Environmental Covenants in Real Estate Transactions: Minimizing Exposure Risk to Contamination

Description

Most real estate transactions include environmental issues that must be addressed. Parties to these transactions and their counsel must be aware of the environmental regulations which exist at both the federal and state level and often call for environmental covenants to minimize the risk of exposure to residual environmental contamination on the property in question.

Activity and use restrictions are used to limit exposure to contaminants by limiting their pathways, such as groundwater or soil extraction. Further, the state may impose obligations requiring prior approval before excavation, as well as inspection and reporting requirements.

Parties and their counsel must understand and consider environmental covenants and their impact on property transfers or when financing real estate transactions.

Listen as our authoritative panel of environmental counsel examines the statutory requirements for environmental covenants and provides guidance for determining if and when environmental covenants are needed. The panel will also offer best practices for negotiating and structuring these covenants.