Lenders have a vested interest in the condition of a property they will accept as collateral. If contamination is discovered later, the value of the property can be significantly reduced and can make the property difficult to resell.
Make sure to discuss with your lender whether a Phase I ESA will be required. They may also have additional requirements that need to be included. The lender may also need to be identified in the ESA report as an “additional user”, or may require additional liability protections, such as a “reliance letter”. Some lenders also prefer that they order the Phase I ESA directly rather than having the borrower order one.
Understanding your lender’s requirements at the onset will save time and money, and will avoid having to make last minute changes prior to closing.