Historically, potential environmental liability concerns often have been a major deal-breaker in the sale or transfer of real estate. Sellers wanted to be free of environmental liability after the sale, while buyers were extremely reluctant to assume liability for a site that could possibly be contaminated.

Likewise, in years past, prospective investors, lenders and financial institutions representing a wide range of industries have been understandably concerned about the risks of unexpected cleanup costs, delays and environmental liabilities that could derail an otherwise promising real estate project. This is because environmental "pitfalls" not only plague commercial and habitation real estate owners, but can also cause significant financial loss to health care institutions.

For example, a health care institution based in the Northeastern United States recently acquired property formerly used for farming to construct a new suburban hospital. Although the environmental due diligence was conducted and the site was determined "clean," more than 100 drums of buried pesticides and herbicides were unearthed during a phase of development.