Law360, New York (February 9, 2016, 11:00 AM EST) -- In any transaction, unless environmental due diligence is sufficient to reveal existing issues and provide a basis to determine associated costs, at least one party may not end up getting what it bargained for. Where a transaction involves real estate, whether it is a merger, acquisition, real estate purchase, sale, lease or financing, environmental obligations and liabilities will be allocated between the parties. The allocation will be accomplished through representations and warranties, indemnities and covenants, sometimes setting "caps" and "baskets" for recourse, and may involve escrowing funds to cover future environmental costs. Determining and assessing the environmental issues, liabilities and costs is essential in order to appropriately frame the business deal and the contract provisions....