CZECH REPUBLIC Law and Practice Contributed by: Martin Řanda, Jan Lexa, Vít Fišer and Adam Vopelka, act legal
17.3 Key Issues in Environmental Due Diligence The most common environmental legal issues that arise in a transaction are invalid environmental per- mits or other documents required by law, usually due to their expiry. Another frequent finding is the failure to fulfil reporting obligations. In connection with this, the risk of administrative liability and potential sanctions is then assessed.
The requirement under Act No 406/2000 Coll, on Energy Management, as amended, for a seller to pro- vide a Building Energy Performance Certificate in the context of a property sale or lease may be viewed as an example of environmental disclosure. Furthermore, under the general principles of contract law, environmental information is typically regarded as part of the negotiation process between the parties. Disclosure of environmental information by the seller can also serve to limit the risk of liability for factual or legal defects affecting the transaction target.
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