It is a point of negotition in the contract process. Not knowing what the cost would be a seller is naturally reluctant to make any committment. By doing the Phase II the buyer can assess the risk then make the determination to go forward or not (that is why we have due diligence periods). Once the amount of contamination is established you can determine risk, value clean up if needed, or purchase insurance to cover buyers risk. Then you could come up with an adjusted rate sales price by asking seller contirbution. Problem with some contamination is the clean up could cost more than property is worth.
Sep 9, 2009