Top 5 Red Flags a Phase I ESA Can Uncover Before You Buy

Real estate deals move fast—but skipping environmental due diligence can be costly. A Phase I Environmental Site Assessment (ESA) is designed to uncover hidden issues before they derail your deal. Here are the top 5 red flags Oak Environmental Consulting often finds during Phase I ESAs in New Jersey.

1. Underground Storage Tanks (USTs)

Underground storage tanks are common in New Jersey, especially at older properties. Hidden heating oil or gasoline tanks can leak fuel into soil and groundwater. Cleanup costs can quickly reach tens of thousands of dollars, making this one of the most serious risks.

2. Historic Industrial or Dry Cleaner Use

Even if a building looks clean today, its history matters. Past uses like dry cleaners, auto shops, and factories often left behind chemical contamination. These issues may require NJDEP reporting, further investigation, or remediation.

3. Stained Soil or Stressed Vegetation

Visible oil stains, dead patches of grass, or unusual odors during a site visit are clear red flags. These signs can indicate past spills, leaks, or illegal dumping that may have impacted soil or groundwater quality.

4. Nearby Contaminated Properties

Environmental risks don’t stop at property lines. A neighboring gas station, former dump, or industrial facility may have contamination that migrated onto your property, especially through groundwater.

5. Gaps in Historical Records

Incomplete ownership records, missing aerial photographs, or gaps in property history can raise concerns. When the property use history is unclear, the risk of hidden contamination increases.

Why These Red Flags Matter

Each of these findings can delay closings, reduce property value, or trigger costly NJDEP remediation requirements. For buyers, sellers, attorneys, and lenders, knowing about these risks early is critical to protecting your investment.

How Oak Environmental Helps

At Oak, we don’t just point out problems—we provide solutions. If a red flag arises, we guide clients step by step through the next actions, including Phase II testing, remediation planning, or working with an LSRP for NJDEP compliance. Our goal is to keep your deal moving while protecting your bottom line.

Take the Next Step

🛑 Don’t let hidden environmental problems kill your deal. Schedule a Phase I ESA consultation with Oak Environmental Consulting today. 📞 Call us at 551-525-3211.