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Commercial real estate owners must show environmental compliance

On Behalf of | May 4, 2024 | Commercial Real Estate |

If you are involved with commercial real estate in California, you must be sure you are environmentally compliant.

The state has strict laws to protect the environment, covering everything from air and water quality to handling hazardous waste.

Understand California’s environmental laws

California is known for having some of the toughest environmental laws in the United States. One major law, the California Environmental Quality Act, makes sure that any significant decisions about land use consider their impact on the environment. This law helps prevent damage from construction and other large projects.

Commercial real estate owners need to keep up with these laws to avoid fines and legal issues.

Common areas of litigation

Legal problems can pop up in several areas, including pollution from hazardous materials, not following environmental safety codes in buildings and disagreements over land use. For example, if someone does not properly remove harmful materials like asbestos during building renovations, it can cause health risks and lead to fines or lawsuits.

Strategies to mitigate litigation risks

To reduce the risk of getting into legal trouble over environmental issues, consider these steps:

  • Proactive compliance: Make sure to regularly check that all properties meet environmental standards. This could mean updating systems to handle waste better or reduce pollution.
  • Thorough due diligence: Before buying a property, do a detailed check to find any environmental issues, like polluted soil.
  • Environmental insurance: Buying insurance can help cover costs if environmental problems occur.

In addition, regularly getting information from environmental consultants can help keep your practices in line with the law.

By understanding and managing these risks, people in the commercial real estate business in California can protect their investments and help make sure their properties are safe and environmentally friendly.