The following Restructuring & Insolvency guidance note Produced in partnership with Tim Carter of Stevens & Bolton LLP provides comprehensive and up to date legal information covering:
Real estate often forms part of the assets of an insolvent company to be sold by an administrator and can frequently be key to a potential buyer so it can continue the business after completion. However, a buyer does need to be aware that there are a number of significant differences in the acquisition of a property from an insolvent company and the buyer will need to take a different approach from when a company is solvent. This Practice Note highlights the key differences in approach between acquiring property from a solvent company and one that is in administration, typically in the context of leasehold transactions, although freehold transactions are also covered.
Contracts for the sale and purchase of land are founded on the legal principle of caveat emptor (buyer beware) which means it is the buyer’s responsibility to carry out as much due diligence as it needs in order to satisfy itself that it wants to proceed with the acquisition of a property. Ordinarily a buyer would be afforded the requisite amount of time properly to satisfy itself but in the context of a sale of a property owned by an insolvent company, timing is key, especially in a pre-pack situation. The administrator will want
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.