Phase 1 Environmental Site Assessments (ESAs)

A New Brunswick Guide

Clipboard with a Phase I ESA form for a Phase 1 Environmental Site Assessment
Clipboard with a Phase I ESA form for a Phase 1 Environmental Site Assessment

Commercial real estate transactions in New Brunswick often involve bank financing, and routinely require a Phase 1 Environmental Site Assessment (ESA) before approving a loan. At Axis Environmental, we prepare these reports every week for buyers, sellers, lenders and their advisors, and we know exactly how they fit into the deal.

What is a Phase 1 ESA?

A Phase 1 ESA is a professional, non-invasive investigation that determines whether a property has any current or historical environmental risks. Our team reviews records (aerial photos, fire insurance maps, government databases), walks the site, speaks with owners/tenants, and checks neighbouring properties for possible contamination sources (former gas stations, dry cleaners, industrial sites, etc.). No soil or groundwater sampling is done at this stage—that only happens in a Phase 2 if the Phase 1 flags a problem.

The result is a clear, bank-ready report that either gives the property a clean bill of environmental health or identifies issues that need further attention.

Why Banks Require It for Commercial Deals

Canadian banks and credit unions will not release funds for commercial purchases without a satisfactory Phase 1 ESA. Their reason is simple: environmental contamination can cost hundreds of thousands (or millions) to clean up, and the liability can follow the new owner, the lender, or even the previous owner. A properly completed Phase 1 protects everyone involved and satisfies the lender’s risk-management requirements under Canadian environmental regulations.

When Does It Happen in the Transaction?

  • Best practice: Include a Phase 1 ESA condition in your offer to purchase.

  • Typical timing: The assessment is ordered after the offer is accepted and during the due-diligence period (usually 10–30 days).

  • The report is usually completed within 2–3 weeks, giving the buyer time to review findings, negotiate with the seller if needed, or walk away if a serious issue is discovered—before financing is finalized or the deal closes.

Why New Brunswick clients choose Axis Environmental

  • Fast turnaround that keeps your deals on schedule

  • Clear, easy-to-read reports that you, your lawyer and your lender can understand

  • Local knowledge of New Brunswick properties, historical land uses, and regional environmental regulators

  • Straightforward, no-obligation quotes

Whether you're buying, selling or financing a downtown Miramichi commercial building, a Moncton retail plaza or a Saint John warehouse, a Phase 1 ESA is now standard practice, not an optional extra.

Need a Phase 1 ESA quote or have questions about the process? Call (506) 424-7191 or email info@axisenvironmental.ca. We're here to make the environmental side of your transaction simple, transparent and stress free.