Climate Change Practice Note Published

 

The Law Society has released its Climate Change Practice Note, accompanied by a Supplementary Technical Note, outlining expectations for property lawyers in advising on the impact of climate change on property transactions.

According to the Law Society, the new practice note complements existing guidance on flood risk and contaminated land and follows the consultation launched in September 2024. That consultation sought input from conveyancing solicitors, industry bodies, local law societies, and conveyancing associations through roundtable discussions and feedback sessions.

The note covers examples of climate risks in property transactions, guidance on advising clients about climate risks, acting for clients in various types of transactions, considerations regarding valuations and surveys.

The Law Society’s Property Conference in October 2024 gave an early indication of what the Practice Note would entail. Warren Gordon, Senior Professional Support Lawyer at CMS Cameron McKenna Nabarro Olswang LLP, explained that it was essential to outline potential liability risks associated with climate change — including long-term property value, saleability, and the ability to obtain insurance.

On the topic of firms’ liability when offering advice, Environmental Lawyer Keith Davidson stated that failure to advise clients could potentially be seen as negligence. He emphasised the importance of providing relevant information and directing clients back to data providers for further specialist advice where risks are identified.

 

The Law Society acknowledged that consultation responses revealed most participants did not feel confident discussing climate risks with clients and expressed a strong interest in receiving more training and resources. Law Society Vice President Mark Evans stated: “We have ensured that the new practice note is positioned as voluntary guidance that seeks to assist the profession in dealing with a new challenge on which they had little clarity in how to deal with. The new practice note includes practical guidance to support solicitors to navigate this important and complex topic. It contains helpful resources, such as draft wording for a report on title that limits their liability, that members have recognised will assist them in dealing with climate risk.”

 

Writing in this publication, former Groundsure CEO and now sector consultant Dan Montagnani commented that the validity of climate change is no longer in doubt, and its impact on property assets — including their use, enjoyment and value — is increasingly evident: “The reality of climate change however is that the reality itself is changing. A more diverse range of climate-driven outcomes is upon us and with that a more diverse range of consequences lay ahead. March and early April 2025 have seen record dry periods with wildfires burning across the landscapes of all four home nations – before we have even reached Easter. Each year we see record weather statistics increasingly pointing back to the science evidence that our global climate is changing with increasing recognition for instance of a UK wildfire season.”

 

This sentiment is shared by Stephen Sykes, Head of the Environmental Team at Capital Law and a Director of GeoData Labs (GDL).

The Law Society’s Climate Change Risk and Property Practice Note (PN) has been anticipated since the release of its Climate Change Guidance in April 2023, which established that solicitors have a duty to advise clients about climate risk. This duty was first identified by Stephen Tromans KC in 2023; I was pleased to instruct Stephen on behalf of an environmental search provider. Therefore, the PN does not come as a surprise. It reinforces the principle that climate risk is conveyancing risk — and must be addressed in every property transaction.

Millions of properties are currently exposed to climate risk, making a comprehensive investigation essential. Conveyancers should commission a climate search in addition to, or instead of, a standard environmental search. These should encompass all the risks outlined in the PN — such as sea level rise, wildfire, heat stress, water stress, flooding, and coastal erosion — all of which may affect both the property and its supporting infrastructure.

Once the climate search has been completed, conveyancers should record the key findings in the report on title and consider using the sample clauses included in the PN.

It is also crucial to explain how climate risks may affect a property's insurability, mortgage availability, and long-term market value. 

 

Source: Today's Conveyancer

 

13 May 2025

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