Buyer’s contract negotiation guide—management and maintenance contracts
Buyer’s contract negotiation guide—management and maintenance contracts

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Buyer’s contract negotiation guide—management and maintenance contracts
  • Management between exchange and completion
  • How to deal with maintenance contracts

Management between exchange and completion

Following exchange the parties will need to agree how management matters will be dealt with in the period until completion. Buyers should be most concerned about this issue where the property is multi-let and where there is a significant gap between exchange and completion. For a single-let property with a short period to completion (say less than a month) the buyer can take a more relaxed approach and may be happy to rely upon the Standard Commercial Property Conditions (Second and Third Editions) (SCPCs). This will help in ensuring prompt agreement of the contract too.

What do the SCPCs provide?

The SCPCs (Second and Third Editions) (4.1 and 4.2 for the Second and 5.1 and 5.2 for the Third Edition) prevent the seller from:

  1. serving a notice to terminate a lease or accepting a surrender

  2. serving any notice or taking any action as landlord under the occupational leases unless the buyer consents. If the seller requests consent the buyer must not withhold consent where it would place the seller in breach of its lease or statutory obligations. Deemed consent arises if the buyer does not refuse consent within 10 days or if the buyer is not entitled to withhold consent

These conditions include a general obligation for the seller to manage the property in accordance with