Series 79 practice questioneasyEnvironmental due diligence – Phase I ESA
Which of the following is the industry-standard first step in environmental due diligence for a real estate-heavy acquisition?
- AConducting a Phase II Environmental Site Assessment
- BConducting a Phase I Environmental Site Assessment✓ Correct answer
- CApplying for environmental insurance
- DSubmitting a Form 8-K to the SEC
Explanation
Why B — Conducting a Phase I Environmental Site Assessment
A Phase I Environmental Site Assessment is the standard initial step to identify potential environmental liabilities. Phase II follows only if concerns are identified. Environmental insurance and SEC filings are unrelated to the initial due diligence process.
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