Navigating Environmental Due Diligence in New Jersey

When conducting environmental due diligence in New Jersey, potential property buyers need to be well-versed in both Federal and State laws related to the innocent purchaser defense. To qualify for this defense, due diligence must encompass two critical components:

 Phase I Environmental Assessment (ESA): This assessment evaluates the environmental condition of a property. It aims to identify any potential contamination risks, historical land uses, and hazardous materials. Completing a thorough Phase I ESA is essential for understanding the property’s environmental history.

Preliminary Assessment Report (PAR): The PAR provides additional insights into the property’s environmental status. It includes a review of available records, interviews with relevant parties, and an assessment of potential contamination sources. Together with the Phase I ESA, the PAR contributes to a comprehensive due diligence process.