Curious what kind of pricing you're talking about?  As others have said, the 50-year COT is typically treated as an add-on that clients rarely demand due to the high cost and low chance of finding something of environmental significances that would not have been identified through other standard sources.

An alternative to an expensive 50-year COT, might be a low-cost abstract of data that the title company already has in their databases.  Can't you just type in a parcel number and pull 20-30 years of ownership history, a copy of the most recent deed, a parcel map, and building summary (date constructed, SF, etc.)? 

If you could sell that package for $20 then I think you might see some significant intrest from the Phase 1 community. I've got an account with a title company right now where I can access this information and I use it all the time.  But getting the account set up, and dealing with their customer service has been like pulling teeth because their business model does not make it easy to be a low volume customer.

Matt

10% is probably even high based on my experience over the years.  I'd guess less than 5%.  The primary reason for that is the cost.  $20-$30 can be absorbed into the cost of a standard ESA.  $200-$300 cannot.

As a title search firm, we are familiar with this issue. We have worked with many environmental engineering companies in the past with environmental lien searches, and COT's. It is easy to see where the end-user client price resistance is a prohibitive factor in including a chain with an ESA. The language of the ASTM standard does seem to indicate that an ownership history is required, but not necessarily a formal chain of title search. Some environmental firms interpret it either way.

We have often provided a hybrid search product for environmental firms; an ownership history list. Not a full-blown chain of title derived from examining deed documents and vesting transfer, but not just a tax owner search either. It compiled data from a number of sources, listing names which appear to have been associated with the property during the specified time period. Sometimes this also includes tenant companies, which some clients find to be a benefit. For example, if "1250 Main Street, LLC" owned the property in 1975, it might not indicate any issue for the site assessment. But if a tenant is identified as "XYZ Refining", that could suggest more investigation. On a regular chain of title ownership search, the tenant would never show up.

I understand the cost issue, a fully abstracted, 50 year title search can be hundreds of dollars. On some complex commercial properties (which many Phase 1's are worked on), it can be even higher especially if there are splits or trust holding companies.

With ESA price ranges around $1000, I don't know how you guys can get it all done, hats off to you for that.

Depending on how strictly the ASTM standard and AAI wording is interpreted, a reasonable person could conclude that the ownership information could come from the owner, and another could conclude that a full-blown abstracted search from deed examination is needed. For those environmental professionals who want to include a COT but don't have the budget, it is possible to do it yourself.

Title searching is tedious, and requires attention to detail, but it is intuitive. If you build some time in your schedule for 3 - 4 hours in the records room, you can certainly get the info. I would recommend against trying to search online, even using the counties own website. The electronic records are often inaccurate, and missing some info.

Title insurers, and other professionals who have to "put there money where there mouth is" based on a title search do not allow the use of electronic records for that reason. Your call, but it is a risk.

Let me know if I can help with any advice on the subject.

Dave Pelligrinelli

AFX Title

AFXC.com

TitleSearch.com

EnvironmentalLiens.com

Ms. Myers:

I think there is a bit more involved in a COT than what is helpful for the Phase I process. I'm not a Title Search professional, so somebody with more expertise can correct me if I am wrong.

I always do an ownership history at the Register of Deeds on my own. That said, the ASTM does not require it. It is rather one of the several options listed for historical use information. In fact, if you use it, you must supplement it with another source (it cannot be the only source). Here is part of the appropriate ASTM section:

 8.3 Historical Use Information:

8.3.1 Objective—The objective of consulting historical sources is to develop a history of the previous uses of the property and surrounding area, in order to help identify the likelihood of past uses having led to recognized environmental conditions in connection with the property.

8.3.2 Uses of the Property—All obvious uses of the property shall be identified from the present, back to the property’s first developed use, or back to 1940, whichever is earlier. This task requires reviewing only as many of the standard historical sources in 8.3.4.1 through 8.3.4.8 as are necessary and both reasonably ascertainable and likely to b useful (as described under Data Failure in 8.3.2.3). For example, if the property was developed in the 1700s, it might be feasible to identify uses back to the early 1900s, using sources such as fire insurance maps or USGS topographic maps (or equivalent). Although other sources such as recorded land title records might go back to the 1700s, it would not be required to review them unless they were both reasonably ascertainable and likely to be useful.

Thanks for bringing up this important topic. I think it could make interesting discussion. I'm interested in knowing this. Aside from finding that XY Oil Company owned the property in the 30's (which I have also seen), how often do you find information from this source that actually rises to the level of being helpfull? Give me some examples, I am not often helped by this source. I do it, but I could use some real world encouragement that it sometimes pays off big.

Also, I agree with MattF - if there was some form of title product that had any value for our purpose whatsoever, and it was available in the $20 range, I would probably be interested in hearing more about it. 

Chris, regardless of whether you're discussing environmental professionals or real estate professionals such as title searchers, my comments stand.  I'm sure it's possible to find irresponsible people in most professions; I'm aware of a couple of EPs who are doing hard felony prison time right now.  Doesn't mean EPs are, as a group, "unprofessional."  The same could be said of people in title-search firms, who by and large are honest hard-working folk trying to make a living the best they can.

With respect to the "necessity" of doing a title search, you are projecting the need to identify AULs (which is a User requirement) onto the EP.  Once again, you imply that it is a responsibility of the EP to conduct a title search, and it just isn't.  Again, if your clients expect this service of you and you choose to provide it, more power to you; if they don't expect it, it's still admirable of you to provide some lagniappe if your firm can afford it.  But please don't imply that those of us who do not conduct a title search in doing a Phase I are somehow not meeting the Standard.