Conveyancers and real estate lawyers have been given new climate risk guidelines by the NSW Law Society telling them to seek expert help when necessary.
The new NSW Law Society Guidance on Climate Risks highlights three key pointers for solicitors involved in property transactions.
It also warns them against giving advice where they are not qualified, urging them to seek expert scientific advice.
The three key points for lawyers are to: –
* Warn clients of risks with information pertinent to the client’s interest.
* Point out hazards of a kind which should be obvious to the solicitor but that the client may not appreciate.
* Disclose all information to their client in a clear and understandable way.
The updates come as property professionals face a growing threat that is putting $25 billion of real estate assets at risk because of coastal erosion – as highlighted in our February special report Fighting the Force of Nature.
With $13 billion paid out in climate-related claims since 2019 and bushfires expected to cost a $1.2 billion over the next 30 years, climate change is clearly going to have an impact the legal industry.
Those navigating contracts are also warned they may need to seek expert guidance about climate risk, rather than deal with the issue themselves.
Under a section in the 12-page guidance booklet under “Implications for legal professionals” it points out: “You are not climate scientists – seek expert help.
“A solicitor who does not have the relevant knowledge of the impact of climate change on the legal area they are advising on should not provide advice if it is outside their knowledge or competence.
“When a solicitor identifies a legal risk but considers they are unable to advise, the solicitor should liaise with their client about seeking specialist third-party assistance, such as technical consultants.”
It goes on to say: “Solicitors….must advise their client of the obvious practical implications of the client entering into the transaction the subject of the advice, but should not, however, provide opinions which they are not qualified to give.”
