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Hello everyone,
I am based in England.
I'm in the process of purchasing a share of freehold flat. The sales memorandum indicates it's a share of freehold transaction, and the seller has promised that the freehold will be transferred to the management company once all flats are sold. However, I'm concerned about how legally binding this promise is.
After reviewing the lease and contract, I've found that the only mention of freehold transfer is this clause in the lease:
"The Management Company hereby covenants with the Landlord that upon a transfer by the Landlord of its freehold interest in the Building to the Management Company the Management Company will enter into a covenant with the Landlord and in such form as the Landlord may reasonably require to observe and perform the covenants and conditions on the part of the Landlord specified in Schedule 5."
There's no mention "freehold" or the promise to transfer the freehold in the contract at all.
To complicate matters, our lawyer initially missed that this was supposed to be a share of freehold transaction. She confidently told us it wasn't, until both the seller's solicitor and I corrected her. This has made me worry about her experience and attention to detail.
Given this situation, I'd greatly appreciate advice on:
If anyone has experience with this kind of situation or legal expertise in this area, I'd be very grateful for your insights.
Thank you in advance for your help!
I am based in England.
I'm in the process of purchasing a share of freehold flat. The sales memorandum indicates it's a share of freehold transaction, and the seller has promised that the freehold will be transferred to the management company once all flats are sold. However, I'm concerned about how legally binding this promise is.
After reviewing the lease and contract, I've found that the only mention of freehold transfer is this clause in the lease:
"The Management Company hereby covenants with the Landlord that upon a transfer by the Landlord of its freehold interest in the Building to the Management Company the Management Company will enter into a covenant with the Landlord and in such form as the Landlord may reasonably require to observe and perform the covenants and conditions on the part of the Landlord specified in Schedule 5."
There's no mention "freehold" or the promise to transfer the freehold in the contract at all.
To complicate matters, our lawyer initially missed that this was supposed to be a share of freehold transaction. She confidently told us it wasn't, until both the seller's solicitor and I corrected her. This has made me worry about her experience and attention to detail.
Given this situation, I'd greatly appreciate advice on:
- What specific clauses should be added to both the lease and the contract to make this freehold transfer promise legally binding?
- What key phrases or legal terms must be used?
- How can we ensure this obligation transfers to future owners of the freehold?
- What mechanisms should be in place for enforcement?
- Should there be a timeframe specified for the transfer after the last flat is sold?
- Are there any potential pitfalls or loopholes I should be aware of?
- Given our lawyer's initial oversight, what steps should I take to ensure everything is properly handled? For example, I potentially want to bring the supervising senior into the conversation, however I of course don't want to insult her.
If anyone has experience with this kind of situation or legal expertise in this area, I'd be very grateful for your insights.
Thank you in advance for your help!
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