Legal Drafting - Property Practice

Question 1

Contract for sale: what should be inserted under:
a) Specific incumbrances
b) Contract rate
c) Contents price
d) Balance
e) Buyer and seller
f) At the end of the first page

Answer 1

a) Insert rights that will continue to bind the buyer

b) ‘The Law Society’s interest rate in force from time to time’

c) Value of anything that is being sold with the property (eg: chattels)

d) Purchase price LESS deposit PLUS contents price

e) Name and addresses of parties (those who are alive)

f) ‘The seller will sell and the buyer will buy the property for the purchase price’

Question 2

How can an indemnity covenant be drafted?

Answer 2

1. (by way of an indemnity only) observe and perform the covenants referred to in [cite entry of Charges Register] (‘the Covenants’) so far as they are subsisting and capable of taking effect; and
2. Indemnify the transferor against any liability incurred for any breach or non-observance of the Covenants occurring after the date of this transfer

Question 3

When drafting easements or restrictive covenants, what should be inserted before the specific rights are detailed?

Answer 3

Easements = a declaration of no implied easements
- ‘This transfer does not include any easements other than those expressly granted in this Transfer’

Restrictive covenants = a declaration that the covenants will run with and bind the land
- ‘enter into a covenant with the Seller to the intent that the burden of the covenant will run with and bind the Property and that the benefit is annexed to and run with…’

Question 4

What is the structure for an undertaking?

Answer 4

Dear [x]

[COSTS] UNDERTAKING IN RESPECT OF [application - eg: licence to assign the lease] BETWEEN [parties]

We act for [x] in connection with [x]

We undertake to…

Yours faithfully/sincerely