Section 49 of the Law of Property Act 1925—summary procedure for contractual issues and orders for repayment of deposits
Produced in partnership with Victoria Jones
Section 49 of the Law of Property Act 1925—summary procedure for contractual issues and orders for repayment of deposits

The following Property Disputes guidance note Produced in partnership with Victoria Jones provides comprehensive and up to date legal information covering:

  • Section 49 of the Law of Property Act 1925—summary procedure for contractual issues and orders for repayment of deposits
  • Section 49 of the Law of Property Act 1925
  • When is it appropriate to use the section 49(1) procedure?
  • How should an application under section 49(1) be made?
  • What order is the court likely to make under the section 49(1) procedure?
  • When does the buyer have a right to ask the court to return their deposit under section 49(2)?
  • Example of when section 49(2) may arise in practice

Section 49 of the Law of Property Act 1925

This Practice Note considers the procedure under section 49(1) of the Law of Property Act 1925 (LPA 1925), by which a buyer or seller of an interest in land may, between exchange and completion, make a summary application to court in respect of:

  1. any requisitions or acquisitions

  2. any claim for compensation, or

  3. any other question arising out of or connected with the contract (other than a question affecting the existence or validity of the contract)

The section applies to a contract for the sale or exchange of an interest in land.

The court may make such order as appears just, including an order as to the costs of and incidental to the application. The court cannot award damages.

This note also deals with a buyer's rights under LPA 1925, s 49(2) to ask the court to return their deposit in appropriate circumstances.

When is it appropriate to use the section 49(1) procedure?

The s 49(1) procedure (also known as a 'seller and buyer summons') is designed to be a relatively quick and inexpensive procedure for resolving disputes between a seller and buyer arising out of or connected with a contract for the sale of land. It is appropriate for the determination of isolated points of dispute and examples of the types of

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