Environmental Site Assessment Reports: Do They Expire?
Environmental Site Assessment (ESA) Reports can be completed for due diligence, pre-purchase, financing, and development approval purposes. Each type of ESA report has a different validity period, which means, yes, they do expire!
Phase I and Phase II ESAs
These types of Phase I and II ESA Reports are conducted for due diligence, pre-purchase, and financing purposes. During a property transaction, it is very likely that these ESA Reports will be provided to a Lender as part of the mortgage pre-approval process or provided to a potential purchaser upon completing a conditional and/or final Purchase and Sales Agreement.
As per the Canadian Standards Association (CSA) Standards, these ESA Reports are only valid for a 12 month period (or one year term). If this report is provided to a Lender for use during a mortgage pre-approval or re-financing and is dated outside of the 12 month period, this report will be considered as expired and a new Phase I or II ESA will be requested.
If the Report “Owner” is aware that the use of the report is required for financing purposes and the report is dated close to the end of the 12 month period but is still considered to be valid, Rubidium can conduct an ESA Update at a cost savings to the Client and update portions of the report, as required (i.e., conducting a new Site reconnaissance to verify existing tenants, on-Site operations, and neighbouring operations).
Phase One and Phase Two ESAs
These types of Phase One and Two ESA Reports are conducted for land development purposes. During a Municipal Development Approval, these Reports will be provided to the Municipality for review, as part of the Development Approval Application process and to support the filing of a Record of Site Condition (RSC), if required.
As per Ontario Regulation 153/04, these ESA Reports are only valid for an 18 month period (or one year and a half). If this report is provided to a Municipality without the support of a RSC and is dated outside of the 18 month period, the Municipality may consider this report as expired and may request that a new Phase One or Two ESA be conducted.
If the Report “Owner” is aware of the proposed development plans and Municipal requirements, especially if a RSC is required as part of the approval, Rubidium suggests you start the ESA process at the beginning of your land development project and obtain a RSC in order to avoid report expiration and having to re-do these assessments closer to the finalization of your Municipal approval.