Contract for the sale of mixed-use freehold land subject to commercial and short-term residential leases

by Practical Law Property

A standard document contract for use on the sale and purchase of a mixed-use freehold property in England, which is sold subject to existing commercial and short-term residential leases. This contract incorporates the Standard Commercial Property Conditions (Third Edition – 2018 Revision) (SCPC) and is drafted to be adaptable for both registered and unregistered land. This contract addresses the complexities of a tenanted property sale, including provisions for the apportionment of the purchase price, outstanding rent reviews, and the assignment of rent deposits for commercial leases. It assumes that the sale will be a transfer of a going concern (TOGC) for VAT purposes. The contract also provides a detailed framework for managing residential tenancies. Specific clauses govern the transfer of tenancy deposits, with mechanisms for handling deposits that relate to both assured tenancies and common law tenancies. Furthermore, this contract outlines procedures for the treatment of rent arrears and the reconciliation of service charges and contains obligations for property management between exchange and completion.