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Update: residential property

Janet Armstrong-Fox discusses preventing a sub-sale, the increase in the annual rent threshold for assured shorthold tenancies, a change to Land Registry policy on identification evidence, and the wording of contracts

4 October 2010

Preventing a sub-sale

The majority of residential sale and purchase contracts use the Standard Conditions of Sale, Fourth Edition, as the basis of the contract with special conditions to augment or vary the Standard Conditions.

Standard Condition 1.5 states that the buyer is not permitted to transfer the benefit of the contract. It does not provide that the seller cannot be required to transfer the property to anyone other than the buyer, as is contained in the Standard Commercial Property Conditions, Second Edition. Consequently, when the Standard Conditions are used, unless this additional constraint is provided in a special condition, the residential sale contract will contain nothing to prevent a sub-sale.

In Pitack v Naviede [2010] EWHC 1509 (Ch) contracts had been exchanged for the sale of a leasehold property. The contract incorporated Standard Condition 1.5, but no other provisions regulating to whom the property could be tra...

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