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ACP > 3.2 Development Issues > Flashcards

3.2 Development Issues Flashcards

1
Q

What will L likely opt to use in A4L to ensure T completes on time, or A4L terminates if fails to do so

A

Notice to complete procedure - making time of the essence

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2
Q

Why allow for long-stop date for delays

A

If issue does not resolve itself, parties should be able to walk away

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3
Q

If defect in L’s retained premises, who is liable and who will pay

A

L liable, but will recover through service charge

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4
Q

If defect inside T’s premises, who is liable and under what

A

T under repairing Os

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5
Q

Who drafts A4L

A

L’s S

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6
Q

What method is commonly used for Completion Statement

A

Surveyor’s method

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7
Q

Why disregard T’s works at RR

A

Artificially inflates hypothetical lease - only benefits L

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8
Q

If T carried out works but L requires reinstatement under A4L, what should you ensure it says

A

Such as L may reasonably require

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9
Q

If T in strong position, what could you negotiate for in terms of T’s A’s defect notice

A

Require L’s A to act reasonably in considering DN, and take reasonable action necessary to temedy

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10
Q

Why should you try to ensure T keeps control if L does depart from plans

A

Ensures premises remain appropriate for occupation + delay is not excessive

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11
Q

Kilmartin v Safeway said what

A

‘Usable’ area is for sensible purpose in connection w/ proposed occupation - included entrance ramp but not fire exits or lift

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12
Q

What kind of notice for A4L is more vulnerable

A

Unilateral

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13
Q

Two things to check for A4L + lease, prior to completion

A

Prepare engrossments + annexures, and ensure both sides have signed

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14
Q

When do CWs become important

A

When DLP runs out

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15
Q

What is the nature of A4L and what does that mean - personal or tied to land?

A

Personal, so T cannot require L to grant to 3rd, and L’s Os cannot be enforced against successor L

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16
Q

T’s payment obligations if supply of services to L

A

T accounts to HMRC for VAT on inducement

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17
Q

If L is to carry out works, how to deal w/ T’s supervision?

A

Surveyors to enter at 3 points - sufficiently complete for occupation, practical completion + final completion. Can also state ‘at reasonable times’ w/ no limit. T to give reasonable written notice.

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18
Q

Provisions for T to carry out works in A4L are the same as in what doc, done after completion as part of property management

A

Licence to Alter

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19
Q

Why deal w/ delay provisions through force majeure + LADs if L to carry out work

A

Some issues not within L’s control so no damages, but should pay damages if within control.

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20
Q

What are the four ‘Quarter Days’

A

25 March, 24 June, 29 September, 25 December

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21
Q

If land is multi-let, who keeps the CDM Regs folder

A

L

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22
Q

Who must be joined to A4L or not bound to give guarantee on completion

A

Guarantor

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23
Q

Why ensure that T can supervise L’s works?

A

Constant supervision of work ensures keeping w/ agreement + verified by agent of T (rather than of L)

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24
Q

Why should premises be measured by independent party

A

To avoid disputes

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25
Q

What will L want to get if has to pay VAT on inducement given to T

A

VAT invoice

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26
Q

What is the procedure under 38(1) LTA if 14 day gap before T bound

A

Warning notice served on T (+ G) + T (+G) signs simple declaration

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27
Q

When is Completion Statement prepared

A

After exchange of A4L, prior to completion.

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28
Q

Two differences between agreed and unilateral notices

A

Agreed is public (unless Exempt Info), and requires consent of proprietor

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29
Q

When is A4L negotiated

A

W/ lease

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30
Q

What is the surveyor’s method

A

Take yearly rent (separating out each charge in ‘Rents’), add any VAT, divide by 365, then times by number of days to next QD

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31
Q

What should measuring provision state if parties cannot resolve their differences

A

Explicitly set out independent party to go to

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32
Q

Is there a tolerance level under Kilmartin/6th edition RICS

A

No - below or above the limits = no tenancy, or capped rent

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33
Q

Round to how many decimal places for each stage in surveyor’s method

A

Two

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34
Q

Why deal w/ measuring provisions through 6th edition RICS

A

Certainty

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35
Q

In what two circumstances will L want to terminate A4L

A

If T insolvent, or if T fails to complete on agreed date

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36
Q

How to avoid A4L being public on LR

A

EX1 + EX1A for Exempt Info

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37
Q

How to define ‘Access Date’ when T to carry out works

A

Architect to verify stage when T can enter - Premises completed to reasonable satisfaction of architect

