Why is due diligence important
Investigation and/or remediation of contaminated sites, in most cases, is the responsibility of the polluter or current site owner. Purchasers, vendors, lessees and mortgagees need to know if the land is contaminated and their obligations under the Act. Failing to recognise that land is contaminated can have costly consequences for owners or occupiers including potential prosecution and obligation for investigation or remediation of the land in the future.
Some site classifications require disclosure to potential new owners/occupiers when selling or leasing property. Disclosure is required for sites classified under the Contaminated Sites Act, 2003 as:
- contaminated—remediation required;
- contaminated—restricted use; or
- remediated for restricted use.
How Enpoint approach due diligence
Enpoint’s approach to environmental due diligence aims to provide the following:
- a robust assessment of the level of environmental risk and liabilities associated with the site/s, within the context and parameters of the proposed transaction;
- estimates of the financial implications of environmental risks and liabilities associated with the site/s;
- an understanding of the degree of environmental risk to which a change in owner/occupier may be exposed; and
- a sound basis upon which to structure the transaction and/or to negotiate a sale price which reflects these risks.
The level of due diligence required will be based on your requirements to minimise your risk profile.