Environmental

When is a Phase I Environmental Site Assessment (ESA) typically required?

AFor all residential home sales
BFor commercial and industrial property transactions where environmental contamination is a concern, and for CERCLA liability protection✓ Correct
COnly for government-owned properties
DOnly when the buyer suspects contamination

Explanation

Phase I ESAs are typically conducted for commercial and industrial property transactions to assess potential environmental liabilities. They are required to qualify for CERCLA's bona fide prospective purchaser (innocent landowner) defense.

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