Brodies.com
Environmental clauses in commercial leases are increasing. Single let properties often hold tenants liable for contamination, while multi-let buildings may make landlords responsible.
Pre-existing contamination can pose complex issues, leading to confusion over responsibility. Landlords may mistakenly assume that once a property is leased, environmental liability transfers entirely to the tenant. However, this is not always the case, as some clauses only cover specific statutory regimes initiated by local authorities.
Claims from third parties or other environmental legislation may still land at the landlord's doorstep. Tenants may negotiate specific clauses to address liability. Landlords may have to agree to assume liability for pre-existing contamination, depending on the property's nature and location.