Environmental risks in transactions

When acquiring or selling real estate or property-owning companies, it is important to investigate and identify any environmental risks and subsequent liability that may arise. The typical risk concerns possible responsibility for soil contaminations. Such a liability can entail considerable costs and, in addition, prevent or obstruct the acquirer's purpose with the property.

In addition, many property owning companies may, in past times, have had a history as industry operating companies, implying a responsibility to remediate pollutions in soil and water that emanates from the company’s previous operations and that, hence, may come as a surprise for the current owner. Even though the pollution took place several decades ago, the legal responsibility remains, and special expertise is required to regulate such liability in the transaction documents.

Setterwalls’ team takes a holistic approach to all potential risks in a real estate transaction. We have extensive experience in advising on environmental risks in transactions and are and have been involved in a number of indicative processes regarding contaminated land that have driven the legal development forward.

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