However, the reality is that environmental considerations already arise frequently in property transactions, with agricultural and rural property transactions being no exception.
For those planning on embarking on the sale or lease of agricultural land, the following environmental matters are relevant to consider.
Deposit of Waste
Effective waste management is a key consideration for agricultural operations. In terms of the Waste (Scotland) Regulations 2005, farms now have a duty of care, like any other business, to dispose of agricultural waste safely with no harm to the environment. Agricultural waste may involve, for example, packaging, silage plastics, redundant machinery, tyres and old fencing. Such waste must be stored and disposed of responsibly, handled only by an authorised individual or business, and the disposal recorded through a system of 'waste transfer notices'.
When purchasing a property, it is important for the buyer to ensure that farm waste is being managed correctly. In particular, care should be taken that legal obligations are complied with where 'special waste' (including asbestos, sheep dip, cleaning chemicals and pesticides and herbicides) is concerned.
Invasive Non-Native Species
Non-native species are animals or plants that have been introduced by human activity to an area in which they do not naturally occur. Non-native species are considered to be invasive when they have the potential to spread rapidly and become dominant in an ecosystem with negative ecological impacts, for example, Japanese knotweed, giant hogweed and Himalayan Balsam.
In Scotland, non-native species are covered by the Wildlife and Countryside Act 1981. The legislation is designed to protect the natural environment and prevent the release of non-native species 'into the wild'. Generally, agricultural land and private and public gardens are not considered to be 'in the wild' and if you own land, there is no legal requirement to control established non-native species. However, you are expected to take reasonable steps to prevent non-native species from escaping or spreading into the wild.
The presence of invasive non-native species on a property can be problematic, as it can cause physical damage (affecting value, marketability and insurability), be expensive and time-consuming to eradicate, damage biodiversity and carries the risk of criminal or civil liability. A buyer should therefore consider whether there is a presence of such species on the property they intend to purchase or lease.
Renewable Incentives
Renewable support schemes, such as the feed-in tariffs (FITs) scheme, are offered by the Scottish Government to promote the uptake of low carbon electricity generation technologies. Where a property is being conveyed, if the site in question includes a FITs installation, the parties will need to consider how a change of ownership of the site will affect the FITs position and payments and ensure that any necessary administrative formalities required by the regulator are complied with.
Permits and Licences
The Water Environment (Controlled Activities) (Scotland) Regulations 2011 ("CAR") requires certain activities which may affect Scotland's water environment to be authorised by SEPA. Activities within the scope of CAR include:-
- Discharges (e.g. sewage and trade effluent discharges, abandoned mine discharges and disposals of waste sheep dip and other waste pesticides)
- Diffuse pollution (e.g. storage and application of fertilizers, keeping of livestock, cultivation of land, discharge of surface water run-off, application of pesticide and operation of sheep dipping facilities)
- Abstractions (e.g. construction of, and abstraction from, wells and boreholes)
- Engineering works in inland water (e.g. construction of new bridges, ford and culverts or river diversification and realignments)
- Activities which adversely affect groundwater (e.g. agriculture, chemical storage and energy)
If you are purchasing a property on which you intend to carry out such an activity, then you should be aware that certain regulations must be complied with and/or an authorisation must be obtained or transferred.