EnvironmentalIntermediateDelaware Exam

What is 'environmental due diligence' for a Delaware commercial buyer?

AReviewing the seller's environmental disclosure form only

BConducting Phase I and potentially Phase II Environmental Site Assessments to identify and evaluate environmental risks before acquisitionCorrect

CObtaining a structural inspection of the building's environmental systems

DReviewing the local government's environmental permits for the property

Why Conducting Phase I and potentially Phase II Environmental Site Assessments to identify and evaluate environmental risks before acquisition Is Correct

Answer B: Conducting Phase I and potentially Phase II Environmental Site Assessments to identify and evaluate environmental risks before acquisition

Environmental due diligence for commercial buyers typically involves a Phase I ESA (reviewing records and conducting a site walkthrough) and, if Recognized Environmental Conditions (RECs) are found, a Phase II ESA (sampling and testing to confirm or rule out contamination).

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

People Also Study

Key Terms to Know

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.

Adverse Possession

A doctrine by which a person can gain legal title to another's land by openly, continuously, and adversely occupying it for a statutory period.