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An Environmental Risk Review (ERR) is a cost effective due diligence tool for evaluating environmental risk and can be customized based on lender requirements and environmental bank policy. Due to its limited scope of work the ERR is often used in refinance transactions, where a Phase I Environmental Site Assessment (ESA) is not warranted and/or previous environmental reports exist. If concerns are identified then these types of reports will often include a potential cost if the lender were to foreclose.
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The environmental risk of a subject property is evaluated through a review of records and salient information that may include:
- Interview with owner/occupants
- Site Reconnaissance
- Regulatory database review
- Review of previous environmental reports (if they exist and are provided)
- Historical records review such as Sanborn fire insurance maps, city directories, aerial photos and topographical maps
