Environmental issues commonly arise in commercial real estate transactions. The selling party is generally liable if it does not disclose known environmental issues to the purchasing party. However, unknown (and undisclosed) environmental concerns are the more common source of litigation.
Land contamination is the predominate environmental concern in commercial real estate transactions. In general, the current owner of the site is responsible for any liabilities that arise from land contamination even if the contamination is caused by prior owners. Land contamination takes on a particular urgency if it has potential to affect the water table and may open a company to a host of lawsuits from a variety of interests.
Mold is another prominent concern, in commercial real estate transactions. Owners are regularly embroiled in expensive and time-consuming litigation brought by tenants, employees and others affected by toxic mold exposure.
Asbestos is a common concern in older commercial buildings. Locating and removing asbestos from boiler rooms, roofs and flooring can be an expensive procedure. It is imperative that a prospective buyer identify the presence of asbestos and determine the cost of mitigation prior to the inspection objection deadline.
Radon contamination is another common issue in Colorado. Radon is a colorless, odorless gas that is present in Colorado soil. Colorado law requires businesses to install a radon reduction or mitigation system if radon levels are too high and imposes mandatory fines for failure to comply.
The Thode Law Firm P.C. works with clients to find practical solutions to environmental issues, both before and after the sale, and helps manage any related litigation. Call us today for a free consultation about environmental issues involving your commercial real estate.