When is the best time to order due diligence?

The timing of "when to order" physical due diligence services is often overlooked. When is the proper time within a real estate transaction or site development to complete the appropriate due diligence? Most real estate professionals understand that the primary purpose of environmental due diligence may be to satisfy various criteria relative to regulatory liability. However, a certain advantage to conducting this due diligence near the beginning of the transaction is the ability to use the conclusions of various reports (ESA, PCA, Hazardous Material Inspections, etc.) in making a business decision as to whether a specific site is a viable option. For example, if an ESA report concludes that a specific parcel was formerly a gasoline station, then that client may decide that the risk and possible costs associated with further evaluation and cleanup are too great. Making this decision early in the process allows the client to pursue alternative sites while still achieving the goals of a development or expansion schedule.

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