Imagine buying a property only to discover that hidden underground tanks are leaking fuel into the soil, or that decades ago a dry cleaner left behind chemicals that still linger beneath the surface. Suddenly, your new investment comes with a multi-million-dollar cleanup bill.

That’s the risk posed by a little-known acronym: REC, short for Recognized Environmental Condition. And if you’re buying, selling, financing or potentially leasing commercial real estate, it’s something you need to understand.

What is a REC?

In the commercial real estate world, a REC means there is the presence or likely presence of hazardous substances or petroleum products on a property. These conditions may come from:

A past or current release of contaminants into the soil, water, or air.

Evidence suggesting

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