Series 29 – Recognized Environmental Condition (REC) Type 5

Jun 19, 2020

This is the twenty-nineth in a series of light, short and visual talks on taking control of environmental-risk concerns that haunt otherwise lucrative transactions in commercial and industrial properties, and even residences.

The Phase I Environmental Site Assessment provides a tool for the evaluation of environmental-risk concerns in the real-estate transactions. This tool is called the RECOGNIZED ENVIRONMENTAL CONDITION (REC).

The REC has been in development since early 1990s. It is an industry-wide agreed-upon statement that aims to define the environmental liabilities that the real estate-transaction stakeholders should focus on. These stakeholders usually include sellers, buyers, lenders and their legal and commercial agents (e.g., attorneys and brokers).

The official definition of REC is a conglomerate of six (6) definitions cemented in one sentence that’s liable to challenge some of the brighter minds among us. This series breaks it to chunks that can be assimilated individually.

 

 

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