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38
Q

Two possible definitions for ‘Term’ in A4L

A

From lease being granted, or when T occupies

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39
Q

In surveyor’s method, when do you count from and to

A

Include completion but exclude next QD

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40
Q

What can be obtained to avoid T being liable for construction defects

A

CWs from whole Professional Team + architect

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41
Q

If L is to carry out works, how to define standard of construction

A

Good and workmanlike manner, w/ good quality materials or such other materials as are substantially similar

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42
Q

What is T granted to carry out works before lease completed

A

Mere licence w/o ability to trade

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43
Q

If T is required to reinstate, what should you ensure regarding RR

A

Provision is considered at RR

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44
Q

What two things could be explicitly stated to help w/ measuring under Kilmartin + 6th edition RICS

A

State use contemplated + ‘Internal Area’

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45
Q

How can you reg A4L at LR - for reg and unreg

A

C(iv) if unregistered, or notice if reg

46
Q

Why must A4L be registered

A

Gives interest in land

47
Q

Why should L insure premises after CoPC

A

In case anything happens prior to T entering into occupation - unlikely to be T’s fault if before this point

48
Q

How does T become only client under CDM Regs

A

Make declaration to H&S Executive

49
Q

Why make sure reinstatement clause considered at RR

A

Absence of reinstatement clause makes hypothetical lease more attractive

50
Q

What obligations will T have to neighbours if carrying out works

A

Not to cause nuisance, and to tidy up premises

51
Q

By when should T get CWs from Professional Team + architect

A

Before practical completion

52
Q

When is A4L exchanged

A

Before lease

53
Q

Why define standard of construction

A

T ensures good end product, and L ensures not subject to high and costly burden

54
Q

Why would you want to define ‘Works’ if L carrying out works

A

Ensure clarity over L’s Os

55
Q

Who insures works if T to carry out works

A

T

56
Q

Two kinds of notice for registered land

A

Agreed and unilateral

57
Q

Why ensure that architect acts reasonably when determining if T can enter to carry out works

A

To ensure other deadlines are not triggered too early, e.g. when to complete works by, and when to start trading

58
Q

Insurance provision under A4L if L to carry out works

A

BC to insure until CpOC, and L insures until completion, and after continues to insure but collects from T

59
Q

Form for unilateral notice for A4L

A

UN1

60
Q

For VAT inducements, does it matter if T/L have opted to tax

A

No

61
Q

Why is an agreed notice not private

A

Have to provide evidence, which means the A4L is then not private

62
Q

Four reasons why A4L may be used

A

Financing, anchor T, possible alterations or for conditionality

63
Q

When will L have to pay VAT on inducement given to T

A

If lease requires L to pay ‘plus VAT’

64
Q

Why not oblige L to use ‘high’ quality materials?

A

Too burdensome + costly

65
Q

What is the procedure under 38(1) LTA if LESS than 14 day gap before T bound

A

Warning notice served on T (+ G) + T (+G) signs statutory declaration

66
Q

Why will L want to terminate if T becomes insolvent

A

Covenant strength is vital

67
Q

Why is T only granted a mere licence prior to completion of lease to carry out works

A

To ensure not granted tenancy at will through early possession

68
Q

If L is to carry out works, how to deal with delay

A

No compensation if force majeure, but LADs if within control. Both subject to long-stop date.

69
Q

How to deal w/ measuring the premises for occupation of T if L to carry out works

A

Lower + upper limit cap depending on size, to be measured by independent party

70
Q

Why should you define standard of construction if T to carry out works

A

L ensures good end product + T ensures not subject to high (and costly) burden - works do not need to be perfectly completed

71
Q

What to do if T’s works extend beyond ‘Demise’

A

Extend lease covenants to alterations outside

72
Q

Why should T be able to enter to supervise L’s works more than once?

