Conveyancing
Environmental due diligence
Tony Rollason discusses due diligence in relation to search reports for possible environmental hazards.
About the author
Tony Rollason is regional manager (Legal) at Landmark Information Group.
As part of all property transactions, it is the conveyancer’s role to carry out appropriate due diligence by submitting searches about the property in question.
They are ultimately designed to help uncover any potential environmental risks, which may not be physically apparent, but have the potential to impact on the buying client’s enjoyment of the property.
A YouGov survey commissioned by Landmark, in 2015, found that over one- fifth of UK homeowners (22%) said that they relied on the guidance provided by solicitors when receiving environmental search reports.1 However, a separate YouGov study, commissioned by the Know Your Flood Risk campaign, found that only 20% of people actually check their potential for flooding before moving into a new home.2
It therefore pays to offer as much environmental, location and property information within the conveyancing process as possible. This is particularly important in this day-and-age, as if a client does not believe that the information was made available or explained to them at the outset (and they later have an issue), there is the risk that they may pursue a legal negligence case against their conveyancer.
It is, therefore, vital that the right searches are recommended to clients to ensure that the most thorough research is carried out. But, with so many available, where should you start?
CON29DW FLOOD+
The CON29DW enquiry is an essential element of the conveyancing process, providing vital details relating to drainage, water and sewerage services, which may help to protect homebuyers from unnecessary risk.
A new breed of search reports has launched that is designed to provide additional data relating to flood risk, on top of the standard information. Severn Trent Searches was the first to launch what it calls the CON29DW FLOOD+, which incorporates flood risk screening data from Landmark.
The new drainage and water search report combines the data into one single, detailed report, and is the first of its kind to provide flood risk data as part of the essential drainage and water search automatically.
The CON29DW FLOOD+ contains the official Law Society recommended CON29DW drainage and water enquiry, which is based on Severn Trent Water records and includes advice on connection status, location of public pipes and whether a water meter is installed.
It also includes information from Landmark regarding the most common types of flooding, as recommended by the Law Society’s practice note: Flood Risk.3
The report also contains insurance rating data to offer an indication of the number of flood-related insurance claims per 1,000 houses in the postcode sector, in addition to helpful maps to display the findings in an easy-to-digest format.
It is not always immediately obvious when a property is at risk of flooding, the CON29DW FLOOD+ has, therefore, been introduced to help homebuyers. Not only does it simplify the conveyancing process for all involved, but will ultimately help homebuyers make a more informed decision as to whether more detailed flood analysis is needed from their conveyancing lawyer.
Today, conveyancers have the option to access all-in-one digital risk reports that analyse a range of potential environmental threats via one single order. These assess a range of environmental risks, including:
- flood risk;
- contaminated land;
- ground hazards; and
- energy and infrastructure.
The combined analysis is delivered in an easy-to-read, lightweight PDF report, some including professional opinions and recommendations on the findings from an external environmental consultancy, plus interactive weblinks enabling conveyancers and homebuyers to be able to ‘click-through ’ and instantly view the data on an interactive online map.
Conveyancing innovation: a case study
Nick Masheder of Beaumont Legal talks about the adoption of RiskView Residential; an all-in-one environmental report and its role in delivering a fast and efficient service:
Previously, we would undertake an information-gathering exercise and present clients with a range of options, including which searches were available and the prices for each. We found, however, that customers could be baffled by the choices.
When we heard that a search was launching that not only included all environmental information in one report, but also a digital mapped view of the results, we were intrigued to find out more.
Having seen RiskView Residential in action, we were impressed. By offering a simple search option, we can offer simple pricing too - plus it provides clients with reassurance that we cover all risks for them.
We have now integrated RiskView into our customer portal. Customers feel empowered: we get the data to them quicker; it is easy to understand what the searches are telling them, and they can interrogate the data via the digital map online. Through the portal, clients can instruct us at any time and pay online.
This approach is what people expect today: people are used to buying goods and services online, so why should conveyancing be any different?
Conveyancers also have the option to access reports that focus on specific risks, for example, a Homecheck Professional Flood Report provides a detailed analysis of the likelihood of flooding at a given property, assessing a variety of flooding sources, such as river, coastal, surface, and groundwater.
In certain locations, there is the option to carry out location-specific searches on risks that are dependent on the location or type of property. For example, in Devon and Cornwall it is highly recommended to carry out mining searches due to the history of mineral extraction across the counties, namely, tin, coal and limestone.
The PlanSearch Plus report contains a host of information, including all planning applications and land use designations within 250m of a property (or 500m in rural areas), along with details of all planning applications since 1997, rights of way, and housing and neighbourhood information, including council tax bands and local amenities.
Specialist reports are available to assess land contamination risks relating to large land holdings, such as farmland, woodland, wind farms and small holdings. One example is the Argyll EstateSolutions Brief, which provides analysis of potential land contaminant risks and environmental hazards with related maps, with conclusions and recommendations.
Ultimately, the level of environmental risk detail available to conveyancers today provides assurances that, as part of your duty of care, you have represented your client’s best interests throughout by providing highly relevant due diligence information that can be relied on as part of the purchasing process.
1 “Too complicated’, ‘Slow’, ‘Needs Modernising’. YouGov homeowner survey identifies views relating to property conveyancing, based on personal experiences', Landmark Information Group news, available at: https://tinyurl.com/hlltl4u
2 ‘Two-thirds of UK households fail to check flood risk levels ‘, Know your flood risk ™ campaign, June 2015, available at: https://tinyurl.com/hbxg4la
3 Available at: https://tinyurl.com/gq9ggke