Oftentimes, when lenders want information about a property, they will ask for a desktop review / risk assessment. This document is less involved than other ones and may be conducted as an initial report. It does not involve a physical visit to the property but may reveal a need for further investigation – such as a Phase I Environmental Site Assessment.

The goal is to provide a lender (or investor) with the knowledge it needs to ensure that its investment in the land is not at risk.

The Usage

When a property is not suspected to have any environmental issues, a Desktop Review / Risk Assessmentmay be conducted on the property. The review provides enough background information on a property for a lender or potential buyer to decide whether or not the land is safe to purchase without potential risks from contamination – either on the property or from neighboring properties.

The risk assessment will also consider the potential risk to the property being purchased and to surrounding properties. The type of business may have a high risk to surrounding land, groundwater, natural habitats, local bodies of water and air.

The Content

The research will take a look at databases storing the reports from Federal, state, and local agencies that regulate hazardous materials.

A look at the historical usage of the property will also be made. It will consider how neighboring properties have used their land to determine if possible contamination might have come from them.

The RSRA

The Records Search with Risk Assessment (RSRA) is a document that is more complex than a standard desktop review and risk assessment. It complies with the needs of the SBA. In addition to the above information, it requires the examination of the Sanborn Fire Insurance Maps and / or city directories.

The desktop review is a less expensive way to examine a property for problems or to evaluate a potential buyer. It would only be used where there are not any suspected problems but may uncover the need for further investigation.