The property contract

Question 1

What are the requirements for a property contract under s2 LP(MP)A 1989?

Answer 1

Contract must be:

• in writing

*incorporate all the terms which the parties have expressly agreed

*be signed by, or on behalf, of each party to the contract

Question 2

What is the purpose of a property contract?

Answer 2

*fix a completion date

*tie related transactions

*set out obligations, such as buying furniture and other contents

*include conditions such as obtaining specific planning permission

Question 3

When would it be unnecessary to have a property contract?

Answer 3

*a gift of property between family members

*land of low value, such as when one neighbour agrees to sell the other a couple of feet at the end of the garden

Question 4

What is the standard form contract for residential property transactions?

Answer 4

Standard Conditions of Sale (SCS)

Question 5

What is the standard form contract for commercial transactions?

Answer 5

Standard Commercial Property Conditions (SCPC)

Question 6

What are tailor made contracts?

Answer 6

commercial transactions commonly use precedents from the firm’s own precedent bank. They usually incorporate the SCPC and amend them as required.

Question 7

When must parties adopt SCS?

Answer 7

If the parties are adopting the Law Society Conveyancing Protocol.

Question 8

What are special conditions?

Answer 8

The Standard Conditions of Sale may be amended, excluded or supplemented by special conditions.

Question 9

When should a solicitor following the Law Society Conveyancing Protocol make special conditions?

Answer 9

Only when they are absolutely necessary.