The Legal Pitfalls of Contaminated Land

The Legal Pitfalls of Contaminated Land

On 18th December 2014 The Law Society issued a Practice Note regarding contaminated land, outlining their views of good practice in this area, in order for solicitors and licenced conveyancers to protect the buyer.

Land throughout England and Wales has a history of contamination as a consequence from the countries’ industrial growth in areas such as steel, chemicals, petroleum and automotives. Although these industries have significantly modernised our day to day lives, the fallout from such industries may pose a significant risk to nearby properties. As we have become increasingly aware of the damage our activities can cause to the environment, the English Legal System has developed with an aim to try and control any potential environmental threats.

The Practice Note is an affirmation by The Law Society that land contamination can be a significant issue in a transaction if the land has been designated as contaminated. The Law Society states that solicitors and conveyancing practitioners should consider whether land contamination is a potential risk during every land transaction they undertake. Unless instructed otherwise by a client, a solicitor should, in every purchase, lease or mortgage, undertake a CON 29 and LLC1 search to discover whether the land has been designated as contaminated by the local authority.

If this is the case, then further enquiries should be made of the seller, landlord or borrower and the local authority or Environment Agency to try and produce more details. It is important the client is also advised of all the consequences of potentially acquiring an interest in contaminated land, for example, the need to comply with a remediation notice or to obtain an environmental insurance policy.

Alongside advice if acting for the buyer, tenant or lender, the Practice Note covers steps to be taken by conveyancers when acting for the seller or landlord. The note also provides information on remediation notices, unresolved contamination and advice for specific transactions: leases; mortgages; share sales and asset purchases.

Practice notes are not legal advice issued by The Law Society and are not intended as the only standard of good practice a solicitor can follow. However, this Practice Note does represent The Law Society’s view of acceptable practice for handling contaminated land, if it arises in a transaction, and consequently it is a recommended read for any solicitor or conveyancer.

The full Practice Note can be found on the Law Society website at: http://www.lawsociety.org.uk/support-services/advice/practice-notes/contaminated-land/.

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