper storage or disposal practices
• Other conditions that might raise environmental concerns

Interviews (Optional)

In some cases, the environmental professional may interview past owners, long-term occupants, or neighbors for additional insights into the property’s history and potential environmental issues.

Report Preparation

The Transaction Screen Assessment report meticulously outlines:

• Findings from the questionnaire, records review, and site visit
• Areas of potential environmental concern (RECs)
• Recommendations for further assessment (e.g., Phase I ESA) if warranted.

What a TSA Will (and Won’t) Tell You

Potential Red Flags

A well-conducted TSA can reveal important environmental risk indicators, such as:

• Example 1: Historical maps show the property was formerly used as a gas station, raising the concern of potential soil and groundwater contamination.
• Example 2: Environmental database listings indicate the property or adjacent sites have past violations or open cases, suggesting potential issues that require further investigation.

Limitations

It’s crucial to remember that a Transaction Screen Assessment does NOT offer the same depth as a Phase I ESA. Typically, TSAs do not include:

• Extensive interviews with past owners or regulatory agencies
• Detailed soil or groundwater sampling and testing
• In-depth evaluation of building structures for asbestos, lead-based paint, etc.

Understanding what a TSA can and cannot deliver is crucial for managing expectations and making informed choices about further environmental assessments.

Receiving Your Report

Turnaround Time

TSAs generally have a faster turnaround than Phase I ESAs. Depending on the complexity, you can often expect your report within a week or two of initiating the process.

Interpreting the Findings

The Transaction Screen Assessment report will clearly outline potential environmental concerns. Pay close attention to:

• Risk Categorization: Reports might label findings with varying risk levels (low, moderate, high).
• Recommendations: Be mindful of any suggestions for further action, especially if a Phase I ESA is recommended due to identified concerns.

Navigating Results:

• Don’t Panic: Red flags don’t automatically mean a deal is dead.
• Consult the Experts: Discuss the findings with both your environmental professional and your real estate attorney. They’ll guide you on the severity of identified risks, and whether the TSA provides enough information or if further action is needed.

When to Consider Upgrading to a Phase I ESA

Scenario: TSA Reveals High-Risk Concerns:

• Property History: The TSA uncovers the property’s past use as a manufacturing facility with potential for heavy metal or chemical contamination.
• Why Phase I is Needed: The TSA might flag this risk, but a Phase I ESA with soil/groundwater sampling would be necessary to determine the extent (if any) of contamination and inform decisions about remediation or liability concerns.

Key Points:

• Tiered Approach: In this situation, the TSA serves as an initial screening, saving time and money if no issues were found, but importantly, highlights the need for a deeper dive.
• Liability Protection: While a TSA might provide some due diligence, a Phase I ESA adhering to ASTM standards is often necessary to secure stronger legal safeguards, like the CERCLA “Innocent Landowner Defense.”

The Value of a TSA: Informed Decisions for Environmental Risk Management

Transaction Screen Assessments (TSAs) offer a valuable starting point for understanding the potential environmental risks associated with a property. By focusing on readily available information and a targeted site reconnaissance, TSAs provide buyers, sellers, and lenders with an initial assessment in a cost-effective and time-efficient way.

Understanding a TSA’s strengths and limitations is key to its effective use. For low-risk properties or fast-paced transactions, a Transaction Screen Assessment might provide enough information for informed decision-making. When red flags are revealed, or maximum liability protection is desired, it often serves as the first step in a tiered process, leading to the more comprehensive Phase I ESA.

Ultimately, a Transaction Screen Assessment empowers responsible real estate transactions. It helps navigate environmental risks, facilitating proactive strategies that safeguard buyers, sellers, and lenders during the property acquisition process.

Frequently Asked Questions About What to Expect in Transaction Screen Assessments

The property owner won’t complete the TSA questionnaire. Can we proceed without it?

While not ideal, an uncooperative owner limits the TSA’s effectiveness. Emphasize to the seller that a thorough Transaction Screen Assessment benefits them as well. Discuss with your environmental professional if alternative information sources can partially fill the gaps. Be aware that a less complete TSA might necessitate a Phase I ESA regardless of other findings.

The Transaction Screen Assessment found minor issues but suggests I still get a Phase I. Why spend more money?

Even seemingly minor concerns can sometimes uncover greater problems upon deeper investigation. The Phase I, with potential soil testing, helps determine the true extent of the issue. It might offer peace of mind or provide justification for renegotiation or remediation before closing.

Must I disclose the results of a TSA to potential buyers?

While specifics vary by state, ethical practice, and potential legal liability, dictate disclosing any known material defects, including potential environmental concerns. The TSA provides you with this knowledge. Transparency helps avoid costly surprises and potential lawsuits later.

I’m financing the purchase. Doesn’t the lender’s due diligence cover my risks?

Partially. Lenders primarily protect their financial interests. Your TSA helps assess risks beyond just the property’s value as collateral. Think about long-term ownership costs if unremediated contamination is discovered after you’ve purchased the property.

How do I choose a qualified professional to perform the TSA?

Look for environmental firms with experience in real estate transactions, specifically with TSAs or Phase Is. Ask about their process, what’s included in their report, and their qualifications. Check references and choose a firm that communicates clearly with you.