Limited Due Diligence Reports

Environmental Transaction Screens (ETS) are a voluntary procedure intended to identify Potential Environmental Concerns (PECs) for commercial real estate. They are completed in accordance to the American Society for Testing and Materials (ASTM) Standard E-1528-2014, and  are meant to be a screening tool for those who wish to conduct limited environmental due diligence, and usually only recommended for low risk property types with available historical information.

Read more about the differences between an Environmental Transaction Screen (ETS) and a Phase I ESA.

Environmental Risk Reviews is another type of limited review developed by PM for our clients.  The scope of work for an ERR is intended to be very flexible and efficient to keep costs low and turnaround times as quick as possible, yet still provides the necessary information.  The report also provides a Risk Summary Analysis, which describes potential costs a lender could incur if they foreclose.

A typical ERR scope of work is a site visit, interviews, database and historical sources (aerials, Sanborn maps and city directories). However, the scope can include any combination of the following:

• An interview with the owners/occupants. Or a site reconnaissance, at which time owners/occupants would be interviewed.
• Review of Regulatory Databases for the subject properties and nearby surrounding areas.
• Review of any previous environmental information (i.e. correspondence, reports, etc.) provided by the bank or the borrower (if any).
• Review of pertinent historic sources including aerial photographs, Sanborn Fire Insurance Maps (if available) and city directories.
• Review of reasonable ascertainable Assessing, Building, and Fire Department records.
• Review of utility connection information.
• Completion of a letter report summarizing this information.

Desktop Environmental Review reports are very similar to Environmental Risk Reviews, however, they are completed when a site reconnaissance is not required/necessary.  A DERR is typically done on low-risk property, and/or when fairly recent reports are available that adequately cover the property.  The DERR will also include a Risk Summary Analysis as described above.

These reports can include a combination of any of the following:

• An interview with the owners/occupants.
• Review of Regulatory Databases for the subject properties and nearby surrounding areas.
• Review of any previous environmental information (i.e. correspondence, reports, etc.) provided by the bank or the borrower (if any).
• Review of pertinent historic sources including aerial photographs, Sanborn Fire Insurance Maps (if available) and city directories.
• Review of reasonable ascertainable Assessing, Building, and Fire Department records.
• Review of utility connection information.

Completion of a letter report summarizing this information.

A Records Search with Risk Assessment (RSRA) is a screening tool developed by the Small Business Administration (SBA) for low risk properties being financed with the SBA, but are also used for conventional loans by lenders.

Scope of work includes the following:

• Review of Environmental Databases for the subject properties and nearby surrounding areas.
• Review of pertinent historic sources including aerial photographs, Sanborn Fire Insurance Maps (if available) and city directories.
• Completion of a letter report summarizing this information.

Through our parent company, Pinchin, we offer Limited Due Diligence reports to those located across Canada. Learn more by reaching out to our environmental consultants at our Mississauga office.