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Environment - desktop survey Print
The modern view is that an environmental desktop survey will be essential in most commercial property transactions. For instance, even if the property is a short-term leasehold interest over the floor of a building for use of an office, the service charge provisions may be sufficiently wide to cover remediation costs in and around buildings.

The Law Society’s Contaminated Land Warning Card advises an independent site history investigation from a commercial company in every transaction when acting for buyers, mortgagees and Ts. Bear in mind that a negative reply to the standard LA enquiries on contaminated land may merely mean that the site has not yet been inspected for contamination by the LA, and does not mean it will not be inspected in the future.

A desktop survey uses information from statutory registers and old maps to see if there is a potential for risk. The main suppliers are Argyll Environmental Ltd, Envirosearch, GroundShore, Sitecheck, Siteguard (AIG), and Sitescope (as well as the many environmental consultants who carry out audits). Typical cost is £150-£200, with a turnaround time of two to four days. Do check the level of PI cover (typically at least £1m – but this may be diluted if a large number of reports are covered in one appointment, so consider asking for separate appointments). Also check the terms and conditions to see that all funders and other named third parties (eg Ts) can rely on the report. Also, what limitations on liability are imposed? At the least, the search provider should be liable for accurately mapping the property plan onto historical maps, for interpreting the reasonably intelligible information on the maps themselves, and for reviewing the dates that are obtained from public registers. Source: A Practical Guide to Environmental Issues in Commercial Property Transactions (Helen Loose and Nick Stalbow of Ashurst; Legalease; £49.95; call 020 7396 9313 or e-mail ). © Practical Lawyer

March 2006
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