Environmental considerations are becoming more important to the way we do business and our everyday lives.
When it comes to buying or selling land that has been classified as “contaminated” there are a certain rules and regulations that must be adhered to.
Under the Queensland Environmental Protection Act, anyone selling land must – before the contract is entered into – disclose if the property is listed on the Environmental Management Register (EMR) or the Contaminated Land Register (CLR).
The CLR and EMR are public registers containing information about contaminated land in Queensland. The EMR also includes details on land which is, or could be, contaminated because of an activity that could cause contamination.
If the seller does not disclose this information, the buyer can terminate the contract at any time, right up until settlement.
However, if the buyer is aware of the issue, they have the right to terminate the contract for 21 days after being notified. If they choose to go ahead with the contract after that time, they buyer loses the right to terminate the contract or to claim any kind of compensation.
Buyers should also be made aware of any details of any site management plan (SMP) in place for the land.
A landowner also has the obligation to give the buyer written notice if the land is subject to:
- a show cause notice
- an environmental evaluation requiring a site investigation to be conducted
- a notice requiring a SMP to be prepared or advising that a SMP has been prepared for the land
- a clean-up notice
- an order under s.458 of the Environmental Protection Act 1994.
Understanding your legal obligations as a landowner either selling or leasing land listed on either of these registers is essential in avoiding a buyer or tenant having grounds to terminate the contract or lease or being faced with penalties.
If you have any questions about buying or selling land that could potentially be on the CLR or EMR, talk to the experts at Bickell & Mackenzie. Our property law specialists can ensure you meet all your legal obligations. Contact our office on: (07) 3206 8700 or email: info@bimalaw.com.au
