no-win situation

I fully endorse the comments of Graham Ireland in his letter (see [2000] Gazette, 7 September, 18).

We have adopted a policy of carrying out environmental searches on all property acquisitions and we take the view that it may well be a breach of the Council of Mortgage Lenders' code if this is not done.

In our experience these searches are at least as important for second-hand properties as for new ones, although it is clear from discussions we have had with other firms that there are varying opinions about this.

Problems frequently arise since almost all environmental searches reveal several entries and there are no guidelines as how to interpret these results.

Mortgage lenders in these situations will merely require solicitors to state whether they are or are not satisfied with the position so no help can be gained from that source.

Our analysis is that if a report discloses anything potentially adverse, such as a landfill site, this may have an effect on the value of the property.

As solicitors we are not in a position to decide whether or not the matter is significant.

An approach can be made to an appropriate body, such as the Environment Agency, which may (but by no means always will) be able to provide more specific information about the matter revealed by a search.

However, it will not give any opinion about the importance of the matter.

Armed with as much information as we are able to gather it would seem appropriate to refer the matter back to the valuer and ask for his opinion as to the effect on value.

Invariably, however, he will not express an opinion since in practice it is impossible to determine what the effect on value is likely to be without carrying out a detailed survey, probably involving an environmental consultant.

As solicitors we are in a no-win situation.

If we do not carry out environmental searches this may be regarded as negligence.

If we do carry out the searches and allow a client or mortgagee to proceed notwithstanding that entries are revealed, we will almost certainly be accused of negligence if a problem arises.

We are faced with criticism from our clients for delaying transactions and bringing up problems to which we can offer no solution.

JAW Parkes, Keely Beedham Solicitors, Lichfield