Glossary · Doing the deal
In short
This is a clause in a purchase agreement where the seller agrees to cover the buyer's costs for any environmental liabilities that arose before the sale. It protects you from past issues.
For businesses with real estate or operations that could have environmental risks, an environmental indemnification clause is crucial. It ensures the seller is responsible for clean-up costs or fines from historical pollution. Always insist on this protection and consider a Phase I Environmental Site Assessment.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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