Soil contamination - how to deal with it before purchasing land.
I am looking to purchase a piece of commercial land that is right next to my other piece. It is a 3 acre parcel near the interstate. I have been wanting to purchase this piece for many years and finally know have the chance. It is actually being sold for much less than I had expected. Here’s the catch. There used to be a gas station there and about 25 years ago they found contamination. There fuel tanks were leaking. The appraisal report talks about this and mentions that the purchaser may be responsible but it wasn’t 100% clear on that. 
What steps should I take before purchasing the property? I am obviously going to reach out to the appraiser and the state for more info. 
Should I get my own “soil contamination expert”?

Couple more details. 
I plan to do one of 2 things with the property. Use it for more semi parking. Or build another commercial building. If I build, I am guessing I will have to do something with the contamination. 
Even if it costs a significant amount of money to fix, I still may purchase because I think the land is worth a lot more than the appraiser thinks.
[{"id": "gtpkjmk", "text": "You need a soil engineer to test samples and then you can get estimates. You may have to have all the contaminated soil removed and trucked out then replaced. It can be very expensive. Your county or state should have an environmental department where you can find and read the regulations.", "replies": [{"id": "gtpou7t", "text": "Thank you for the info. Besides talking to the environmental department, I will probably get a 3rd party soil engineer to get their opinion.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gtpoglx", "text": "Have the tanks been removed", "replies": [{"id": "gtpxgl7", "text": "To my knowledge, yes. But it looks like I\u2019m going to have to dive into this a lot deeper than I thought.", "replies": [], "depth": 2}, {"id": "gtpzd7d", "text": "Depending on how long ago they were removed the problem could have at least partially remediated itself. The seller obviously is aware there are cleanup costs and has adjusted his price. I would approach the seller to see if he has any phase 2 environmental reports he would be willing to share with you.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gtprn8b", "text": "$100K easily.... Ck with your local health .... parking is easier. or Call hazard waste contractor.", "replies": [{"id": "gtpxoti", "text": "The good news is I can just use it for parking and it would still be a really good investment. I will be doing a lot more research because this I want to keep all options open.", "replies": [{"id": "gubh5gw", "text": "even if you only using the land for parking, you still have the problem of the land being contaminated....especially if the contamination is ongoing and expanding (getting into drinking water, etc).", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gtprx9a", "text": "Do you know if the groundwater was also tested? Because if you have gw contamination, that\u2019s a whole can of worms you may not want to get into. Additionally, if the contamination migrated off site, you would be responsible for cleanup there too. \n\nDefinitely do more sampling before you buy. And make sure they go deep enough to be underneath where the tanks used to be. Do you know where the contamination is located (ie the location of the old tanks)?\n\nDo you know if there are any open cases with the state environmental agency? If you message me the address, I can do a little research and let you know. If there was a release from a tank and it was reported but not cleaned up, then you\u2019re going to have to get the remediation done and have it closed out with the state.\n\nETA: if you don\u2019t want to send me address, let me know the state and I can direct you to the appropriate database to search.", "replies": [], "depth": 1}, {"id": "gtpvxpi", "text": "You need a Phase I one environmental study. They will likely order a Phase II if you already believe it to be contaminated. Remediation is not cheap. On an AVERAGE case you could be looking at \u00b1$500,000 to correct this. It could go into the millions depending on the extent of the damage. You also need to research whether in your state any owner of the property at any time is liable for all of the environmental damage if discovered in the future. All that being said if you own the neighboring parcel the land is likely worth far more to you than others.\n\nEDIT: Linking Chapel Hill primer on brownfield redevelopment\n\n[https://ced.sog.unc.edu/primer-on-brownfields-redevelopment/](https://ced.sog.unc.edu/primer-on-brownfields-redevelopment/)", "replies": [{"id": "gtpzsf5", "text": "It\u2019s looking like I am going to have to really dig deep into this. Thanks for the feedback!", "replies": [], "depth": 2}, {"id": "gtq0vpc", "text": "That's not accurate. I've been involved in deals where the cleanup is under $10k. Without knowing the extent of the contamination it's impossible to gauge the cleanup cost.", "replies": [{"id": "gtq6tew", "text": "It can vary, and it\u2019s totally impossible to know until the extant of the damage is known for the specific case. Which is why I provided average and not an anecdotal number.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gtpylr3", "text": "I will have to check more into the details. I know they caught it about 20-25 years ago. Then the fuel company had to do certain tests every year for at least a few years. I\u2019m guessing they didn\u2019t have strict rules back then because it seems like they got off pretty easy. Just a slap on the wrist and small fine is all it looks like. I will have to look at the documents again and go through it with the state. I will follow up with you when I have more details. Thanks for the input. I appreciate it!", "replies": [{"id": "gtq2hby", "text": "It's possible it's not a big deal. I would definitely start with the seller before waking up the EPA or spending any money. Very likely seller has a phase 2 report which would be a good starting point.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gtqnh9n", "text": "Even if you plan to use it just for parking, set up a separate corporation to hold title to the property. This will limit your future liability. You may also want to consider buying an Environmental Insurance policy.", "replies": [{"id": "gtr8qe0", "text": "Those are 2 very good points to think about. I never thought about either of those. I appreciate the feedback!", "replies": [], "depth": 2}], "depth": 1}, {"id": "gtrkkgg", "text": "Phase i environmental site assessment followed by a phase II environmental site assessment, followed by additional testing, if warranted.\n\nDO NOT CLOSE ON DIRTY DIRT. \n\nYou need to complete your due diligence and negotiate the time to complete a remedial action plan to regulatory standards, if deemed warranted. More likely you should walk away.", "replies": [{"id": "gtrng7a", "text": "I\u2019m glad I asked this question on here. You guys have brought up many great points. I\u2019ve got some research to do. I appreciate the feedback.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gtycz9b", "text": "Liability varies by state. Some states have funds to clean up and assume liability. Quite frankly if your site is next to it you, your site may also have issues. Think of a mushroom cloud but the reverse underground. Your state EPD is probably your best *free* resource unless you\u2019re in a big sophisticated city.", "replies": [], "depth": 1}, {"id": "gubgqnn", "text": "In my market, we have the seller cover all costs of remediation. In CA with the numbers changing by the year (how many parts per billion), as a buyer you never want to take on the responsibility of contaminated land...at least, I never recommend any of my clients to do so. On a valuation method, typically you take the fair market value minus all of the costs to remediate the land....that is your purchase price.", "replies": [{"id": "gubh62u", "text": "Seems pretty logical. Thanks for the feedback!", "replies": [], "depth": 2}], "depth": 1}]