The following Property practice note provides comprehensive and up to date legal information covering:
Under an agreement for lease, the tenant’s obligation to take the occupational lease only arises once the developer’s works have been completed and are fit to be taken over by the tenant. This will occur when the works are certified as being practically complete.
This expression is borrowed from the standard forms of building contract which refer to the supervisor of that contract (often referred to as the 'architect' or 'employer’s agent') issuing a statement or certificate of practical completion when practical (or sometimes substantial) completion of the works is achieved.
There is no standard industry definition of practical completion. Consequently, ensure that the agreement for lease contains its own definition. Definitions often incorporate the terms:
‘complete and defect free’, or
‘capable of beneficial use and occupation’
The latter is the more usual because the former would appear to preclude the usual practice of certifying practical completion under the building contract with a snagging list setting out minor defects.
From the developer's perspective, the certificate issued under the building contract should stand as the required certificate under the agreement for lease, so that completion of the works under both the building contract and the agreement for lease occurs simultaneously. If certification under both the building contract and the agreement for lease is not simultaneous, the developer
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**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
Take a free trial
Multilateral Trading Facilities (MTFs)BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and
Methods of statutory interpretation used to resolve ambiguities in legislationIP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP
Arbitration agreements—definition, purpose and interpretationThis Practice Note considers the nature and scope of arbitration agreements with a particular focus on arbitration agreements pursuant to the law of England and Wales, although it also discusses the concept from an international
Highways, street works and statutory undertakersCoronavirus (COVID-19): This Practice Note contains guidance on matters that have temporarily been altered to assist in the management of the coronavirus (COVID-19) pandemic. For further information, see: Traffic Orders Procedure (Coronavirus)
0330 161 1234