Transaction Screening Assessment (TSA)
A Limited Environmental Due Diligence Option
A Transaction Screen Assessment (TSA) is a mid-level form of environmental due diligence—less comprehensive than a Phase I Environmental Site Assessment (ESA) but more detailed than a Record Search with Risk Assessment (RSRA). While it offers a lower-cost alternative, it also comes with limitations, particularly in terms of legal liability protection.
At Get Phase 1, we help our clients understand the benefits and drawbacks of TSAs and whether they are the right choice for their property transaction.
What’s Included in a TSA?
A TSA includes a Transaction Screen Questionnaire, completed by the property owner, occupants (if applicable), and a site assessor. This questionnaire gathers basic information about potential environmental concerns at the site.
The TSA process also involves:
- Site Visit – A physical walkthrough by an environmental professional.
- Regulatory Records Review – A review of available environmental records (when applicable).
- Interviews – Conducted with property owners or occupants.
- Limited Database Search – A basic review of environmental databases for reported concerns.
TSA & Phase I
How Does a TSA Differ from a Phase I ESA?
Database Searches
Less Extensive Research
A TSA has fewer requirements for interviews, database searches, and offsite research.
Liability
No CERCLA Liability Protections
Unlike a Phase I ESA, a TSA does not meet All Appropriate Inquiry (AAI) requirements, meaning it does not qualify property owners for landowner liability protections under CERCLA.
Reports
Shorter Reports
TSA reports are briefer and less detailed than Phase I ESA reports.
Environmental Concerns
Identification of Potential Concerns Only
While a Phase I ESA identifies Recognized Environmental Conditions (RECs), a TSA only flags potential environmental concerns.
Less Expensive
Lower Cost but No Liability Protection
Although a TSA is less expensive than a Phase I ESA, it does not offer legal protections, making it less advantageous in certain transactions.
Who Needs a Transaction Screen Assessment?
A TSA follows ASTM E1528-14 standards and is often requested by banks and lenders, especially for Small Business Administration (SBA) loans. Many lending institutions prefer TSAs for apartment buildings and commercial real estate, though they can be used for a variety of property types.
At Get Phase 1, we assist clients in determining whether a TSA meets their needs—or whether a Phase I ESA would provide better protection.
How Long Does a TSA Take?
The biggest challenge with a TSA is coordinating the onsite inspection, which requires scheduling and travel time. As a result, a TSA typically takes 10 to 15 days—about the same as a Phase I ESA.
What Does a TSA Cost?
- Record Search with Risk Assessment (RSRA): $850
- Transaction Screen Assessment (TSA): $950
- Phase I ESA: $2,000
While a TSA is less expensive than a Phase I ESA, it offers no liability protection, much like an RSRA. Given that it takes the same amount of time as a Phase I ESA but lacks legal safeguards, many environmental professionals question its value.
Should You Choose a TSA or a Phase I ESA?
Unlike a Phase I ESA, a TSA does not satisfy the “All Appropriate Inquiry” (AAI) standard required to qualify for CERCLA Landowner Liability Protections (LLPs). This means buyers are not protected from future liability related to environmental contamination.
At Get Phase 1, we believe understanding your environmental risks is essential before making a real estate decision. Our environmental experts will help guide you toward the best due diligence option—whether that’s a TSA or a more comprehensive Phase I ESA.
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Ensure Environmental Compliance with a Transaction Screen Assessment Today!
Protect your investment and identify potential environmental risks with a Transaction Screen Assessment (TSA). Our experts provide a cost-effective alternative to a Phase 1 ESA, ensuring compliance and informed property decisions.