CONTAMINATED SITES ACT 2003

WHAT IS MEANS TO REAL ESTATE AGENTS

REIWA Rural Chapter Regional Meeting 31 August 2012 – The Vines

Peter Michael

WHAT YOU NEED TO BE AWARE OF AND HOW YOU CAN “VALUE-ADD” FOR:

your landlords;Your tenants;Your sellers;Your buyers

WHY IS THE NEW LEGISLATION IMPORTANT TO YOU?Making sure the position of your

landlord/seller/buyer is protected.Making sure your position is protected.

IT’S ALL NEW!The legislation came into effect on 1

December 2006.The accompanying regulations and policies of

the Department of Environmental Protection (“DEC”) are new.

The administrative structures for administering the Act are new.

There’s been no body of decisions or determinations by DEC, the Contaminated Sites Committee or the Supreme Court.

ENQUIRIES THAT CAN BE MADEThe Contaminated Sites Database:

Contaminated – restricted use;Contaminated – remediation required;Remediation for restricted use.

Enquiries that can be madeReported Sites Register:

Report not substantiated.Possibly contaminated – investigation required.Decontamination.Not contaminated – unrestricted use.

Enquiries that can be madeLandgate searches – Memorials to be

registered against the title to sites with the following classifications:Contamination – remediation required.Contamination – restricted use.Remediation for restricted use.Possible contamination – investigation

required.Contaminated Sites Management Series – DEC.

YOUR OWNERDoes your owner know what his obligations

are under the Act?Mandatory rep0rting of known or suspected

contaminated sites by owners.Failure to report – large monetary penalties.

Your OwnerThe Act provided a 6 month period, i.e., until

31 May 2007 for contamination to be reported.

After 1 June 2007:All owners must report to DEC within 21 days

of “knowing”.If an owner “suspects” that a site is

contaminated, they must report “as soon as practicable”.

Your OwnerDisclosure Statements.Is the owner entitled to an Exemption

Certificate?Contamination is self assessment.If in doubt, engage an environmental

consultant.

IS YOUR CLIENT RESPONSIBLE FOR REMEDIATION?An owner wishing to develop and therefore

change the use of the land.Owner who bought before 1 December 2006

with knowledge or suspicion or reasonable grounds for knowledge or suspicion of contamination.

An owner issued with a statutory notice by DEC.

SALE AND PURCHASE, LEASING OR MORTGAGING OF SITES THAT ARE AFFECTED BY THE CONTAMINATED

SITES ACT

The Contract:Due diligence condition.Contract conditional on contamination status of

property being confirmed, e.g., no regulatory notices and status being satisfactory to buyer.

Planning conditions related to contamination, e.g., rezoning, subdivision, development approval, building application approval.

PETER MICHAEL