Key Conclusion: Environmental due diligence for condominium complexes present a special challenge because the environmental liability of the individual condominium as well as the entire complex must be considered.
Commercial condominiums present unique challenges for environmental due diligence. The assessor must consider the uses of the individual unit or Property as well as the uses of businesses and parcels adjacent to the entire commercial complex which might impact common areas. Therefore the lender and buyer must be concerned with both individual and shared legal and environmental liabilities.
Recommendations - ERAS recommends that interested parties do not take the attitude that the Property is “only a condominium” and not assume that only the minimal due diligence investigation is necessary. In addition the interested parties should recognize that any recommendations for additional investigation may be very difficult to execute because of complications with the condominium association.