Does anyone have experience with Phase 2 environmental studies during a due diligence period? I am trying to get under contract on a park, but the seller wants to include a no mortgage contingency and also not allow a phase 2 environment study.
The seller’s reasoning is that if we do a phase 2 and it leads to fines, actionable items for them, and then the sale falls through, they would be stuck with the ramifications of the phase 2 and no sale. I understand this, but I am hesitant to get under a contract that would not allow a phase 2 if one was needed.
I am working with a broker that says he rarely sees a phase 2 happen for mobile home parks. I am wondering if anyone has had any issues with phase 2 studies or phase 1 study findings leading to require a phase 2. Thank you!