While new law is, perhaps, taking the limelight in the current Covid related economic climate, one particular law is as relevant as ever as parties seek to vary pre-Covid property contracts to either keep them alive or give new commercial meaning to them.
Last week we identified a number of variations to leases that landlords should consider. Variations to property contracts may also be necessary. Whenever a variation is made “for the sale or other disposition of an interest in land” (which includes an agreement or option for a lease), section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 must be considered.
Such variation must:
- Be in writing;
- Incorporate all the terms that the parties have expressly agreed in one document, or where contracts are to be exchanged in each document; and
- Be signed by or on behalf of each party.
Failure to comply with these requirements may result in the variation being unenforceable, so you cannot simply rely on a conversation or exchange of emails for the variation to be effective.
If you are considering making a variation to a lease or property contract, or you have concerns about the validity of a variation, please do get in touch.
