Apportioning service charge—the standard conditions

In sales of investment properties where there are often many occupational tenancies with rental, service charge and insurance rent payments, sinking funds and rent reviews ongoing, the general regimes set out by both the Standard Commercial Property Conditions (Third Edition – 2018 Revision) and the Standard Conditions of Sale (Fifth Edition – 2018 Revision) (together the 'Standard Conditions') are often amended to deal more specifically with apportionments of these charges and transfer of sinking funds. The Standard Conditions provide as follows:

1. •

   Standard Commercial Property Conditions (Third Edition – 2018 Revision) (SCPC)

   1. ◦

      SCPC 9.3.2 (formerly SCPC 8.3.2 in the Second Edition) requires the apportionment date to be the date of actual completion (for sales with vacant possession and/or where the seller has opted to take both rental income and interest for any period of delay in completion) — otherwise the apportionment is made on the contractual completion date, regardless of whether completion takes place later

   2. ◦

      SCPC 9.3.3 (formerly SCPC 8.3.3 in the Second Edition) awards the day of apportionment