Climate change and property sales: what conveyancers and legacy officers need to know

Last month, the Law Society of England and Wales launched a consultation on guidance for conveyancers focusing on how they should advise clients on climate risk. The consultation is due to close on Thursday 31^st October and the Law Society will publish a Practice Note on their findings.

So what is the background to this consultation and how does this direction of travel impact legacy officers when they are dealing with property sales?

The Practice Note intends to cover:

• understanding climate risks for properties in the UK and what solicitors need to be aware of.
• solicitors' duties; and
• the advice which should be if / when climate change is poses a significant risk.

In essence, it recognises the growing need to consider climate risks in conveyancing transactions. In the UK climate change focus would include more scrutiny for example of the likelihood and impact on a particular property of flood, water shortage (affecting properties with private water supplies such as bore holes), gales but also drought and freezing.

Legacy officers and charity property

As a legacy officer, the increased focus on climate change denoted by the consultation, means you can expect buyers to start receiving more specific advice on climate risks such as those referred to above. This may lead to additional enquires being made of personal representatives and to buyers being even more cautious of properties with obvious risks.  As ever our advice is that personal representatives should decline to answer enquiries were possible on the basis, they have no direct knowledge of the property.  This approach reduces the risk of future claims.

Properties and insurance

As severe weather events occur more often, obtaining appropriate insurance on a property may become more complicated. In the administration of an estate where a charity beneficiary is involved, this could not only create a delay in encashing the assets of an estate. As a legacy officer, you should therefore ensure that personal representatives always have appropriate insurance in place and that this allows for all relevant risks. You may wish to consider consulting experienced surveyors who specialise climate risk for properties so that you can gain a better picture what sale value can realistically be achieved.

Severe weather events and climate searches

Solicitors may also offer buyers climate specific searches such as physical risk searches. These types of searches are still in their early stages of development and their impact on sales will only become clear over time.

So what is the impact on sales?

Ultimately, legacy officers should take advice as to the disposal value of property. Where a property is subject to particular climate change risks, this may be a particular prompt to obtain a s.119 (or similar) report event where this is not required on a statutory basis.  This will assist in ensuring the property is marketing in the best way to maximise value.

If you would like to read more about the consultation, you can do so here.

Please get in touch with Anna Phillips and the Charity Property team for any assistance.

This article was written by Junior Legal Support Assistant, Emma Peard.