What does the term "recognized environmental condition" (REC) refer to?

The term "recognized environmental condition" (REC) specifically refers to situations where there is a presence, or likely presence, of hazardous substances or petroleum products at a property that may pose a liability risk. This designation is crucial in environmental assessments, especially during transactions involving real estate, because it indicates that there may be environmental contamination that needs to be addressed. RECs are identified through various investigations, such as Phase I Environmental Site Assessments, which evaluate the historical and current usage of a property and adjacent properties to determine potential environmental risks.

Recognizing these conditions is critical as they can lead to significant legal and financial liabilities for property owners and can impact decisions about property transactions, development, and remediation efforts. Understanding this term helps stakeholders adequately assess environmental risks and comply with relevant legal frameworks.