Enviromental searches have long formed an important element of the search packs used by conveyancers and solicitors when acting on both residential and commercial property transactions.
In 2001 the Law Society provided guidance on contaminated land so that unsuspecting purchasers, with the assistance of their solicitors, could avoid the liabilities, as set out in Part 2A of the Environmental Protection Act 1990, to be responsible for the remediation and associated costs of contaminated land.
A prudent measure in avoiding these costly risks is an environmental search report but, of course, as with all things there can be a requirement for some degree of “further assessment”. This will no doubt involve lengthy talks with the local authority and other parties and with this comes the risk of further costs and also time delays, which themselves may increase a purchasers costs.
To resolve these potential issues Groundsure, together with Countrywide Legal Indemnities, created the Groundsure Home Environmental Liability Insurance, offering a defined outcome that represents a safe and quick route to a quick, fixed cost, completion.
The Groundsure Home Environmental Liability Insurance, purchased with the Groundsure Homescreen or Groundsure Homebuyers Environmental Search Report, covers contaminated land issues regardless of the environmental search result.
The policy will cover the property with a 15 year policy against the associated costs of statutory contaminated land under Part 2A of the Environmental Protection Act 1990, the key features being:
cover for 15 years for the policyholder, and for any lender then the full term of any mortgage or charge;
£1,000,000 indemnity insurance policy, covering remediation and associated costs;
the insurance cover is provided for the property not the named owner, making transfer to future purchasers simple;
cover extends to include costs that may be incurred prior to Part 2A identification.
This could be good news for those purchasers who face the prospect of clean-up charges on a property they may have only recently acquired.
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