Call Us: (800) 419-4923
 Call Us: +44 (0)20 3865 7701
 Call Us: (787) 822-8377
 Call Us: (437) 855-4925
Partner Engineering and Science, Inc.
Partner Engineering and Science, Inc.
You are here: Home » Resources » Articles » What to Do When Storm Damage Occurs During Escrow

October 2, 2017

What to Do When Storm Damage Occurs During Escrow

By Joseph Derhake, PE

IF A NATURAL DISASTER DAMAGES YOUR PROPERTY WHILE YOU ARE STILL IN ESCROW, YOU MUST RE-ADDRESS CRITICAL DUE DILIGENCE AND APPRAISAL CONCERNS BEFORE WEIGHING RISK TOLERANCE FOR CLOSING THE DEAL.

Let’s face it, there’s no good time for a storm or disaster event to occur. The devastating impact of recent Hurricanes Irma, Harvey, and Maria showcase the full-scale capacity of destruction that Mother Nature can incur. But if a natural disaster occurs while you are still in escrow, and before the deal has been closed with the lender, it presents some unique challenges, especially if the property has been heavily damaged, beyond cursory drive-by visual assessments.

If your third-party reports (Phase I Environmental Site AssessmentProperty Condition Assessment, and Appraisal) have been done, you need to re-inspect. When the value of the property has been compromised, it essentially presents a reboot on escrow and the due diligence process. It is in every stakeholder’s best interest to carefully reassess full damage, remediation cost, and time scale for restoring the property relative to the investor or buyer’s needs.

Because of many potential vectors of contamination, a prompt Phase I ESA is an important starting point.

Continue reading the GlobeSt blog here.

Other Resources You Might Like


Let us be your Partner

Learn how we can support your next project or share insights via our newsletter.
crossmenuarrow-up linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram