Case Study Flashcards
Why did you advise an overage clause of 30% for 30 years?
A typical overage clause is usually set between 25% - 50%. If an overage clause is set at the higher end towards 50%, it can deter purchasers as they will be required to pay half of any uplift in value to the overage holder. A higher overage clause would also likely impact the sale price and as the overage clause may never be triggered, I felt it would be better for my client to receive a higher sale price now with potential for further monies in future
If you sell to a neighbour or special purchaser, how do you ensure best value and that above market value is obtained?
What information did you include for solicitors to ensure it proceeded smoothly?
A memorandum of sale is a legal document that records the details of a sale of a property. It is used to record that the sale of a property has been agreed between buyer and seller subject to contract. It will contain as much relevant information as possible, including:
The address of the property
The agreed sale price
The names and contact details of the seller and buyer
Contact details of the solicitors representing the seller and buyer
The HMRC Land Registry number
Sale plan
Expected dates for exchange and completion
Information about the property, such as whether it is a freehold or leasehold
Any special conditions agreed as part of the same, for example, a sale at a specified price subject to certain repairs being made
What does the term exchange and completion mean?
Exchange is the point at which the sale becomes legally binding, preventing either party from withdrawing without significant penalties.
Completion is the final step where the buyer takes possession of the property, and all legal and financial aspects of the sale are concluded.
Can you talk me through the differences in values for selling the land as a whole and splitting it into two lots? In effect, the reasoning behind your advice?
