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Climate Risk in Property Transactions: Solicitors’ Duties, Due Diligence and Searches under Law Society PN25 (England and Wales)

Practice notes
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Introduction

The escalating effects of climate change are creating fresh categories of risk for property owners, occupiers, lenders and lawyers. On 12 May 2025, the Law Society of England and Wales released its Practice Note on Climate Change and Property (PN25), together with a supplementary Technical Note explaining physical climate risks. PN25 sets out how climate-related risks should be approached in property transactions across residential, commercial and mixed-use assets. These risks are not solely an issue for landowners or society at large; they carry legal ramifications too, as evidenced by the growing body of climate litigation. PN25 reflects the Law Society’s view of good practice and does not amount to legal advice. It recognises that certain subjects, such as the physical effects of climate change, extend beyond purely legal matters and that solicitors are not competent to advise on them. However, subject to client instructions, solicitors should address the legal consequences of any potential liabilities arising from physical or transition risks specifically identified on the particular transaction by the parties, advisers or search results. In particular, conveyancers should consider embedding climate risk assessment into due diligence and reports on title, or risk breaching their professional obligations and...

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Web page updated on 21/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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