What Do I Need To Consider When Selling A Piece Of Land?
Posted on 8th April 2020
Land sales can differ, in many ways, from a standard property sale and there can be numerous points to consider. MG Legal’s solicitors in Preston have formed a trusty checklist that you can use, should you wish to sell a parcel of land that you own.
- Instructing a Solicitor: First, and foremost, you should be instructing the best solicitor for you. Look no further than MG Legal’s Preston solicitors who specialise in, and deal with sales of land on a daily basis. Our team can advise you on the various matters you should be considering in connection with the sale, so, get in touch with our local solicitors today, at email@example.com, for a fixed-fee quote.
- What are you selling? Once you have instructed the expertise of a conveyancing solicitor, you should be considering exactly what it is you are selling. Question, are you selling the plot of land as a whole, or simply a parcel of the land? This is where the assistance of a surveyor may be required, to determine the exact boundaries that are to be sold in order to avoid any disputes over boundaries at a later date. Once the boundaries, extent of the land and the price have been agreed the real deliberation can begin:
- Rights Granted & Reserved: This is an important consideration for many as, following Completion, any such rights to the land may not be successfully claimed if not sufficiently provided for within the sale. You should carefully consider, with the assistance of your conveyancing solicitor, the need for any rights to be granted with the land, but importantly, any rights that are to be reserved for your benefit, or the benefit of third parties, on Completion. This can include rights of access, rights of entry, rights in connection with repair and maintenance, those in connection with the use of services, as a handful of examples.
- Covenants & Restrictions: In some cases, it may be necessary to impose covenants and restrictions on certain parties to the transaction. This may be to uphold the integrity and continued use of a particular service, or to avoid certain items falling into a state of disrepair.
For example, there is a water pipe which runs through the land that also serves the land being retained by the seller. As such, both parties require access and use of the same, therefore, it may be sensible that a covenant is imposed to confirm that the parties are not to carry out, or permit to be carried out, any act that may obstruct the use of the water pipe. In addition, there may be a covenant imposed which relates to the maintenance and repair of the same.
See our blog on restrictive covenants and what they mean for you, here. Restrictive covenants are legally binding, meaning they must be adhered to, in order to avoid any potential enforcement action by those who hold the benefit of the same. Covenants should, therefore, be considered carefully before being imposed on other parties.
- Overage Provisions: Where land is being sold, it is important to consider the potential need for any Overage provisions. This may be brought about in instances where the land is sold for development purposes and the new owner makes an increased profit on the land. In such cases, there is the opportunity for a ‘claw back’ provision that would require payment of an agreed sum to be paid to the seller, as a percentage of the profit made on the land. This is a very important consideration that should be decided for, prior to Completion of the sale. This is because, following Completion, without sufficient provision for such matters, there would be no form of recourse on the new owner for such payments. See our blog on Overage Deeds for more information on their purpose and importance, here.
- Any Mortgages or Charges: Are there any mortgages or other such charges secured against the land? Before proceeding to Completion of the sale, the buyer’s solicitor will require confirmation that any such entries against the title to the land will be removed. This is in order that the buyer can purchase a clean title, free from incumbrance of financial charges. Where part of a land title is being sold off, the parcel covered by such charge will need releasing from the same. Your Preston solicitors can contact your lender with the necessary documentation that would be required to discharge the land in the title from such charge, by way of what is called a DS3. You should make your conveyancing solicitor aware of any such charges over the land from the outset and ensure that before agreeing a sale, you contact your lender for their consent to proceed with the matter.
- Additional Considerations: Finally, you should consider whether there are any additional items that should be provided for. Your solicitors in Preston will assess each matter on a case-by-case basis, as our team understand that each matter is different and should be evaluated accordingly. For example, the land may have the benefit of a septic tank which, following Completion, the current owner may require access and use of. As such, your conveyancing solicitor would make provision for the same to ensure that all parties have the required access and rights to the same. There can be many other considerations that should be assessed in connection with the sale and your Preston solicitors can assist with this.
So, if you have a plot of land that you wish to sell, and do not know where to start, see our trusty checklist above as a starting point, and contact MG Legal, your local solicitors, today, at firstname.lastname@example.org. Our team can guide you smoothly through the process, pursuant to your specific needs.
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