Environmental issues in property transactions—acting for a seller
Produced in partnership with Keith Davidson of Irwin Mitchell
Practice notesEnvironmental issues in property transactions—acting for a seller
Produced in partnership with Keith Davidson of Irwin Mitchell
Practice notes
Types of environmental Liabilities
There are several types of environmental liabilities associated with land, buildings and fixtures.
Under the caveat emptor/buyer beware rule, these liabilities and any capital expenditure Requirements will generally pass to the buyer as the new owner of the property.
However, whether the seller retains liability will depend on the particular regime, and whether the transaction is an asset sale or share sale. For example, in an asset sale, if the seller has not complied with an environmental permit or has caused or knowingly permitted pollution, these liabilities may attach to the seller company or individuals, even after the sale.
The different types of environmental liabilities are summarised in the table below.
| Sources | Examples |
| Land | Contamination, Asbestos in soil, water pollution, environmental damage, landfills, fly-tipped waste, flooding, ground subsidence, sinkholes, coal mining, unexploded ordnance, radon, Japanese knotweed, wildlife and habitat protection, riparian Ownership, shale gas, energy projects, planning conditions, high speed 2, cross rail, compulsory purchase. |
| Buildings | Asbestos in buildings, air conditioning inspections, energy management and reporting, energy |
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Liabilities definition
What does Liabilities mean?
A scheme's liabilities are its future benefit payments and expenses. The scheme is in deficit if the current value of its liabilities is more than the assets, or in surplus if the liabilities are less.
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