Quick Overview Environmental studies
A quick overview of environmental studies. What does this mean? Have you ever heard that you need a phase one or a Phase two environmental study on a specific property?
If you’re dealing maybe in farms or ranches or more land, then maybe that’s something that does come up for
You if you’re going to if you’re going to build on a lot, do you? Do they require that? Yeah, it depends on your lender and what was previously on the property. So we do have a link here that we’re going to show off and we’ll get you guys over there.
And if you take a look here, this is a company that you could order such items from. Environmental assessments is the name of the company and their websites up here at phase one expert. So it’s always nice to have a dot expert link, right? Kind of interesting.
I’d never and maybe someone just wants to know have a study done right, but not for a lender or for financing, and you just want to know kind of what’s going on. I’m going to end.
Yeah. Then you could absolutely do that. And so these studies here in particular for a phase one study, is going to run you about two thousand for a study.
I don’t want to do that.
And what that’s going to do is tell you if there’s anything that needs to be studied further so that it’ll include a professional coming out, taking pictures, touring the land and seeing and doing research based on the historic use of the property to see if there is anything currently on the property or touching the property.
That could be a problem with any of its neighbors. So this would cover items such as maybe if there was a gas tanks disposal of trash. There might have been chemicals put on. There might have been a home that was torn down in an illegal way.
And there’s something there. Underground storage tanks for propane or septic or some of those things. If there was like a mine there previously for coal or something and was it recaptured correctly? Is there a water runoff going into a certain spot?
Are one of your neighbors draining something onto your property? That could be an issue. So if they find anything in a phase one inspection, then there is a more detailed inspection, often a phase two. If there is any type of mitigation done or anything like that.
So that might be you’d probably need a phase two on any property that ever had any underground storage tanks of any type. So specifically, like a gas station would be like the most readily apparent one that you would pretty much be like, All right, cool.
There’s a gas station here. Yes, let’s do that. You know, if you have any property that there used to be a farmer that had they often will have gas tanks on their property is a farmer and they have a dye in it so they don’t pay the highway tax because it’s going to be used on their property so they’ll have a tint in their fuel.
So that’s something a little unique there. And yeah, OK. So if you if that happens to be the case, then you would need a more in depth phase two. So these inspections are going to take a couple of weeks to complete. It’s going to take several hours for them to tour and walk the property for each specific one.
But that’s what you can get now. With this, there’s all types of other reports that you might also do. Right. So the environmental is kind of the first one.
A desktop review is going to be if you previously had a study done and you want it to have that new studied, reviewed or updated kind of like if you had a survey and you wanted to get that updated for some reason, then you could do that. And if nothing changed, but just bring it to current.
Ok, I have a question. Are these filed somewhere? Not like a historical review. If somebody had a test before, they would have to know that they had a test. We couldn’t go back and discover that.
Yes, correct. So it would be a question that you would probably have on your sellers disclosure. If there had previously been one or any issues with it, then that would be disclosure type information that you would pass on to the next person in.
When you’re completing a study, there’s a questionnaire that sent out with a lot of questions and then you answer and say, Has there ever previously been a study done and could you provide it to me?
They’re also looking for chain of title and contact information to be able to get in touch with people to ensure that all the questions are kind of asked and they make sure there’s not anything that’s there that they that they should know about.
Bottom line is, I think you should always ask questions. Mike is really good about asking questions, and no one’s going to just volunteer information, and sometimes they honestly do forget. So when you start doing a project or something like this, you want to ask the seller the questions because then it puts it on them.
If they say no, right, if they say, I don’t know or no, this never happened here, and then later you discover it did well, then you have you have something well,
So a good example of this would also be something you couldn’t necessarily see. We were at a property specifically that I can remember where there was a trash dump that was uphill or upstream, so the groundwater would travel through the ground and to this property downhill.
And so the property was downhill of a former landfill that we weren’t readily apparent, readily knowledgeable about. But we did find that question and it was contaminating, potentially contaminating the groundwater that they were drinking from and there were certain levels of it.
And they’re like, Yeah, no, no, it’s fine. If you just put like chlorine tablets in there, you’re totally fine. And it was like, Wait, hang on, let’s ask some more questions here. So that would be something that would show up in an environmental study that they would be testing the soils and or the water. So there’s more things that you can dig into
That was not not disclosed at all, but once the questions started being asked, it was then, Oh yeah, it really smells over here or and we learned all these different things, so it was interesting. But if you hadn’t have asked, I would never have known. So ask the questions.
Yeah. So those are just some different things, and we hope that helps you out might help you out on this property or on a one in the future.
But specifically, if you ever have anything that has a, well, a septic on site instead, or like some type of leech field or something like that, any type of water, anything unique, that’s a type of thing that you would probably want to have concluded on it and probably just ask the seller to provide it for you because there’s no reason for you to go under contract until you have all of that stuff completed.
Part of your due diligence kind of like an inspection, and
It’s not just large parcels of land. Right, right? Say you buy a home that is on an acre or two and then next to it is a large parcel of land. Mm hmm. So lots of lots of uses for this. There you go. That’s a quick overview.