Phase I environmental assessment
A review of a property's records, history and site conditions to spot possible contamination, such as old gas stations or dry cleaners. Commercial lenders usually require one, and it can lead to a Phase II with soil testing.
Also called: Phase I, Phase I ESA, ESA, environmental site assessment
Related terms
The buyer's work to check a property before committing, such as inspections, surveys, HOA documents and zoning. In some states, like North Carolina, it is a defined period with a fee paid to the seller.
Property used for business or to produce income, such as offices, retail, industrial buildings and larger apartment complexes. It is usually valued on its income and financed with commercial loans.
Property used for manufacturing, storage, distribution and logistics, including warehouses and flex buildings. Clear height, loading docks, power and highway access matter most to tenants.
A mineral once common in insulation, flooring, and siding. It is mainly a hazard when disturbed, so testing matters before renovating older homes.
The bank, credit union or mortgage company that provides the loan money. The lender sets the rate and terms, underwrites the loan and holds or sells it after closing.