The transfer of land always involves an element of risk due to the caveat emptor principle. Where the land involved is contaminated (or possibly contaminated) the risk element is automatically increased as vendors often attempt to play down the level of contamination and the associated risks. Conveyancers are obliged to ensure that sites are free from all possible encumbrances for their clients before the sale is completed.

The House of Commons Environment Select Committee has recommended that the caveat emptor principle should be amended as far as land contamination is concerned and that vendors with knowledge of any contamination or potential contamination on their land should be forced to disclose this. Rejecting this advice, the Government accepted recommendations that the caveat emptor principle should remain.

Thus, it seems that buyers of any potentially contaminated sites will have to continue to be wary about entering into transactions, despite proposals for the registration of contaminated land under the Environment Act 1995. This paper consists of a review of current practice by conveyancers in the UK and an examination of the pitfalls and opportunities open to those buying and selling contaminated or potentially contaminated land.

The paper identifies areas of weakness within conveyancers' practices and procedures which can and do result in site purchasers unwittingly bearing the risks associated with contamination. The paper ends with recommendations to help real estate professionals avoid common mistakes (and thus financial losses and possible claims in professional negligence) and also to assist the relevant professional bodies in strengthening their guidance.