In a sale of part transaction, the preparation of the documentation is more complicated than for a simple sale of whole. In many cases rights need to be granted for the benefit of the property being sold, and rights need to be retained for the benefit of the land which the seller is keeping. A seller may also want to impose restrictions on the land being sold.

Set out below are some common issues which need to be considered on a sale of part: –

Rights which need to be granted for the property

When splitting up pieces of land, a landowner needs to think about the possible rights to be granted to the buyer:-

  • Does the land being sold have an independent access or is a right of way required over the retained land?
  • Does the land being sold need the right to use existing services (water, drainage, electricity, gas etc.) or the right to lay new services under the retained land?
  • If so, the buyer will also need the right to enter the retained land to inspect maintain and repair such services in future.
  • Can any buildings to be constructed on the land being sold be maintained without access onto the retained land or do rights need to be included for this?
  • If any access or services are used jointly by the land being sold and the retained land then provisions should be included regarding the cost of maintaining and repairing of such shared items.

Rights which need to be reserved for the retained land

Rights which need to be reserved for the retained land are extremely important and such retained rights may include the following:-

  • A right of way over any access included in the land sold.
  • The right to use or lay services etc. under the sold property.
  • The right to enter the property, following completion of the sale to inspect, maintain and repair any services used by the retained property.
  • The right to enter onto the land being sold to maintain any buildings on the retained land.
  • A provision that the land being sold is not entitled to any rights of light which would restrict future development on the retained land.
  • Specific provisions may also be necessary if any foundations or gutters of any buildings overhang the boundary.

Read more: What is a Sale of Part of a Property?

Covenants on the buyer

The seller may wish to impose certain obligations on the buyer, for example:-

  • Restricting the use of the land being sold e.g. for residential purposes.
  • Restricting the type / number / height of buildings to be constructed on the land sold.
  • If there is joint access, who pays for the maintenance of this? What type of access is permitted – vehicular, pedestrian etc.? Are there any restrictions e.g. hours of use, security requirements, gates etc.?
  • If there is a boundary line, should a fence or wall be put in place to mark this boundary? If so, who is responsible for erecting and subsequently maintaining this?

Conversely, the buyer may wish restrictions to be imposed on the seller’s retained land.

If you are are involved in the sale of part, either as a buyer or seller, and you require legal assistance then please give us a call on 0116 289 7000.

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