Buying or selling a property is a major financial decision. Unrecognised environmental risks can have significant implications on those transactions, impacting value, usability and compliance.
In Western Australia, the Contaminated Sites Act 2003 places obligations on landowners to report and disclose contamination. But if those disclosures are insufficient, buyers should be able to recognise warning signs of contamination.
In this article, we outline 5 red flags of contamination and how West Soil and Water’s contaminated land and soil testing can protect you during a transaction.
Environmental issues aren’t always visible on the surface. Contamination clues can lie beneath the soil, in groundwater or in historical land use records, so it’s important to understand what to look for. If overlooked, risks can evolve into:
Reduced property value and deterred investors
Costly site investigations and remediation works
Delays or blockages of development approvals
Ongoing compliance issues with DWER and other regulators
If you recognise the early warning signs and conduct thorough contaminated site testing, these issues can be managed before they escalate.
Sites that once housed factories, fuel depots or workshops often contain hydrocarbons, solvents and heavy metals. Farmland, on the other hand, often carries a history of pesticide and fertiliser use that can leave residual contamination.
A physical walkover on site can reveal soil staining, unusual odours, distressed vegetation and asbestos fragments. While not always conclusive, these can all point to a contamination risk and warrant professional investigation.
DWER maintains a Contaminated Sites Database that lists properties with a contamination classification. Even if a property neighbours a listed site, there is a potential risk of contamination (through groundwater migration).
All properties should maintain up-to-date environmental assessments and records of planning approvals. If a property doesn’t have them, it’s important to ask why. Often, missing information indicates contamination risks have been poorly addressed.
Contamination concerns lead to conditional planning approvals, zoning restrictions and limitations around water use. These should all be investigated before a transaction proceeds.
Caution is a necessity in any property transaction. If red flags such as visible contamination or missing site records appear, it’s best to halt negotiations until you can achieve further clarity. Proceeding without proper checks risks transferring legal liability and can leave you exposed to costly disputes down the line.
The most effective way to resolve uncertainty is to commission a Preliminary Site Investigation (PSI). A PSI combines desktop studies with on-site inspections to establish the likelihood of contamination. If a high risk is suspected, a Detailed Site Investigation (DSI) may be required. These involve soil and groundwater testing for petroleum, asbestos and other contamination and provide hard, quantifiable data.
Although pausing a sale or purchase may feel inconvenient, these investigations protect you in many ways. They confirm whether the property can be used as intended, clarify the need for remediation and ensure all parties meet their disclosure obligations. In short, a pause in the early stages avoids far greater delays in the future.
Conducting environmental investigations offers more than just a compliance advantage, it also gives you clearer picture of:
The type and extent of contamination
Whether remediation is required before development or the transfer of ownership
The cost and timeframe of managing risks
Whether the property is suitable for its intended use
With raw data in hand you can negotiate fairly and with full knowledge of the risks involved.
At West Soil and Water, we specialise in providing a full suite of contaminated land management services including investigations, testing and remediation. Our team conduct PSIs and DSIs tailored to site history, intended use and regulatory obligations. If you are a prospective buyer or seller, our reports help you:
Identify risks before contracts are signed
Meet obligations under the Contaminated Sites Act 2003
Avoid unexpected remediation and delays
In property transactions, environmental red flags are too important to ignore. Whether there’s missing records or visible signs of contamination, neglected warnings can dramatically impact value, compliance and project viability. But by pausing to investigate further, all parties can protect themselves and their investments.
At West Soil and Water, our team have provided due diligence investigations for nearly 15 years, supported by robust remediation services.
If you are buying or selling property in WA and want to clarify contamination risks, contact us today.
