should i buy commercial property that is half contaminated?

property has clean soil but water level may be contaminated, should i buy as is and install monitoring wells?
In Buying Property - Asked by vincent c. - Dec 9, 2008
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Answer(s)

David H.
Broker/Agent
Sugar Land, TX

What is the source of Contamination. What kind of contamination is there? What amount? If it is an offsite source you can file for an Innocent Operator Program (IOP) Certificate with the State of Texas. If it does not affect the surface that is a good thing. If your property is not the source of contamination likely you would not be responsible for any cleanup. Generally these types of properties can be developed. Make sure the appraiser knows this.

Dec 9, 2008
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Cecil C.
Broker/Agent
Sandy, UT

It is not a bad idea if like mentioned earlier find the source or what type and how it can be decontaminated. I have company that provides this service to help with decontamination. I am new to loopnet so I don't know what can be posted here other than to say if I can help, I would be glad to. Best Regards.

Dec 10, 2008
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Chris S.
Broker/Agent
Coeur D'alene, ID

I would not even consider a contaminated property unless you know exactly what you are doing and what you are getting involved with. In today's society folks are going back and looking for deep pockets to sue and once you've owned contaminated property, you will carry that liability for life (regardless if you sell down the road). Further, most lenders will shy away from the risk.
No matter what invest in a quality Phase 1, Phase 2 and if necessary Phase 3 environmental report before you close escrow. In my market we pay between $2,500 to $3,000 for phase 1, pahse 2 can be double that and phase 3 all depends on what is required.

Jan 5, 2009
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