The following Property guidance note provides comprehensive and up to date legal information covering:
In this Practice Note, receivers, administrators and liquidators will, for convenience, be referred to collectively as Insolvency Practitioners (IPs), although it is not necessary for a fixed charge receiver to be a licensed IP.
In nearly all receivership or insolvency sales, speed is of key importance once a sale has been agreed. Considerable pressure is placed on all parties and their respective advisors to exchange contracts and complete in the shortest possible timescale.
In an administration, if the disposal is part of a pre-pack, both the agreement for sale and the transfer typically will be exchanged and completed as soon as the administrator is appointed.
If a pre-pack is not involved, the administrator will still want to dispose of the company’s assets and conclude the administration as quickly and effectively as possible. An administrator’s appointment is initially for a period of 12 months (which cannot be extended without the leave of the court or the creditors) and an administrator is under a statutory duty to perform its duties as quickly and efficiently as reasonably practicable.
Although not under the same statutory duty, a liquidator will also want to conclude the liquidation within a reasonable time.
Buyers should also bear in mind that any delay on their part might lead to the property being sold to another party who is able
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