The Law Society has issued a practice note on how solicitors should address climate change risks when advising on property transactions. It follows a lengthy consultation which found that many practitioners felt unable to confidently discuss climate risks with their clients and would be interested in more help.
The note covers: examples of climate risks in property transactions; how to advise on climate risk; acting for clients in different types of transactions; and valuations and surveys.
It also clarifies issues upon which solicitors are not qualified to advise, such as the physical risks of climate change, where clients should seek advice from other professionals including surveyors. Professional indemnity insurance may not cover this type of advice, it stresses.
Today’s note builds on what the Society described as ‘milestone’ climate change guidance for solicitors issued in April 2023. A world first for national bars, this included guidance for organisations on how to manage their business in a manner consistent with the transition to net zero.
Law Society vice president Mark Evans said: ‘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.’
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