Asbestos In Commercial Property

Asbestos can pose significant challenges in commercial property transactions. Do you know your responsibilities as a commercial property owner or manager? This article explains the legal requirements and your obligations.

What is Asbestos?

Asbestos refers to six types of naturally occurring silicate minerals. These minerals contain tiny, sharp, barbed fibres that can be dangerous when inhaled. When these fibres enter the lungs, they can cause chronic inflammation and scarring, leading to serious diseases like asbestosis. People used asbestos for thousands of years and extensively incorporated it into building materials during the 19th and 20th centuries.

Why Was Asbestos Used in Buildings?

Builders favoured asbestos because of its low cost and beneficial properties, including:

Fire resistance
Noise reduction
Thermal and electrical insulation

Due to its extensive use in the past, many older buildings in the UK still contain asbestos.

When is Asbestos Dangerous?

Asbestos becomes a health risk only when:

The material is damaged or deteriorated
The fibres become airborne and are inhaled

For example, an intact piece of asbestos insulation board remains safe if left undisturbed. However, disturbing or breaking down the material can release harmful fibres.

The Control of Asbestos Regulations 2012 (CAR 2012) require identifying and managing asbestos in non-domestic buildings across the UK. Regulation 4 designates the ‘dutyholder’—including owners, landlords, tenants, licensees, and managing agents—as responsible for:

Determining if asbestos is present or likely to be present
Managing any asbestos with an Asbestos Management Plan (AMP)

Asbestos in Commercial Property Transactions

Follow these steps to manage asbestos issues in commercial property transactions:

Buyer’s Solicitor Enquiries: The buyer’s solicitor should ask the seller if they have complied with CAR 2012.
Asbestos Survey Report: Request an asbestos survey report or an AMP before exchanging contracts.
Post-Completion Liability: If you discover asbestos after completing the transaction, you may be liable under CAR 2012 if the responsibility transfers upon completion.

Regulatory Enforcement

The Health and Safety Executive (HSE) enforces asbestos control regulations. Failing to comply can lead to criminal charges for the dutyholder. The presence of asbestos can also impact the usability of commercial premises and affect property development or changes in use. Therefore, investigating asbestos before finalizing a commercial property purchase is essential.

Commercial Buying or Tenancy

At Burtons, we proactively ensure that specific inquiries are made early to determine if an Asbestos Report is available. This approach helps us assess the management measures in place if asbestos is present.

Commercial Selling or Leasing

If you are selling a commercial property or granting a new lease, we will verify that you have completed an Asbestos Report. This report is crucial for the buyer’s or tenant’s solicitors.

For the latest guidance on asbestos in commercial properties, visit the Gov.uk website here.