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Purchasing or leasing property requires more than just a financial and legal assessment. Performing environmental due diligence (EDD) is a critical step to identify liabilities that could affect property value, usability and compliance.
EDD is particularly important for industrial or commercial purchases and neglecting it could see you purchase a property restricted by contaminated land. This can lead to unforeseen remediation costs, legal obligations and project delays.
At West Soil & Water, our consultant help buyers and developers understand their obligations and verify sites’ status before completing a transaction.
This article outlines some of the checks and processes we undertake to ensure a safe and fair purchase. If you would like to speak directly with one of our consultants, you can contact West Soil & Water at sam@westsoilandwater.com.au or call 0424 021 264.
Environmental due diligence helps uncover a wide range of potential risks that might not be visible during a standard inspection. This includes identifying contamination in soil or groundwater, locating hazardous building materials and verifying whether the site complies with environmental regulations and planning laws.
Identifying issues early gives buyers and developers time to assess the financial and practical implications, whether it be the cost of remediation, suitability for future development, or limitations on land use.
In some cases, uncovering a contamination issue prior to purchase may give you the leverage to renegotiate the sale. Without this process, purchasers risk inheriting sites that are unviable or hampered by obligations and regulations.
Environmental liability is outlined in the Contaminated Sites Act 2003.
If a property has been reported or classified as contaminated by the Department of Water and Environmental Regulation (DWER), the seller or lessor is legally required to disclose this to prospective buyers or tenants. Failure to disclose known contamination can result in serious legal and financial consequences.
However, responsibilities could still fall on the shoulders of the buyer. WA’s ‘polluter pays’ and ‘owner responsibility’ frameworks could leave you with some reporting, disclosure and remediation obligations.
At West Soil & Water, our team has extensive experience in identifying, managing and recording contaminated sites. When advising on a property transaction, we always recommend that the purchasing party:
DWER publishes a database of known and suspected contaminated sites. We recommend conducting a search for the property to reveal whether it has been reported or classified for contaminated land.
Depending on the result, there can be different restrictions and obligations imposed on you as the (potential) owner of the property. This may include strict building regulations for contaminated land
Reviewing the property’s historical usage can identify past activities that may have led to contamination. You can use:
Aerial photographs
Landgate records
Local government archives
Discussions with previous owners or neighbours
Learning about the site’s history will give you a firm understanding of potential contaminations and how you can approach them.
ESAs must be carried out by qualified environmental consultants, such as West Soil & Water. They can be either:
Phase I: A site inspection and review of historical records to identify any possible contamination
Phase II: These are carried out if concerns arise from the Phase I assessment. They include soil and groundwater sampling to confirm the extent of contamination.
ESAs are crucial for informed decision making during a property transaction, providing site specific data that protects you from previously unknown issues.
Assess any existing environmental approvals, licences and compliance records associated with the property.
This includes checking for any outstanding obligations or breaches that could affect future use or require remediation. Whilst you may not be considered liable for any historical contamination, purchasing the property will mean you have to:
Fulfil disclosure requirements
Carry out any required monitoring or management
Maintain the site’s classification
Investigate adjacent or nearby properties for potential contamination sources that could affect the site you wish to purchase. Activities such as fuel storage, industrial operations or waste disposal on neighbouring sites may pose risks.
Environmental due diligence is a critical step in any property transaction. By conducting thorough assessments and understanding legal obligations, buyers and lessees can protect themselves from risks such as contaminated land and asbestos.
An experienced and specialised environmental consultant provides the necessary knowledge to navigate this complex process effectively. At West Soil & Water, our consultants have nearly 15 years of experience, helping them negotiate fair and worthwhile transactions.
In addition to transaction advice, we can also assist with:
Advice on remediation costs
If you would like to speak with a contaminated land consultant, you can contact us at sam@westsoilandwater.com.au or call 0424 021 264.