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Sub-sale - check contract |
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If you are acting for a buyer who may want to sub-sell, then check that it
will be permitted under the terms of the contract. Whilst such a right to
sub-sell is automatically implied at common law (ie requiring the seller
to execute a transfer to the buyer’s nominee – such as a sub-buyer), that
is usually excluded. Standard Condition 1.5 says ‘the buyer is not
entitled to transfer the benefit of the contract’ (and there is identical
wording in Standard Commercial Property Condition 1.5.1).
Accordingly, if a sub-sale is a possibility then make sure the standard
condition is excluded. Otherwise, the buyer can insist on your client
completing with him (which will cause extra SDLT and LR fees, as well
as complications with the registration). © Practical Lawyer
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April 2008 |
