A buyer is interested in purchasing an industrial property in Hamilton that was formerly used for manufacturing. The buyer's real estate salesperson, Sarah, recommends obtaining a Phase I Environmental Site Assessment (ESA). What is the primary purpose of a Phase I ESA in this scenario?

Question: A buyer is interested in purchasing an industrial property in Hamilton that was formerly used for manufacturing. The buyer's real estate salesperson, Sarah, recommends obtaining a Phase I Environmental Site Assessment (ESA). What is the primary purpose of a Phase I ESA in this scenario?

Answer options:

• To provide a detailed remediation plan for any identified contamination.
• To conduct soil and groundwater sampling to confirm contaminant levels. ✅ To identify potential for contamination and associated environmental liabilities.
• To determine the current market value of the property for financing purposes.

Correct answer: To identify potential for contamination and associated environmental liabilities.

Explanation: A Phase I ESA is a non-intrusive assessment that involves reviewing historical records, conducting site visits, and interviewing knowledgeable parties to identify potential or existing environmental contamination liabilities.