Property Drafting

Question 1

What is the wording of an indemnity covenant in a license to assign?

Answer 1

The Assignee covenants with the Assignor, the the Assigee will from the date of this deed until the end of the term granted by the Lease, pay the Rent and observe and perform the Lease Obligations and keep the Assignor indemnified against all proceedings, costs, claims and expenses arising from any failure to do so.

Question 2

What is a clause for assignment?

Answer 2

In consideration of the Premium paid by the Assignee to the Assignor, the Assignor assigns the Property to the Assignee for the unexpired residue of the term granted by the Lease, subject to the payment of Rent and the Lease Obligations.

Question 3

What is included in the background of a license to assign?

Answer 3

• deed is supplemental to lease
• assignor agreed to assign lease to assignee on terms of this deed
• consent of the landlord has been obtained

Question 4

What does an entire agreement clause state?

Answer 4

This deed constitutes the whole agreement between the parties and supersedes all previous discussions, correspondence, negotiations, arrangements and agreements between them relating to this subject matter

Question 5

What is the contract rate on a contract for sale?

Answer 5

Law society’s interest rate from time to time in force

Question 6

Example special condition for indemnity policy

Answer 6

The Seller shall, before completion provide to the buyer an Indemnity Policy for an insured sum of at least £758,000 in respect of the restrictive covenants in a conveyance dated 13th February 1927 referred to in Entry 2 of the Charges Register of Title No. HP722096. The policy shall be in a form approved of by the Buyer (such approval not to be unreasonably withheld or delayed) and shall be handed over by the Seller to the Buyer upon completion.

Question 7

What it the wording for a restrictive covenant?

Answer 7

Transferee covenants with transferor, with the intent that the burden of the covenant will run with the land and the Property and every part of it and that the benefit of the covenant will be annexed to and run with the Retained land to observe and perform the covenants set out below:

Question 8

What is the execution clause for a TR1/TP1?

Answer 8

Signed as a deed by ……

In the presence of
Signature of witness
Name
Address