Real Estate Liability Management

What environmental liability is there in real estate transactions? What do I need to be concerned about? How do I protect my company and/or myself when I am involved in any aspect of property transactions? These are a few challenging questions people managing property face. Facility closures and laboratory moves are challenging to complete without being concerned about protection from land use environmental liabilities. The liabilities and complexity of environmental issues can be daunting. The source of the concerns may arise from regulatory requirements, corporate procedures, financial institution requirements, or sensitivity and heightened awareness by interested parties. Several triggers for seeking assistance can include:

• Property transfers.
• Leasing, renting, or otherwise using property.
• Refinancing property.
• Sublease or terminating a sublease of property.
• Laboratory closure or moves.
• Facility decontamination or closure.
• Cleanouts.
• Waste generating process changes or closure.

Far too often, companies are forced to deal with questions regarding the methods of decontamination and level to which a room or building have been cleaned. Having documents that clearly and accurately demonstrate decontamination procedures, compliance with environmental regulations, and appropriate waste disposal or recycling is critical and could protect a buyer/seller from future claims and avoid verbal disputes over the same. Having these in hand shows an awareness and concern for environmental issues, and may become protection from claims of environmental liabilities.