A

There is more than one phase, so able to enter at least once per phase

73
Q

What inducements might L offer to T to take premises

A

Rent-free period or contribution to T’s work

74
Q

What supply of services might T make to L on taking lease

A

E.g. marketing as anchor tenant, or carrying out works on behalf of L

75
Q

Why should T have Os to neighbours when carrying out works

A

To protect the rest of the land and its occupiers

76
Q

If L carrying out works, how to deal with T wanting L to depart from plans

A

L to agree to reasonable requests of T, but subject to T paying costs + extending long-stop date

77
Q

What must applicant show for Exempt Info app to be successful

A

Prejudicial to commercial interests for A4L to be public

78
Q

What should L ensure if under A4L/lease L is obliged to pay LADs for delay within L’s control

A

Ensure LADs also in BC

79
Q

What is it usual to provide for in A4L if T to carry out works w/ regard to CDM Regs

A

T only client, appoints Principal Designer, and keeps folder if land is SINGLE LET

80
Q

Why does the A4L being a personal contract mean value of reversionary interest is not affected

A

Successor to L cannot be tied to L’s Os in A4L

81
Q

When is the surveyor’s method relevant?

A

If gap between completion and next QD - to work out rent

82
Q

What does the principal designer do

A

Advises until end of construction

83
Q

Use what edition for measuring premises

A

6th edition of RICS code

84
Q

What case does 6th edition of RICS Code codify

A

Kilmartin v Safeway

85
Q

What has to be supplied w/ AN1 for agreed notice

A

Evidence (A4L)

86
Q

When will there be no supply from T to L for VAT purposes - what entity might T be

A

Exempt - bank/BS

87
Q

When might T have to pay VAT to HMRC for taking lease

A

If L is paying T an inducement

88
Q

If A4L being used, by when must contracting out procedure be done

A

Before A4L exchanged - A4L = bound to enter

89
Q

Standard of construction if T to carry out works

A

Good and workmanlike manner, good quality materials or such other substantially similar materials

90
Q

A4L is what kind of contract

A

Estate contract

91
Q

If L is to carry out works, how should you deal w/ L’s ability to depart from plans

A

L can make minor reasonable variations, or T can require L to seek its approval/veto/T can terminate if can’t agree (acting reasonably)

92
Q

Who considers if T’s works are completed, and how must they act

A

Architect - must act reasonably, determining if completed to its satisfaction in all material respects

93
Q

Is there VAT payable if there is no supply for the inducement given to T

A

No

94
Q

When is SDLT payable by

A

Within 14 days of the ‘effective date’ which = ‘substantial performance’

95
Q

What key term in A4L is it important to define

A

‘Term’

96
Q

Why might T have to pay VAT to HMRC for taking lease

A

If supply of services from T to L

97
Q

Why might L want to be able to make minor variations to plans

A

To comply w/ PP

98
Q

If L is to carry out works, how should you define works

A

Attach spec/plans (+ check BC is the same). Define PP if relevant

99
Q

When might there be SDLT implications when using A4L

A

May be ‘substantial performance’ from entering to e.g. fit out, so payable within 14 days

100
Q

What is it normal to provide for in terms of L considering T’s A’s defect notice

A

Only to pay ‘due regard’

101
Q

‘usable’ = sensible purpose

A

Kilmartin v Safeway

102
Q

What common annexure is there to A4L

A

Agreed form rent deposit deed if deposit to be paid

103
Q

Who might also have to sign A4L/lease

A

Guarantor

104
Q

What will T have to pay VAT on if inducement = rent-free period, and supply was marketing their presence

A

VAT on value fo rent-free period

105
Q

What obligation should T NOT have to neighbours when carrying out works

A

Not to cause annoyance - too subjective

106
Q

Kilmartin key

A

‘usable’ = sensible purpose

107
Q

What kind of notice for A4L does not require registered proprietor’s consent nor evidence

A

Unilateral

108
Q

Under what provision of what statute is security of tenure procedure

A

38(1) LTA ‘54

109
Q

What to ensure about RR if T to carry out works

A

Works disregarded at RR

110
Q

App for agreed notice

A

AN1

111
Q

When is a Principal Designer required

A

30+ workers for 20+ days, or 500+ working person days

112
Q

What 3 stages should T’s A be able to enter to supervise?

A

Sufficiently complete to occupy, practical completion and final completion

ACP (12 decks)

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