When environmental risks related to a building purchase should be disclosed to a prospective buyer, Phase 1 survey is a visual inspection process designed for this special purpose.
Financial institutions like banking sectors require this survey report in order to grant a mortgage on commercial properties.
They want to know whether the assets had been contaminated by environmental problems in the past and whether they are free from similar negative liabilities as on today.
Such surveys are not warranted on residential properties.
The necessity for such a survey surfaces to the foreground only in case of commercial priorities.
American Society for Testing and Materials has specified certain standards for phase 1 surveys.
It recommends the following steps: the visual survey of the site and also of the adjacent areas and searches of federal, state and local databases.
Underground realities usually will not be identified as it is a visual survey, unless they have been registered in some environmental database.
The buyer of a building is responsible for the environmental cleanup of that area.
Problems for Phase 1 environmental surveys - Phase 1 surveys underline the following problems.
oMaterials with asbestos content.
oPaints based on lead.
oRadon gas.
oFacilities for wastage disposal.
oCloseness to potential areas.
oPCB containing goods.
oContamination due to fuel or solvent.
oTanks buried with fuel storage.
oContamination caused by previous use.
Problems may decrease the property value.
Even if you plan to buy the property without getting any loan or mortgage, it is mandatory that you should complete the phase 1 survey because, if you want to sell the same site on a later date, the prospective buyer may find some environmental hassles for which you may be held accountable for the incongruities and discrepancies caused by the previous tenant or buyer.
Besides, bigger problems may decrease the property value and scuttle the sales possibilities.
Phase 1 survey is employed mainly by the financial sectors for portfolio acquisitions.
Lenders need the survey report for sanctioning loans or mortgages.
The developers and promoters are also in need of this survey document to get it related to planning conditions.
The phase 1 desktop study in United Kingdom includes the following features: oA clear assessment of historical ordnance survey maps.
oAn overview of the basic facets of geology.
oAn estimation of the strong impact from mining and other issues related to ground stability.
oAn evaluation of ground gas susceptibility.
oThe nearness of wastage management facilities.
oA site check with photographic evidence.
oAn analysis of environmental data collected from the Environmental Agency, the Coal Authority, British Geological Survey, Natural Environment Research Council, English Nature, Radiation Protection Division of the Health Protection Agency and the related Local Authority.
oA careful study of the vulnerability of surface and ground water resources.
oEnquirer reports required by the local authorities for planning, environmental health, building control and petroleum licensing information.
oAn initial site concept.
oA judgment of environmental risk.
The risk appraisal within a phase 1 environmental desktop report relates to apparent suggestions suitable to the site, legal requirements, legislative controls and methods to eliminate the probable risks.