FINLAND Law and Practice Contributed by: Kari Marttinen, Laura Leino, Outi Iso-Markku and Aino Lahti-Nuuttila, Erottaja Attorneys Ltd
17.2 Disclosure of Environmental Information The seller of real estate is obliged to provide the new owner or tenant with information on the activity carried out on the property and on any waste or substances that may cause contamination in the soil or groundwa- ter. Furthermore, the seller must provide the purchaser with the conducted surveys and information regarding possible remediation action on the property. Failure to do so may result in the annulment of the real estate deed of sale, a reduction in price or compensation for damages. The seller may be held liable for the prior contamination of real estate if they fail to disclose the information at the point of sale. As warranties are used to secure the purchaser, it is in the seller’s interest to disclose the relevant environ- mental information in a regular due diligence process and thereby avoid contractual liability for breaching a warranty.
17.3 Key Issues in Environmental Due Diligence Common environmental issues arising in legal due diligence are highly dependent on the project sub- ject to due diligence as well as on the objectives of the contemplated transaction. Issues reviewed in due diligence include permits required for the operations including their validity and the operator’s compliance with the permit terms, possible administrative com- pulsion processes, or compliance with applicable leg- islation in general. Furthermore, key issues reviewed also include: • potential (or risk of) soil or groundwater contamina- tion or other emissions caused by the operations, such as discharged waste water; • existence of protected sites/items or other restric- tions in the affected area, including needs for pos- sible additional permits in relation thereto; • ownership of or access routes to the relevant areas; or • existence of relevant land use plans and permits.
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