The period starting in 1950 saw a change in the way the world is viewed,this accelerating in the 21st Century as the changing climate became a hot topic. One of the major impacts is that developers now must take a great deal of care when purchasing land,as any contamination could cause them many problems and expense.
With this change came laws and regulations and environmental law gradually developed into a separate area,one that overlapped that of construction law when performing due diligence on property purchases for new residential developments.
In fact more and more environmental problems came to the fore in the 1980’s than ever before,the majority dealing with prior pollution.
At the start everyone didn’t know quite how to handle this issue,but over time legal practices evolved and were able to cover the required research into environmental issues,assisting clients identify risks associated with any purchase. Putting it simply,purchasers need to know as much as they can at the start,so they can plan and deal with any highlighted issues.
This is why thinking about due diligence is so vital,especially as now,when you are building something,you have to do an environmental review. The reason for this process for a buyer of land is to obtain as much data as possible. When things are done correctly,it helps to pinpoint if contamination is present,find the risks and see the effect they could have on the cost and timing of the development plan.
In some case there could be parts of the property that you simply can’t build on, but you won’t find out until you start digging. It looks just like a treasure hunt as “You don’t know what you’re going to run into until you get into the ground.”
The good news is that if some problems are found it does not necessarily not be the end of the project as it as it then gives builders and lawyers opportunities to be creative. It’s all a part of dealing with the challenges and opposition to a development project.
Plus,now there is the Brownfield Cleanup Program,which gives liability protection,financial assistance and tax credits that are available when you are remediating a site and redeveloping it.
Whenever you are purchasing real estate,there’s always the concern of what happened on that land historically,and due diligence in reality,is to make sure the purchaser knows what happened in the past. Basically,due diligence can be broken down to asking the right questions at the outset of the purchasing journey,thus protecting the purchaser against liability. Once the risks are known,clients can decide if a project is feasible and can be financed and completed on budget.
See this interesting post for more information