#16687 - Contract Conditions - Property Law and Practice

SCPC 9 & 10

Remedies

SCs 7.4 & 7.5

SCPCs 10.5 & 10.6

• If S requires a P-i-C from B, S will often draft an express term to this effect on back page

  • very common but not strictly necessary [already covered by SC 4.6.4(a)/SCPC 7.6.5(a)]

• For S to pay for some form of insurance (if there are any title issues); e.g. defective title insurance, to protect against breach of restrictive covenants

• For a 2nd Trustee to be appointed before completion

  • where sole co-owner held as T-i-C & 2nd Trustee not appointed before exchange)

• Regarding VAT - to override SCPC Pt 2 A1.3 & A1.4

• To override SCPC 10.3 (to protect B as well as S)

The conditions in Part 2 shown against the boxes checked below are included in contract:

Condition Al (VAT: not a taxable supply)

[or] Condition A2 (VAT: transfer of a going concern)

Condition B (capital allowances). The amount of the purchase price apportioned to plant and machinery that are fixtures for the purposes of the Capital Allowances Act 2001 is

Condition C1 (flats: no Ts’ rights of 1st refusal)

[or] Condition C2 (flats: with Ts’ rights of 1st refusal)

And delete “exclusive of VAT” from Contract front page

To fully protect Buyer, negotiate to:

• insert additional Special Conditions on back page: “any sums payable under this Contract are deemed to be inclusive of VAT” (to override A1.3 & A1.4)