The Commercial Property Contract of Sale is essential for any transaction involving the purchase or sale of commercial real estate in England and Wales. It is used when parties have agreed on basic terms and need to formalize the transaction. The contract includes crucial details such as property description, price, completion date, title guarantees, and any existing tenancies or encumbrances. It ensures compliance with land law requirements and provides certainty for both parties. This document is particularly important as it forms the basis for the property transfer at the Land Registry.
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1. Parties: Details of seller and buyer, including full legal names, company registration numbers (if applicable), and registered addresses
2. Background: Context of the transaction, including brief property description and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including defined terms for Property, Completion Date, Purchase Price, etc.
4. Property Description: Detailed description of the property being sold, including address, registered title number, and extent of the property
5. Sale Price: Purchase price, payment terms, deposit requirements, and method of payment
6. Title Guarantee: Extent of title guarantee provided by seller and any title restrictions or encumbrances
7. Completion: Completion date, completion requirements, and procedures for completion
1. VAT Provisions: Details of VAT treatment and elections - required if the property is VAT-elected
2. Existing Tenancies: Details of current tenants and treatment of ongoing leases - required if property is sold subject to existing leases
3. Environmental Provisions: Environmental warranties, indemnities, and obligations - required when environmental risks are identified
4. Construction Provisions: Details of ongoing construction works and associated obligations - required if property includes incomplete construction
5. Planning Conditions: Specific planning-related conditions and requirements - required if there are planning permission issues
1. Schedule 1 - Property Description: Detailed property description, including plans, boundaries, and rights granted/reserved
2. Schedule 2 - Title Documents: Copy of title register and plan, and list of disclosed encumbrances
3. Schedule 3 - Existing Leases: Copies and details of any existing lease agreements affecting the property
4. Schedule 4 - Planning Permissions: Copies of relevant planning documents, permissions, and certificates
5. Schedule 5 - Environmental Reports: Environmental surveys, assessments, and relevant certificates
6. Schedule 6 - EPCs: Energy Performance Certificates and related documentation
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